Back in July I did an article on The Rise of Cryptocurrency. On the day I wrote the article, the price of a Bitcoin was USD 2,358.81. Today is Monday 13th November and the current price of Bitcoin is at USD 6,522.48 and this current price is down from last week’s peak of USD 7,886.24 when the Segwit2x fork was cancelled only a couple days away from the scheduled November 16th implementation date. Phew, so much information. Okay let me break it down.
What is a fork?
In the world of cryptocurrency software, a fork is a change to the software of the digital currency that creates two separate versions of the blockchain with a shared history. In October 2017 a fork split Bitcoin into Bitcoin and Bitcoin Gold. These changes are made to improve the protocols of the cryptocurrency software and network much like changes in protocol changes are made to internet protocols to improve web browsing.
Why the erratic price behavior?
There was a much anticipated and talked about Segwit2x fork that was to be live on November 16, 2017. However, 8 days before the planned fork, a u-turn happened, the announcement was made that the much debated and anticipated fork had been cancelled as there was no concensus among developers in the network. This sent the price skyrocketing to almost USD 8,000 before it fell all the way down to USD 5, 560 over the weekend. Much of this drop in price was actually caused by profit taking by market participants. Incase you were not aware, you can now trade cryptocurrencies on financial markets much like you would any other commodities, indices or forex. So when the Segwit2x fork did not happen, prices plummeted over the weekend as those in financial markets took profits. However, given that Bitcoin has been in existence for 8 years now and market participants have taken notice, my opinion is that the digital currency is here to stay. It is still in its infancy and we have not seen the highest value of Bitcoin yet. Besides BitCoin we have other heavyweights like Ethereum and LiteCoin also still in their infancy and gaining in momentum and price.
Why should you care?
It provides an opportunity for those who get in on it early enough, the chance to make fortunes. Remember the maximum Bitcoins that can ever be produced are 21 million. We are currently at 16.6 million Bitcoins in circulation. Not only that, there are roughly over 735 cryptocurrencies. Bitcoin is number one, in second place is Ethereum, then there is Bitcoin Cash currently in third place and there are others like Monero, LiteCoin etc. Cryptocurrencies are here to stay and are new disruptors to the old establishment of fiat currencies managed and run by central banks.
Remember cryptocurrencies are not regulated by central banks but by the networks of developers and communities producing the coin. You can join a community and own these valuable cryptos or you can trade them on the markets, or you can take it a step further and create your own coin; whichever tickles your fancy. The current market cap of the top five cryptocurrencies is as follows:
Coin Market Cap. In USD
Bitcoin $ 109 Billion
Ethereum $ 30 Billion
Bitcoin Cash $ 21 Billion
Ripple $ 7,7 Billion
LiteCoin $ 3,2 Billion
If this is not enough for you to get in on the cryptocurrency revolution then I do not know what is. Either way, fortunes are being made as we speak. Why miss out on this new digital revolution?