Ethereum Hard Fork Stock splits are not uncommon. Usually undertaken when a company’s shares rise to an undesirable value that is too high—and therefore may dissuade smaller investors—stock splits are a great way to create hype around a company and also encourage investment. In cryptocurrencies, however, splits are entirely different.
Between the Bitcoin hard fork (the term used to describe a split in cryptocurrencies) and the Ethereum hard fork, we’ve seen two of the heaviest hitters on the market place fracture into entirely new coins, which only creates more volatility and presents more options to investors. Seeing as how the Ethereum (ETH) split occurred over a year ago, what can investors hope to learn about the ETH vs. BTC split? Where will that land the Bitcoin Cash price 2018?
While cryptocurrencies are notoriously hard to predict, we’re going to try to do just that in this piece as we look at the Ethereum hard fork and use that information to help us suss out what the still-fresh BTC split will mean down the line.
In the world of cryptocurrencies, however, the goal can often be loftier. For many of those who purchased coins, cryptocurrencies represent not just a way to make money, but the future of payment systems as we know them, not to mention a way to counter what these diehards often view as an overly powerful collection of central governments with the ability to have an outsized effect on traditional fiat currencies.
(Data source: “Bitcoin Cash,” CoinMarketCap, last accessed August 10, 2017)
What that translates into is that there are many coin owners who view their purchase as a philosophical stance and not a profit-based move, or at least, not an immediately profit-based decision. For investors, that can quickly turn dangerous.
In the case of Ethereum, it did for a good bit as the hard fork split, which resulted in the creation of Ethereum Classic (ETC), cost ETH a fair bit of goodwill and trust, hurting the value of ETH in the immediate aftermath.
While we will be using the ETH vs. ETC split to help inform our projections about the BCH price 2018, what we also need to do is consider the differences.
The first big difference is that ETH was still a relative new and untested commodity on the scene in July 2016 when the split occurred.
Now, ETH has the second-largest market cap at near $28.0 billion and rising. The coin is attempting to be a serious challenger to the biggest coin on the market, Bitcoin, and there are a great many reasons to be excited about the Ethereum price 2018.
So BCH may not be the right investment for most investors right now, in my opinion, but what about the Bitcoin Cash price 2018? Would that be a suitable time for investors to jump in on Bitcoin Cash?
That’s where the ETC comparison comes in handy. As we saw with Ethereum, ETC ended up mirroring its older sibling, gaining when it gained and falling when it fell. This was naturally good news for ETC investors, even if their gains weren’t as strong as ETH, because they still experienced massive upticks in value.
Which brings us to the BCH vs. BTC debate. The thing is, I believe that BCH will largely ape the BTC price chart moving forward, jumping when BTC jumps and crashing when BTC crashes.
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