If you had Bitcoin, now you have Bitcoin Cash too. Yay... FREE Money... but at what cost? Could the creation of Bitcoin Cash could change the Crypto world forever?
Here's the thing, just two weeks ago, there wasn't even a plan for Bitcoin Cash, but in two weeks some very smart people created a new coin and split from Bitcoin and overnight gained a market cap of over $7 BILLION. Out of thin air...
If BCC can hold it's value then what is really driving the market? It doesn't have any real use yet and it hasn't done anything, but yet it is the 3 largest coin as of publishing this article. My grandmother always told me if something seems too good to be true, then it probably is.
If coins can just split and make the owners and investors more money, we might see a lot more coins deciding to fork like Bitcoin and Ethereum.
The problem is, it causes so much confusion and so much doubt. There is already a steep enough learning curve to get into crypto, adding confusion and tons of spin-off coins will really muddle the market. People are jumping in to crypto and have been all summer because they think they will get rich. When people start investing because they think they can get free money, that is when things go horribly bad.
With the sudden rise of Bitcoin Cash one of two things will happen.
1. The people who are in the know and holding tons of Bitcoin Cash will dump it and make it a short-lived coin that made some people a lot of money in a very short amount of time.
2. It will survive, have it's ups and downs and eventually find it's niche in the market.
But what will happen in a couple of years when Bitcoin needs to expand again? Will it happen again? What are the longterm effects of creating all of these forked coins? Is there any real value for the market? Of course there is value in it for the people creating money out of thin air, but is it really good for the crypto world in the long run. I don't think so.
(all gifs from www.giphy.com)
What are your thoughts? I would love to know. Thanks for reading.
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