Its been another turbulent 24 hours for Bitcoin and Bitcoin Cash. Bitcoin Cash hit a high of just over $2800 before dropping back, meanwhile Bitcoin has continued to dropping down to as low as $5676 before regaining a little to around $6100 at time of press.
Is The Flippening Taking Place
Well no one can deny their is some serious buying power going on, many are calling it a korean pump, however the Korean markets are only making up the usual 1/3 of the market, so i’m not sure we can entirely put this recent price surge down to a Korean pump.
We suspect the real cause can be put down to a number of factors, firstly with Segwit2x cancelled, therefore no hardfork, therefore no need to hold onto BTC to ensure protection through any hardfork that could of occurred. So many people immediately after the news that Segwit2x was off collected their profits or began investing in other currencies.
Soon after the Segwit2x NYA was called off we heard from the Bitcoin Classic development team who announced that they would no longer be supporting the legacy bitcoin wallet, they also went onto say that Bitcoin Cash would supercede Bitcoin within 6 months.
“It is now up to you which chain will gain the most traction. It is now up to the next billion people to start to use Bitcoin Cash. In at most six months I’m sure we’ll just drop the ‘Cash’ and call it ‘Bitcoin,’”
We’ve also had the likes of John McAfee expressing is belief that Bitcoin Cash could replace Bitcoin, not because he is a true supporter of the BCH Bitcoin offshoot, but being realistic about the situation:
Roger Ver also made the announcement that all his mining power would be shifted towards Bitcoin Cash by default:
Roger Ver believes that Bitcoin Cash is in fact the real Bitcoin, he claims that Bitcoin Cash is more inline with Satoshi’s original whitepaper, in the following interview we can hear Roger interviewed by Max Keiser:
Max Kesier himself is clearly not a fan of Bitcoin Cash though, if you’ve been following him on Twitter recently you’ll see where we make this assumption from:
Another poll he recently tweeted was this:
So does the original Bitcoin chain have something to worry about?
Initially I would of said no, not at all, however we can’t ignore the huge amount of volume and value that has been added to Bitcoin Cash over the past 48 hours. The question is, can it be sustained. If this is just merely a pump by supporters, followed by many FOMO buyers then technically we should see momentum die off. However, if the value can be sustained over the next few days it is inevitable that more and more people regardless of where their chain loyalties lie, will begin to buy into the Bitcoin Cash chain.
So What Should You Do?
Well, there is no way of knowing how all this will turn out, however, if your not sleeping well at the moment and the Bitcoin Cash threat is making you a little nervous than here is a suggestion, and please remember, it is just that – a suggestion:
If you have 10 Bitcoin, then buy an equal amount of Bitcoin Cash, so effectively divide your Bitcoin portfolio up into equal BTC and BCH. Yes you’ll potentially take a loss if Bitcoin Cash drops back off and dies away, but at the same time your protected if Bitcoin Cash continues to head north.
If you have equal parts of both your worst case scenario is that you’ll loose around 10% of your portfolio, but that is significantly a far better scenario than loosing 90% of your portfolio.
The alternative is to shift your assets into another currency, of course the safest is back to fiat, however there could be some nice gains to be made in the Altcoins right now so it’s worth considering some of the more established cryptocurrencies such as Litecoin and Ripple as safe havens for your digital assets. In theory what happens with Bitcoin and Bitcoin Cash should not ultimately affect these coins, so you can sit back from the sidelines and see how it plays out.
Whatever you do please make sure you make decisions based on your own research, but if your really clueless to what to do then the only real safe bet is converting everything back to fiat, at least no losses can be made this way, you’ll just miss out on any potential gains.
Disclaimer: Statements contained within this post do not represent the views or policies of anyone other than the writer. The information contained within this article is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.