I am sure that mostly everybody understand what is causing the current BITCOIN CASH bull run up these days but, if you are not aware or you are just a newcomer at the cryptosphere let me tell you that this rise is due to the recent announcements that have been done in major exchanges as BINANCE or COINBASE, telling that they will support the BITCOIN CASH hardfork, which is planned to happen around November 15th.
What does it means?
Well, it means that BITCOIN CASH algorithm is going to be upgraded on that date and to do so, a great majority of miners have to support the algorithm upgrade but...in this case seems that there is not a great consensus and thus the most likely to happen right now is that a proportion of the total miners will support the old algorithm, and that means they will continue mining the current algorithm, and another somehow equal proportion of miners will support the new upgrade proposed and so they will mine the new algorithm.
So, in a particular moment, 4:40:00 PM (UTC), there will be a split of the original BCH Blockchain, two blockchains with similar history but deviating each other form then on.
As a consequence, if you would have BITCOIN CASH in any of the exchanges (COINBASE, BINANCE...) which have announced support to the hardfork, you would be "rewarded" with an additional crypto as a result of it.
"X" amount of BCH = "X" amount of BCH1 + "X" amount of BCH2
Till here everything seems very logical and reasonable. In short, BITCOIN CASH is rising because is providing an opportunity to double the amount of tokens.
Please, bear on mind that doubling tokens does not mean doubling the equivalent "money" since no one knows the price of the new Crypto but we are sure there will be the same quantity of tokens as you have it as BCH at the time of the fork.
The famous "BUY the rumour SELL the new".
As you can see, this statement is fully applicable here. People is investing hard because there is a serious proposal, supported by major exchanges, on having chances to be "rewarded".
But my experience tells me that the pump may dump before the new will become a reality and so I think is fair to prevent about.
I do not know how high is going to reach BCH in this bull run, take the image below as a pure example and possibly very far from the expected top, however it would not be very weird to see a DUMP just a few hours or maybe a days before the HARDFORK milestone.
So, invest if you want but be cautious because the market still is in the consolidation if not in the corrective trend...
...nonetheless, enjoy the ride!
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently.
Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
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by toofasteddie
I'm new to it all so I'm learning as I go. I managed to buy into bcc just before it went up so I can sell any time now and make a profit, but am thinking to hold on for a bit and see how high it goes
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that's a good strategy
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Thanks a lot for this article. Resteemed!
It is, as far as I know, the only article telling us what could really happen :)
So, you are saying, that there is a high probability that a split will occur? I've read the official Binance statement and there is no word about supporting the other currency after the fork. All they say is that they will support the (probably new) code.
I guess it is safe to deposit now owned BCH to Binance and see what will happen. No, I won't be buying any new BCH :)
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Dear friend, usually, when an exchange says "support the hardfork", means that the exchange will support the consequences of the hardfork, so, if there is a split or a multi-split of the code they will give support.
You are right that the statement of Binance is not telling that explicitly but the only meaning, IMO, of the word "supporting" is that.
COINBASE said the same statement giving more details (https://support.coinbase.com/customer/portal/articles/2959951)
Read the last paragraph but essentially they said:
In the unlikely event that multiple viable chains persist after the fork, Coinbase will ensure that customers have access to their funds on each chain.
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OK, and I understand.
What I am trying to say is, that they don't guarantee that they will support both chains.
OK, I'll deposit my meager BCH stash to Binance :)
Hm ... on second thought. I have a Coinbase account too. Let's compare the fees of these two exchanges :)
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If history is any guide, we should see a major dump 2-4 days prior to the fork. Nice explanation @toofasteddie.
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Yeah...very likely...I’m sure most of the exchanges will not allow to do anything with their BCH wallets...as maintenance 😂
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Haha...wouldn’t surprise me
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thanks for the good explanation!
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