BITCOIN DIARY: What the fork just happened?
And the prophets examined this event and concluded that it was 'meh'
* Lance Boyle may or may not exist
And so it came to pass that on the appointed day, August 1, 2017, at 2.14, Eastern Standard Time, a new blockchain was set loose upon the world by rebellious miners.
And the new currency was named Bitcoin Cash and it was filled with the promise of greater functionality than Bitcoin from whose loins it had wriggled forth.
The prophets of doom and the prophets of profit had been warning the huddled masses of the hard fork, but when it came to pass, there was nary a movement of the needle of the markets with Bitcoin trading at a steady $2,706 or so, in line with trade prior to the annunciation.
And the prophets examined this event and concluded that it was "meh".
This from coindesk:
An effort to create an alternative version of the bitcoin blockchain is officially moving ahead.
After running into roadblocks this morning, miners were able to successfully create a block on a new blockchain, called Bitcoin Cash, at roughly 2.14pm ET today. The move effectively finds the miners breaking away from the main bitcoin network and forging ahead with a different technical roadmap.
The block in question was mined by mining firm ViaBTC, according to a Bitcoin Cash block explorer hosted by data provider BlockDozer. ViaBTC later acknowledged the finding on Twitter and WeChat.
A day later, Bitcoin Cash was trading at $219 with around $3m in volume since its launch.
That's like the loose change Elon Musk keeps in the glove box of his Tesla Model 3.
I completely understand that in a situation like this, you would like the comfort and reassurance offered by a graphic so I include the following courtesy of Plus 500:
It shows that Bitcoin is continuing on a slow and steady path post-fork and that the standard deviation is levelling out.
Of course, it's early days and the paltry $3m in trade in the new Bitcoin Cash might suddenly balloon, but that's unlikely as the majority of the Bitcoin mining community is sticking with the original plan.
This from the esteemed Wall Street Journal:
Bitcoin Cash, a new version of the digital currency created by one side in an industry rift, fell sharply in its first trading day Tuesday. If it wants to be bitcoin’s equal, it is about 10% of the way there.
Most digital-currency exchanges and services at this point aren’t supporting Bitcoin Cash. One exchange, China-based ViaBTC, has been allowing trading in the coin even before it went live. On that basis, Bitcoin Cash was trading Tuesday afternoon at about 9.8% of a bitcoin’s value, roughly in line with traders’ projections in the days leading up to the launch. At its intraday peak, it traded as high as 14% of bitcoin.
With the original bitcoin trading at around $2,750, Bitcoin Cash was worth around $270. One virtual-currency tracker, Coinmarket.com, showed Bitcoin Cash falling about 38% to $247 from a high of more than $400 in volatile trading.
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