Bitcoin Split

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gnome
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Bitcoin Split

Post by gnome » Wed Aug 02, 2017 12:40 am

What's going on with bitcoin...

CNET: Bitcoin Cash Splits In Two In Blockchain Feud

Can someone who understands this better comment on the implications?
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Re: Bitcoin Split

Post by Mentat » Wed Aug 02, 2017 12:47 am

It means the bitcoin just went from being worth 1 of itself, to just half of itself.

Although its performance problems haven't exactly been a secret.
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Re: Bitcoin Split

Post by Anaxagoras » Wed Aug 02, 2017 1:30 am

Currently worth $2,700 according to preev

http://preev.com

I personally take no position because I don't understand it. I suspect a bubble. But I have no idea how long the bubble will last. I think the is now about 10 times what it was like a year ago.
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Re: Bitcoin Split

Post by Anaxagoras » Wed Aug 02, 2017 7:25 am

Bitcoin’s New Currency Trades Above $200 on First Day
Bitcoin, the world's most famous digital currency, split in two on Tuesday. So now there are two versions: The original one and a new type of online money called Bitcoin Cash, which is now being bought and sold at online exchanges.

The new currency was trading at about $215 on Tuesday, and, in what might come as a surprise, its arrival has not undercut the value of the original version. As of mid-afternoon, the price of bitcoin proper was around $2,750—not far below its all-time high of just above $3,000.
The above chat also shows, on the right hand side, the value of Bitcoin Cash in relation to bitcoin. So far, the trades indicate the new currency is worth about 7% to 10% of the old one.

If Bitcoin Cash continues to trade at any significant value, it could create enormous pressure for the likes of Coinbase, which is the most popular digital currency exchange, to distribute the new currency to its customers.

As it stands, Coinbase is standing by its controversial decision of last week not to support Bitcoin Cash. This means many bitcoin owners using Coinbase, all of are entitled to receive Bitcoin Cash at a one-to-one ratio, are seeing their new "Cash" sit in a sort of limbo.

One reason for this is Coinbase and others dislike the idea of Bitcoin Cash because it relies on a so-called "fork" of the software which runs the bitcoin blockchain, and on which all transactions are recorded.

The creation of multiple forks could undermine the network effects that help support the popularity of bitcoin. A source close to Coinbase, who asked to speak anonymously, also told Fortune that a new currency like Bitcoin Cash is akin to a new product, and it can be time-consuming and expensive to create secure infrastructure to trade it.

The Bitcoin Cash fork came about after a group of miners, who are responsible for recording bitcoin transaction records, decided to implement a new version of the software that governs the bitcoin blockchain.
Hmm, well if you lose 90% of the value in your bitcoins by using Bitcoin Cash, why would you do it? Then again, I still think the original is overvalued, but there really is no objectively "correct" value, is there? That's part of the reason why I don't trust it. There is no objective way to determine how much a bitcoin should be worth. It all just depends on what "the market" thinks it's worth at any given point in time, and that fluctuates wildly.
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Re: Bitcoin Split

Post by Rob Lister » Wed Aug 02, 2017 12:57 pm

I honestly can't wrap my wee mind around this split. In order to do so I'd have to re-learn how bitcoin works. That was a task that took me many hours years ago. But this fork HAD to happen because bitcoin transactions are taking hours to validate; the blockchain is simply not robust enough to handle them. Best I can figure is that those opting to use Bitcoin Cash will keep two sets of ledgers. And then it gets too fuzzy for me.

As to the value? One can't say it is over or under valued. It is always perfectly valued. :)

It might be worth rereading the original topic on this forum
viewtopic.php?f=5&t=30916&p=582812&hili ... in#p582812

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Re: Bitcoin Split

Post by Anaxagoras » Wed Aug 02, 2017 5:32 pm

Rob Lister wrote: As to the value? One can't say it is over or under valued. It is always perfectly valued. :)
Let me try to articulate what I was trying to say better.

There doesn't seem to be an objective way to predict what the price will be in the future.
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Re: Bitcoin Split

Post by Rob Lister » Wed Aug 02, 2017 5:33 pm

Anaxagoras wrote:
Rob Lister wrote: As to the value? One can't say it is over or under valued. It is always perfectly valued. :)
Let me try to articulate what I was trying to say better.

There doesn't seem to be an objective way to predict what the price will be in the future.
The same can be said with anything. If you could, you'd make billions. But the market [for that anything] would adjust.

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Re: Bitcoin Split

Post by Anaxagoras » Wed Aug 09, 2017 11:13 pm

Seems like bitcoin cash is not being embraced. Meanwhile bitcoin proper is hitting new highs. Over $3,200 last time I checked.

https://www.forbes.com/sites/pamelaambl ... d2249a1365
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