Last month, the Bitcoin hard fork created Bitcoin Cash. Since then, the price has fluctuated wildly between $100 and $900.
Will Bitcoin cash fail?
The answer to these 3 questions will determine that:
1 ) Will Bitcoin cash mining remain profitable?
That is a loaded question, because the mining network works in such a way that if the hash rate decreases, the mining difficulty decreases, and more has power will move from Bitcoin(BTC) to BitcoinCash(BCH). You can follow the BCC hashrate here:
https://bitinfocharts.com/comparison/bitcoin%20cash-hashrate.html
But, as soon as the hash rate goes back up, the difficulty decreases and miners move back to BTC. Miners could easily get sick of switching back and forth, and commit to BTC. In that case, BCH would go into a death spiral.
2 ) How quickly will Coinbase customers sell their BCH in January?
Last month, Coinbase announced they would not support BCH at any level. A customer based legal action had them quickly changing their minds:
Coinbase has 10 Million customers, a lot of Bitcoin, and an equal amount of BCH. They alone could probably sink BCH.
3 ) Will a second fork dilute BCH?
Bitcoin may fork again later this year:
http://www.businessinsider.com/bitcoin-price-fork-might-happen-again-2017-8
If Bitcoin forks again in November, you can expect both BTC and BCH to be diluted slightly. Considering BCH, and the new Coin, slated to be called BTCx, will only have one use, for investment purposes, don't expect them to compare to BTC. In this case, BCH will feel the most pain.
Congratulations @coinmonkey.com! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP