Why a fork in cryptocurrencies like Bitcoin signals conflicting opinions
November 14, 2018
Last year, when Bitcoin cash was forked out of Bitcoin, the value of both the cryptocurrencies skyrocketed before falling dramatically and now falling slowly with each passing day. This has led some experts to believe that there are bigger rifts in the Bitcoin community that may get exposed in different ways.
Just about 3-4 months after the fork of Bitcoin cash, Bitcoin developers, miners and others using the currency were waiting for another fork of the Bitcoin. This was associated with the SegWit2x protocol.
Just days before the fork was supposed to happen, the people behind the fork called the fork off, instead calling for people to unite across different groups for the interest of all cryptocurrencies including Bitcoin.
Scaling up the demand for Bitcoin
The main disputes that bother Bitcoin investors, developers and miners is that Bitcoin needs to accommodate more transactions to cater to the increasing demand. Many people are saying that Bitcoin’s software is unable to cater to additional transactions as its software is in a need of an upgrade.
Those who want a hard fork believe that this ought to be done as soon as possible to ensure that Bitcoin becomes mainstream for the rest of the world.
When the first hard fork resulted in the creation of Bitcoin cash, it made gains while Bitcoin faltered significantly. The fact that a second hard fork was planned and then cancelled, shows the underlying conflict in the Bitcoin community.
Conflicting interests between the main and forked currencies?
An article published in the MIT Technology Review said that in some circumstances there is a change of Bitcoin cash putting a dent in Bitcoin’s value.
In the current scenario, however, using the Online Cryptocurrency Exchanges trading in Bitcoin it is not easy to say whether Bitcoin’s price is correlated with the increase in Bitcoin cash’s value. In fact, many people are speculating that due to the news of the cancellation of the hard fork, Bitcoin and Bitcoin cash’s same pool of investors choose Bitcoin cash instead of Bitcoin resulting in its price downfall.
Due to the fork, there is also substantial talks in the cryptocurrency markets that another currency might take over Bitcoin(Ethereum for example) in market value. Though this has not happened yet, this can happen if there is another hard fork of Online Bitcoin Exchange or any other leading Cryptocurrency. This can also lead to disinterest in the main currency by existing investors.