The bitcoin fork finally happened on August 1, 2017. A piece of blockchain in the most popular cryptocurrency in the world has separated from the rest of the pack due to the users not being on the same page about some technical issues.
The deserting blockchain was named Bitcoin Cash and since the fork, it has had a relatively strong start with the price hovering around $727 on day one. Despite the “hard fork” as it happened, it wasn’t the end of the bitcoin. In fact, its price is now close to $420.
Let it be known that even though many predicted it would cause irreparable damage to the cryptocurrency, it never even came close.
The reason behind it is simple, cryptocurrencies are becoming more and more popular to the people around the world and the trust into a new monetary systems for a sustainable democracy raises.
Thousands of American investors as young as 20 years old are investing their hard-earned money in cryptocurrencies despite the high risks.
Currently, platforms like Bitcoin IRA enables their investors the tax advantages of an individual retirement account (IRA) and the return of a high-risk, high-reward alternative asset class.
#Why?
There is a lot that we can learn from nature, and one important lesson is that diverse systems have greater strength and resilience.
When conditions change, various components within a diverse system will step in to pick up where others fail.
There is a reason why the Chinese government is investing in blockchain to eventually come up with a national cryptocurrency.
There is a reason why Crypto Debit Cards are the talk of the town that can be used just like a regular debit card and even get cash as well.
There is no other industry in deeper trouble than banking.
The sector has performed poorly since like always and you must have heard the latest news about the government stepping in to “help” and help usually means bailouts and austerity.
Some struggling banks around the European Union have been called to stop allowing withdrawals for 5-20 days. While it is not exactly the 1929 or 2008 crisis level, it is pretty gloomy indeed for the industry.
But, what was the impact of the Bitcoin fork on people moving away from flat currencies? The confidence in cryptocurrencies is directly related to the price of the currency and it experienced a minor drop and now it is looking as robust as ever.
Perhaps most normal Bitcoin users haven’t even realised that the fork actually split the coin into two or that it is not a good precedent for the blockchain-based currency.
So, the price of the Bitcoin is stable and so is the rest of the pack including Ethereum, Litecoin, Monero etc.
After fork happened and many Bitcoin stakeholders are rejecting the new Bitcoin Cash for a variety of reasons, but, it didn’t affect the Bitcoin throne yet.
The conventional banking system will have a hard time in the future. The sooner they embrace the future of the blockchain for themselves the sooner they can compete well again!
Sources :
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