Bitcoin prices depend on the Hard Forks?
Nov 05, 2017 Posted / 5641 Views
Bitcoin prices must be going through the phase of all time high, but the words from the Bitcoin experts say that it might not be the favorable time to invest in Bitcoin. Owing to the Hard fork, the split has caused ripples in the mind of Bitcoin investors. By now, investors who used to invest in the cryptocurrency without any reluctance, are presently on the horns of the dilemma. This dilemma has been provoked as a result of the Hard Fork which has given birth another version of Bitcoin, which empowers the use of GPU mining. Bitcoin Gold has given a sense for the miners to mine Bitcoin using GPU mining has led to the shift of power from the centralized mining power which was in the hands of few miners located in China to other miners, thus giving a decentralized effect, by which the hash power can be redistributed away from corporate operations.
The Bitcoin Gold project will focus to split the network so they can produce an Application Specific Integrated Circuit (aka ASIC) ‘resistant’ version of bitcoin. The prime reason they are forking the network is for the reason that the team thinks ASIC mining is too centralized, thus BTG developers plan to make bitcoin mineable using Graphic Processing Units (GPU) and by changing the original protocol’s consensus to an algorithm called Equihash. The network itself won’t be live until November 1.
When the news of the hard fork went viral, it impacted everyone's mind with the question of the after-effects and also the effects during the fork.The prices of Bitcoin do not entirely depend upon the fork process, but it certainly creates an environment ambiguity. It leads the investors and the entire crypto market to an obscure and debatable atmosphere.Everyone’s eye right now focused on the fork, which may even hike the Bitcoin price or plunge it. The fork which happened in August paved a way to Bitcoin Cash which has given rise to the debate for the better Bitcoin version, and BTG is focused on mining. Mining is the process which generates new coins in the market. If BTG becomes successful and more coins are mined then the prices of BTG might increase, which will affect the Bitcoin Core’s prices surely. It would be an injustice to declare that bitcoin prices entirely depend on the forks because apart from forks, the regulations, supply, and demand are the major elements which contribute to the hike or fall in the prices. If the fork affects these factors, then we can surely say that Bitcoin prices depend on the fork. But, what we have noticed in August fork that Bitcoin was unphased by the fork, there was just a little fluctuation, and later a huge rise was evident in Bitcoin prices.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.