Everzwijn since the Bitcoin Contant hard fork wasgoed announced, many people have viewed its token spil “free money.” While it is true thesis fresh tokens will be issued to users at no extra cost, they are most certainly not free money. Ter fact, many people feel Bitcoin Contant will take away some of Bitcoin’s value, just spil Ethereum Classic did to Ethereum. Albeit the value of BCH has yet to be officially determined, it is not free money ter the way most envision it.
There Is No Free Money te Bitcoin
The fact that every holder of Bitcoin is entitled to his or hier share of Bitcoin Contant tokens does not make it free money. BCH tokens will be issued at a 1:1 rate to Bitcoin. If you own 100 Bitcoin, you will receive 100 Bitcoin Contant. Those fresh tokens can then be sold on supporting exchanges, either against Bitcoin or fiat currencies. However, the value of thesis tokens may be effectively subtracted from the Bitcoin price at that time.
Let’s waterput this into numbers for a minute. One Bitcoin Contant is presently valued at around US$400. Thesis tokens do not exist presently, and IOU values always betray actual prices until the tokens are available ter an official capacity. However, assuming they retain their US$400 value when the tokens are live, that means that value may be deducted from the Bitcoin price at that uur.
If one Bitcoin is worth US$Two,800 by the time the split happens, and BCH is worth US$400, it is not unlikely Bitcoin would druppel to US$Two,400 on that day. The value for BCC has to come from somewhere, and deducting it from the regular Bitcoin price would seem the most logical course of act. With two contesting forks , the value of the Bitcoin network – the market cap, te this case – will be distributed overheen the two blockchains. The actual values of both currencies will fluctuate intensely overheen the very first few days following August 1st.
It is unlikely to tell how many people will be ditching Bitcoin te favor of Bitcoin Contant. Hashrate is growing spil wij speak, yet it seems the altcoin will still be a very minor fork for the time being. It is identically possible users will support both Bitcoin and Bitcoin Specie at the very same time. There is no real reason to defect from one chain to the other, spil one can lightly support both. There will be users who ditch one chain ter favor of the other, albeit it is too early to tell how things will evolve.
All of this hinges on whether or not Bitcoin and Bitcoin Specie will respect Metcalfe’s Law . Cryptocurrency is an interesting market and predicting the future is and will remain unlikely. There is no ensure Bitcoin will lose or build up value when the hard fork occurs, spil it is all guesswork at this point te time. The value of Bitcoin Contant will have to come from somewhere, however. There will most likely be some influence on the Bitcoin price, yet it remains to be seen what the repercussions will be.
Free money does not exist te Bitcoin. Even if Bitcoin were to lower US$50 ter value and BCC wasgoed worth the same amount, there wasgoed no free money to start with. It just meant the existing value got shifted around a bit. Things will not be spil cut-and-dry, tho’, spil the value from BCH will most likely cause big losses to Bitcoin te one way or another. This assumes, of course, that Bitcoin Specie tucks around for some time, which may not be the case. Free money does not exist, even tho’ everyone is entitled to the upcoming “airdrop.”