Another possible split is that bitcoin is weighing on the value of the hundreds of other digital tokens that have been issued this year as the price of the biggest cryptocurrency soars. This uncertainty is surrounding the market regarding bitcoin value.
Stan Miroshnik, chief executive of the Element Group, which helps startups with initial coin offerings says that “Everyone always thinks about going to bitcoin as a conservative position.”
Investors are playing it safe and shifting funds from other digital currencies into bitcoin because it typically offers greater liquidity in times of uncertainty. Bitcoin’s lurking network is condemned to go through a major software upgrade in November to raise transaction speed and reduce costs, it could also cause disturbances.
A futures market for SegWit2x is already being quoted on Coinmarketcap.com, showing a price of $992 at the time of writing. This could lead to other issues, such as slow transaction times.
“The markets seem to think that the fork will go smoothly,” said Kyle Samani, managing partner at crypto hedge fund Multicoin Capital. “I do not believe that it will. If things go extra poorly, it could tank the whole market, or we could see a major flight to bitcoin/ether.” Ether is the second-largest cryptocurrency in market value after bitcoin.
David Mondrus, founder and chief executive of Trive.news, takes a similar view, seeing the forks as underlining the robustness of the software and the network. “BTC’s strength is that it is open source. That means anyone can fork any time. As long as there’s demand, there will be forks. When the market realises a fork doesn’t have significant value differential, then the market will stop accepting it,” he said.
Bitcoin continued its rise, while holders also got bitcoin gold, which is currently worth about $122. Bitcoin’s price has more than doubled, to $5,846, since the time of the first split.
“ICO tokens are not the hot story at the moment, but could return to the forefront of people’s imaginations as the bitcoin fever trade unwinds and a search for yield returns in other markets,” said Charles Hayter, co-founder of market tracker CryptoCompare.