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Did Bitcoin Cash’s Fork Cause Bitcoin to Go Bust?

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  • Darryn Pollock
    ⭐ Features

    The timing of Bitcoin’s sudden collapse to a new year low is interesting as it lines up well with Bitcoin Cash’s hard fork — is there a link?

Did Bitcoin Cash’s Fork Cause Bitcoin to Go Bust?
Cover image via u.today
Contents

After weeks and weeks of incredible stability, Bitcoin and the rest of the cryptocurrency market suddenly fell dramatically with the major cryptocurrency falling to a new yearly low of just over $5,300. As is often the case with Bitcoin, its movements are often preceded by some sort of happening in the news, but there was no real catalyst for this fall.

However, its timing does raise a few eyebrows as the decline happened just before the hard fork of rival cryptocurrency Bitcoin Cash. BCH’s recent fork has been fraught with its own controversies as two different sides battle it out for supremacy.

Several analysts believe that the fear and uncertainty surrounding the BCH hard fork contributed to the over $1,000 fall in Bitcoin. Craig Wright and Roger Ver, both major proponents of Bitcoin cash, have begun advocating for two different versions of the digital currency.

Prior to the hard fork and the fall in the markets, there was significant growth for BCH as people flocked to get a free drop of equal measure of the new coin from the fork. However, even that growth has fallen back following the ongoing war between Bitcoin Cash ABC and Satoshi’s Vision.

Where is Bitcoin Cash heading?

Now that there has been a fork in Bitcoin Cash, one needs to see what the effect will be going further, especially seeing as many are pointing to its first major effect being a big drop in the cryptocurrency market.

Mati Greenspan, senior market analyst at social trading platform eToro, believes that with the strong-willed heads on each side of the BCH hard fork, it is likely there will be two versions.

"The end result will most likely be a split in the network resulting in two different versions of Bitcoin Cash when both upgrades go into effect," Greenspan told Business Insider.

“There is a tremendous amount of FUD surrounding the Bitcoin Cash hard fork," added Joshua Frank, co-founder of cryptocurrency analytics platform TheTIE.io. "It seems like there is a lot of confusion in the market as to what is driving price and who will emerge as the winner in the BCHABC vs. BCHSV fight."

There is a brewing competition for hashpower between the two sides currently, and this war has spilled out onto Twitter.

Further impact

While it can still be debated if the hard fork was the catalyst for the collapse, what is clear is that as long as this hash war rages on and there is this fear and uncertainty in the market, the outlook won’t be good.

“We have seen this FUD and confusion in Twitter conversations. This is reflected by the fact that Bitcoin Cash has had sentiment volatility three times higher than any other major cryptocurrency over the last 24 hours and BCH’s tweet volume is 217% higher than its 20 day moving average,” Frank added.

“With the uncertainty expressed by crypto traders on Twitter, both the short and long-term sentiment of Bitcoin Cash remain negative. It will be interesting to see how the sentiment of BCHABC vs. BCHSV as well as miner adoption play out over the next 48 hours. We anticipate this having a strong impact on future price movement.”

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.

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XRP Liquidity Index Surges Past 9 Bln, Leaving Previous All-Time High Behind

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  • Yuri Molchan
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    The Liquidity Index for XRP paired with MXN reaches another all-time high of 9 mln, taking the XRP adoption in this sector to a new level

The XRP liquidity index on Mexican exchange Bitso exceeds 9 bln
Cover image via 123rf.com
Contents

The Ripple-invested Mexican Bitso exchange is a partner of Ripple and MoneyGram in the Mexican On-Demand Liquidity corridor launched this year. Bitso is the largest Mexican exchange and its participation in the Ripple and MoneyGram’s project has been successful.

The Liquidity Index for XRP in Mexico adds another million

The Liquidity Index for the XRP/MXN pair is growing fast, leaving behind one all-time high after another.

Today, on December 14, this index has taken a new level and got over the 9-mln mark with the daily progress being 92 percent.

The highest liquidity mark achieved previously was slightly under 8,568,000.

Another active ODL corridor leads to the Philippines through the local Coin.Ph exchange and its liquidity index has also risen for the first time recently.

XRP gets mentioned by the US government

As reported by U.Today, the US governmental agency, the Consumer Financial Protection Bureau (CFPB), has for the first time mentioned XRP in its document, describing the asset as a reliable remittance method which makes the process much faster and cheaper for companies that have a limit on conducting money wires each year.

The document called Ripple and XRP a safe harbor. It also called Ripple one of disruptors of the remittance industry, as well as the new SWIFT’s GPI system, a rival of Ripple.

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Large XRP transactions keep pestering the community

Recently, a large XRP transaction was spotted by the Whale Alert Twitter account when a whopping 150 mln XRP was sent from one anonymous account to another.

Many in the XRP community often criticize those who do them, with Ripple getting the largest portion of criticism, when every month it releases 1 bln XRP from its escrow account. The community believes that these dumps keep the coin’s price low.

There may be a grain of truth in this, since the XRP price has been unable to cross the $0.30 threshold for a long time and recently, after dropping below $0.22, it has been floating in the $0,21 area.

Even the much-expected SWELL conference, annually conducted by Ripple, did not push the XRP price to the North, breaking expectations of many investors.

XRP price CMC
Image via CoinMarketCap

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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