Bitcoin‘s price dropped a bit, meanwhile Bitcoin Cash‘s price rose. Bitcoin.com (just a great domain, not an official site) even said it was going all in on Bitcoin Cash. Likewise, one of Bitcoin’s old forks, Bitcoin Classic, decided it was going to follow suit, shut down, and put its weight behind Bitcoin Cash.
Here one must note: Bitcoin.com is just a website some lucky guy bought, Bitcoin classic is a failed fork, a notable touter of Bitcoin Cash and “lucky guy” Roger Ver has a dark track record (consider, he owns bitcoin.com and was affiliated with the Bitcoin classic fork…), and Bitcoin Cash is considered by many to be an altcoin.
None of those entities are the Bitcoin Core community behind the current Bitcoin.
Thus, this is all a little strange on one hand, but it is just the ongoing drama of Bitcoin Cash and Bitcoin Segwit2x on the other (drama that has been going on for years under different names like Bitcoin classic, Bitcoin Unlimited, Bitcoin XT, etc (all related to Roger Ver in one way or another).
NOTE: This is not investing advice. This is insight into what is happening with crypto today. You have to make your own choices here. A crash is likely, a correction is currently happening. It is unlikely that Bitcoin Cash prevails, but what you do with all this in mind is on you.
With the above in mind, going all-in on Bitcoin Cash right now based on this news (like many appear to be doing) is a giant gamble, there is not widespread adoption of Bitcoin Cash at this point, not like there is for Bitcoin.
Likewise, panic selling Bitcoin at under $7k (when it traded above $7k for two weeks) is probably not the best move either.
Yes, it is true that Bitcoin is currently dipping a bit, and on that note Ether and Litecoin are losing value too. In fact, the entire crypto market is losing weight right now (see coinmarketcap.com; almost literally every coin except BCH is red… that is wacky).
It is likely this is the start of at least a minor correction for coins. However, as noted, Bitcoin Cash is immune to the panic and gaining value (and essentially causing the correction).
And that is the real point here. Everyone is pulling out of everything not Bitcoin Cash and going into Bitcoin Cash. However, this is likely not a wise trend to follow.
We need to all understand that crypto is in a strange space because Segwit2x isn’t happening and some people had gone all in on Bitcoin’s forks (emotionally and financially). Thus, it is almost expected that we would see a little chaos here.
The chaos and correction makes sense, and so does the Segwit2x community shifting their weight to Bitcoin Cash for a minute, but don’t let this all distract you from the core reality here.
When you go to Thanksgiving, will your family ask you how your Bitcoin Cash is doing? Probably not, because Bitcoin is a brand name and Bitcoin Cash was a coin created from a recent fork. Thus, if they ask you about crypto, they will say “how is Bitcoin?”
Maybe the know the term blockchain, but it ends there. They know Bitcoin and Blockchain.
The GBTC trust holds Bitcoin.
The Bitcoin core team deals with Bitcoin (although they generally gave their blessing to the Cash fork).
My family doesn’t ask me about Ether, but it really doesn’t ask me about Ether Classic.
Now, I’m not saying that Bitcoin Cash won’t convince the entire world and its miners to switch over to Cash due to a few coding differences. I’m just super, super skeptical of it.
I get that Bitcoin.com and some Segwit2x supporters have decided to move to Bitcoin Cash because (in simple terms) it is faster than Bitcoin and therefore works a little better as a currency.
I’m just not seeing how they plan to get the world to go along with the idea. If people got stoked on transaction speed, wouldn’t they have switched to litecoin in 2015 or something?
It is not like we all just realized Bitcoin is slower than other coins.
Bitcoin didn’t just become slow yesterday. Like, this was back in 2009 when Bitcoin was less than $1. This was known when it was born.
Plus, anyway, Bitcoin isn’t really commonly used as a currency. Honestly, coins like Litecoin are much better for that.
Maybe Bitcoin Cash can do very well, and maybe it can ride Bitcoin’s brandname’s coattail and become a solid investment (in the short or long term), but the idea that will become the dominate Bitcoin in general is a little far fetched at this point.
Bitcoin is the brand name and value store that will see futures trading soon. It is the one the logo refers to. It is the one that vendors take. It is the one that the documentary is about. Etc.
Meanwhile, Bitcoin Cash is what most people consider an altcoin.
I won’t offer every pro and con of Bitcoin and Bitcoin Cash here and now.
Likewise, I won’t give you my big list of reasons why you should average into a position in Bitcoin no matter what it does (even if we have to ride this down through a crash like the early September one).
If Bitcoin crashes and Bitcoin Cash skyrockets, it’ll likely be a boon to have some Bitcoin Cash as an investment, thus I’m certainly not telling you to avoid Bitcoin Cash…
I’m just saying that this whole Bitcoin Cash rally is a little shady and panicking before the dust settles feels a lot like trading Segwit2x futures (not a great idea the point of view of the present).
Anyway, to reiterate the above points: there are countless faster coins that Bitcoin. You aren’t buying speed. You are buying an agreed upon, limited supply, brand name, value store, that is like a mix between digital gold and a digital dollar with a slight delay.
It takes me days to buy and sell a stock or physical Gold (at a good price). Bitcoin is ALMOST instant. Bitcoin Cash is a little faster for day-to-day purchases… but like, so are a lot of other coins.
The point here is: be wary of panic selling Bitcoin and going all in on Bitcoin Cash AND be wary of selling off your Bitcoin with the expectation of a crash. Anything could happen. However, the most likely thing to happen right now is minor correction before a rally back to $10k Bitcoin and $300 – $600 Bitcoin Cash (i.e. same-old-same-old). UPDATE: Clearly Bitcoin went up, and while Bitcoin Cash did go back down, it eventually made its way up to respectable valuations as well In retrospect it was generally the right move to buy Bitcoin and not Bitcoin Cash in these times, but luckily for those who went with Bitcoin Cash, it ended up being a solid play compared only to itself.