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Bitcoin Is Rallying As ‘Fork’-Day Arrives

With only a few hours remaining before the widely-expected Bitcoin network’s SegWit activation and its anticipated fork, there is a bifurcation in the crytpo-world with Bitcoin higher (up 5%) and the rest of the major virtual currencies lower (down 4%). For now, crypto markets seem relatively calm and stable ahead of what was feared to be an extreme volatility moment.

Spot the odd one out…

As CoinTelegraph reports, after falling to below $1,800 in the middle of July, Bitcoin price has recovered to be trading around $2,700 as at the time of writing.

But more significant is the overall market behavior which is expressing relative calmness as price movement are less volatile than is usually experienced in seasons of anticipation.

Iqbal Gandham, UK Managing Director at eToro, on the possible Bitcoin split, comments:

“The surge in pricing we’ve seen since the start of this year has thrown digital cryptocurrencies into the public eye. Bitcoin in particular has been making headlines, as the possibility of it one day becoming a real world currency used throughout the world looks increasingly likely, even if this is a long way off.

 

But Bitcoin’s sharp increase in popularity has also risked its demise. Demand for Bitcoin has been so high in recent months, that those creating the cryptocurrency can’t keep up, slowing transactions. For Bitcoin to continue to scale and have the potential to become a globally used currency, this slowdown in transactions has to be addressed.

 

“Although the Bitcoin community has now agreed on a process for speeding up transactions – the mystic sounding Segwit – not everyone is happy. Some in the community are threatening a split to create an entirely new cryptocurrency created using a different process, called Bitcoin Cash. Nobody can be sure how this is going to play out over the short term.

 

”Over the long term, regardless of the outcome, it’s clear that blockchain technology can completely remake the world of money, and that in the future, a blockchain powered cryptocurrency, like Bitcoin, will be used by billions of people. This makes for a huge investment opportunity, but naturally one that comes with a few bumps in the road.”

CEO of Never Stop Marketing, Jeremy Epstein thinks that the current market behavior is as a result of the growing confidence of Bitcoiners about the technology as a long term phenomenon. Epstein tells Cointelegraph:

“I think that the reason for a relatively stable market at this time is the fact that more and more people are getting comfortable with the idea of Bitcoin over the long-term.

 

They realize that this is a short-term disruption and it is a feature, not a bug, of the way that the system operates. As a result, people are playing patience and they recognize that the age of decentralization is truly upon us so they can tolerate some of these challenges in the near term.”

CEO of Netcoins, Michael Vogel believes that the relative calm being experienced in the industry ahead of a major decision is due to the outlook of Bitcoin users. Vogel also notes that the actions of the exchanges may be significant in influencing how Bitcoiners perceive the process. He says:

SegWit activation is largely viewed as positive news for Bitcoin. And although I believe the Bitcoin Cash altcoin fork will be a footnote in the long run, there's less worry among the customers that I've been speaking with.

 

Even if there is a negative effect on BTC price after a fork, one might assume there would be a positive effect on the BCC price (and vice versa). That being said, with most exchanges choosing not to carry BCC, that has given many Bitcoin users the clarity that they've been seeking about the future of Bitcoin.”

As CoinTelegraph conlcudes, Bitcoin as a decentralized technology will undergo several stages of development. Having survived the initial setbacks of its early days, it has grown significantly over the last few years both in volume and market capitalization. With the increasing level of awareness and understanding that is prevalent in the industry, it is safe to assume that in the long term Bitcoin will form a significant part of human existence.