Bitcoin is software, and software has upgrades. Cryptocurrency projects call upgrades forks. Bitcoin is decentralized with voluntary development so it is hard to agree how to fork the software. As a result, every so often there is irreconcilable differences that occur between developers. When this happens, a small group of developers break from the main group (Core ), branch the code, and change the rules of Bitcoin to their liking.
We call this a contentious hard fork. When one occurs, it results in a temporary crisis in the Bitcoin ecosystem. All the of the business stake holders such as exchanges, ATMs, Wallets, and points of sale have to upgrade their own software to handle the new coin that splits. Holders/investors in Bitcoin are happy deal with the crisis because when the dust settles they own an equal amount of the new coin as they owned at the time of the split in Bitcoin.
In Bitcoin there are three versions that have branched off from the main blockchain that you need to be aware of as an investor. When I say ‘main blockchain’ I mean BTC Bitcoin aka real Bitcoin.
The break down looks like this:
Bitcoin BTC – The one and only real original Bitcoin started in 2009. As of 11/6/2017 is trading @ $7300us/BTC https://coinmarketcap.com/currencies/bitcoin/
Bitcoin Cash BCH– Forked off of Bitcoin in August 2017 because they wanted an 8mb block size that the rest of the developers did not agree with. It has higher inflation and is now one major release behind Bitcoin. Under current load it is confirming transitions faster than Bitcoin. As of 11/6/2017 is trading @ $940US/BCH https://coinmarketcap.com/currencies/bitcoin-cash/
Bitcoin Gold BTG – Forked off of Bitcoin in October 2017 because the developers wanted to change the Hashing algorithm to resist ASIC mining. This coin has marketed the block in which the developers intend to split BUT has not delivered working code and started the new branch yet. As a result no one has the coin to trade yet. As of 11/6/2017 the futures market for this coin is trading @ $162US/BTG https://coinmarketcap.com/currencies/bitcoin-gold/
SegWit2x B2X – DOA
Overall my advice is to research everything and don’t invest in what you don’t understand. I have left out as much of the politics around these forks intentionally. There is a lot of misinformation around this stuff. Ask me questions I will be happy to give you my opinions!