Jay’s Opinion #1 – SegWit2x, Bitcoin Cash, Bitcoin’s Future

Jay’s Opinion #1 – SegWit2x, Bitcoin Cash, Bitcoin’s Future

Bitcoins have gotten crazy recently. Let’s talk about them and what their future lies ahead, along with Bitcoin Cash and my opinions on this.

For a long time, I’ve held a lot of interest in the world of Bitcoin. It’s an extremely popular cryptocurrency that’s used all across the internet, whether it’s places like Valve’s ‘Steam’ Gaming Client, Microsoft, and especially known for being used in places like the Deep Web and Dark Web. It’s meant to be used as a means of transferring money from one anonymous address to another, breaking away from traditional banks entirely and is more focused on being a globalized peer-to-peer network that anyone can utilize.

I’ve been keeping my eye on Bitcoins for a while now, and I’ve got to talk about how I feel towards the recent events surrounding Bitcoin and where they’re heading, because, after a large number of reports coming in, it seems like everyone else is talking about what the future of Bitcoin holds for itself.

SUMMARIZING BITCOIN’S RECENT EVENTS

Bitcoin has remained at a, you could say, stable-ish level for several months, slowly rising in price, while also dropping hard occasionally only to return to where it was originally. Originally, Bitcoin was supposed to act as a true currency that could be used without worry. However, after recent events, that is definitely no longer the case with where the Bitcoin’s price is heading.

About a month ago (specifically November 12th), Bitcoin’s price dropped significantly to as low as around $6,000, if not lower. Three days before that, it was cruising at a little over $7,000 in value. It essentially lost 1/7 of its value in the span of three days, yet it came back up rapidly to an all-time high. What gives?

Well, it’s all down to an event that caused the drop was the cancellation of the SegWit2x fork, which was originally meant to split the chain of Bitcoin into something that seemed more beneficial towards keeping Bitcoin as a currency instead of something similar to investing in a stock or getting shares in a company. Due to disagreements within the community about what SegWit2x would do, it ended up being shut down and abandoned before it could officially begin. This ended up putting a lot of popularity and movement into a young hard fork of Bitcoin called “Bitcoin Cash (BCH)”, boosting that coin’s price up while the original Bitcoin drops significantly and rapidly.

For direct proof, take a look at the price charts for both Bitcoin and Bitcoin Cash in the Sources below. In the middle of October 2017, Bitcoin Cash was hovering at around $315 each while Bitcoin was keeping steady at around $5.5K after slowly and consistently creeping up in price. After checking on December 6th, Bitcoin Cash is at over $1,400 and Bitcoin is far past $12.5K, a record-breaking high for Bitcoin, and especially good for people who invested when it dropped to around $6,000 just three weeks back.

Now that the dust has settled over for most people, it’s easier to talk about the differences between Bitcoins and Bitcoin Cash. The main reason why people moved over to Bitcoin Cash is really from the fact that it had larger “blocks” which in turn had it act more like a currency over Bitcoin with its limited size blocks. Bitcoin Miners were also interested and partially moved from Bitcoin to Bitcoin Cash due to the different block sizes, which boosted Bitcoin Cash’s total processing power of mining, which in turn also helped raise BCH’s value, and boosted its momentum as a whole. It’s quite a cycle that occurred.

MY OPINION

Of course, I feel a little bad that this all happened. I’ll say now that I actually owned partial Bitcoin before this happened, and made the stupid mistake of cashing out when I thought things were going to get worse. I’d have over doubled my money (as of December 5th) if I didn’t cash out, but I think that right there is an issue of itself. The point of Bitcoin, at least what I thought it was, was that it was a convenient, simple, anonymous way to do transactions with money online. What it ended up becoming, in my eyes, is a stock to invest in, essentially. The value of it has skyrocketed so high and so quickly, and remains very unstable, that it no longer feels like a true currency that I’d put my money into and keep it there safely. I mean, the amount of Bitcoin that I end up buying will remain the same, but the value is so hard to estimate at this point that it no longer feels right to, at the very least, buy Bitcoin right now. If you’ve held Bitcoin or bought it over three weeks ago, great. Keep it in there unless it really shows a sudden decline. A lot of bad press surrounded Bitcoin and the large movement to Bitcoin Cash, yet Bitcoin ended up exploding in value when everything died down.

If you ended up moving your Bitcoin over to Bitcoin Cash, which I know some people did, I’d still suggest keeping an eye on any news that surrounds both Bitcoin and Bitcoin Cash, separately and together. It’s going to be very important to keep this in mind as either of these could go either way at any given time. Heck, if NASDAQ is planning to start “Bitcoin Futures” to determine where Bitcoin will go from here. That’s truly a serious report and shows where Bitcoin in general, as well as cryptocurrencies in general, are heading into.

Sources:

Please let me know if I was wrong on anything that I discussed above, and I will gladly change it with the provided source. Thanks for reading and let me know what I should showcase my opinion on next!

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