Coinbase Adding BCH
Bitcoin Cash has rallied based upon Coinbase adding BCH to its exchange. This is big news. Some people, especially those newer to crypto may be thinking whether BCH could ever be poised to replace bitcoin?
My answer to this question remains the same. Exchanges ultimately decide what is and is not bitcoin. Exchanges are the market places where the price of bitcoin is set, and they decide what is called bitcoin. Not only do they decide what is bitcoin, more importantly, they decide what currencies are the reserve currency for all crypto trading.
What is bitcoin? In some ways, bitcoin is the leading base-pair currency for all other cryptocurrency trading transactions. Certainly bitcoin could be replaced with something like USDT or ETH for a base trading pair. Maybe one day STEEM!?
This is important to understand because even if another coin surpassed bitcoin in price, it is not bitcoin unless the exchanges are willing to make the swap. What gives BTC its value is that cryptos are traded against it. Even if another coin comes along with a higher valuation, if it does not change the functionality of BTC in the marketplace, then in effect, BTC is still BTC.
What do you think?
B2X Futures Soaring
When I passed on the news last night for B2X forking next week (Dec. 28th), I was unsure how big of a deal it was because the price had not yet gone up.
Over the night, B2X futures have gone up a few hundred percent. BTC is now worth $746 more than it was before this announcement. But we see now the higher value of BTC mitigates the appeal of this somewhat since this is only 4% of the value of BTC.
It will be interesting to see if Segwit2X manages to cycle through the news cycles and create more hype.
Would be curious on your thoughts of how big of a deal B2X fork is for the price of BTC?