Bitcoin Cash Is Not ‘Free Money’
Since the Bitcoin Cash hard fork appeared, many people see this token as “free money”. It is true that these coins will be given free to users, but they are definitely not free coins. In fact, many people think that Bitcoin Cash will reduce the value of Bitcoin.. Just like Ethereum Classic did to Ethereum. Although the price of Bitcoin Cash is not yet officially known, it will not be free as many people think.
THIS IS NO FREE MONEY IN THIS MARKET
Bitcoin Cash to everyone with Bitcoin as much as their share (BTC) will be given, don’t be fooled. As you know, the Bitcoin in your account will be given a one to one BTC. So if you have 100 Bitcoins, you will also have 100 Bitcoin Cash.. After you buy it, you can either use this token to trade in the market or convert it to the coins we know.. But Bitcoin Cash can lower the price of Bitcoin for a period of time.
We can use numbers to describe this situation.. Currently the price of 1 Bitcoin Cash is around $300. As of now, this token is not yet in use.. But there is no guarantee that the current value will continue like this.. Let’s say the value of Bitcoin Cash managed to stay at $ 300. For this value to be held, something has to come from somewhere.. So, Bitcoin’s price could drop.
Let’s keep going with the numbers. Suppose the price of 1 Bitcoin was $2800 at the time of the Bitcoin Cash split.. Keep the value of Bitcoin Cash at $300. On that day, it is quite possible that the price of Bitcoin will suddenly drop to $2500, that is, a full $300 drop.. Because as we said, Bitcoin Cash has to get something from somewhere to maintain its value.. The most likely place to get something is in Bitcoin itself.. If there is a split, there will be 2 different versions competing with each other.. So the value of the Bitcoin network – the market volume – will be divided into 2 different blockchains. This is why we may see very serious fluctuations in the price of Bitcoin and Bitcoin Cash for a few days after August 1st.
We cannot predict how many of the investors in the market will leave Bitcoin for Bitcoin Cash.. Even now, even though the hash rate is increasing, Bitcoin Cash is still in a smaller fork.. It is also likely that users will support both Bitcoin and Bitcoin Cash at the same time.. An investor can support both at the same time, as there is hardly any reason to love one of the two blockchains and hate the other.. Of course, there will still be those who leave one and support the other, but it is too early to predict how things will turn out.
As you are well aware, it is almost impossible to say anything definitively in the cryptocurrency market.. It is not certain that Bitcoin will gain or lose value if the split occurs.. We can only speculate on this at the moment.. But we know that the value of Bitcoin Cash has to come from somewhere.. The strongest possibility is that the Bitcoin price will be affected.
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