Today, August 1st, 2017, the bitcoin network experienced a hard fork. This means that a portion of the Bitcoin community, particularly a large mining group, left the original Bitcoin blockchain and instead mine “Bitcoin Cash”, while the rest of the community continues to use the original blockchain.
Although there is a group of Bitcoiners want to abandon Bitcoin in favor of Bitcoin Cash, the price of bitcoin is showing no signs of concern amongst the market. As the fork approached, the price of bitcoin has only been going up. According to coinmarketcap.com, in the past 5 days the price of Bitcoin has risen from just above $2,400 and is now sitting at around $2,700 post-fork.
Bitcoin Cash on the other hand has been live for over 4 and a half hours at the time of writing this, and has only just able to mine a single block; making it 30 blocks behind bitcoin’s blockchain as of 3pm EST. This means that there haven’t been many new blocks mined on Bitcoin Cash since the hard fork. Meanwhile, the value of Bitcoin Cash (BCH) has been plummeting since its release, and is currently down over 24% at the time of writing. There are plenty of reasons why this is happening to BCH, among them are Bitcoin whales dumping their BCH, low hashing power, unadjusted difficulty, as well as lower than expected adoption from the community.
What does all of this mean for the cryptocurrency market in general?
Nobody can say for sure, however the market has been signaling confidence in bitcoin, and as of now is reacting well to the hard fork. One would expect Bitcoin to drop drastically in price as the fork approached and even more once the fork went live, however BCH has mined its first block more than 5 hours after going live as Bitcoin is more than 30 block ahead, the price of Bitcoin has remained stable, only dropping about 2% which is negligible considering the historic volatility of cryptocurrencies.
Overall, this “apocalyptic hard fork” is beginning to look like the launch of another alt-coin, only difference being that this one has the history of the Bitcoin blockchain before its launch.