Bitcoin’s Cryptocurrency Rivals Multiply
Almost weekly we are seeing new iterations of Bitcoin, the biggest cryptocurrency, as disagreements over of its design persist and opportunities for making fast money prove hard to pass up.
The biggest offshoot, called Bitcoin Cash, emerged in August after a hard fork in the Bitcoin blockchain.
That spinoff valued at $18-B, was followed by a less successful fork to create Bitcoin Gold in October, and now several other planned splits are in the mill.
There’s Bitcoin Diamond, Bitcoin Silver, Bitcoin Unlimited and, in what looks like the latest proposal, Super Bitcoin.
The website advertising Super Bitcoin says the offshoot is backed by Chinese cryptocurrency entrepreneur Li Xiaolai.
It promises to MBGA or “make bitcoin great again” by, among other things, increasing the size of blocks on which transactions are processed, a move that would reduce confirmation times and fees, currently time consuming and expensive.
The proliferation of Bitcoin breakup plans is partly a result of the cryptocurrency’s decentralized design.
The software underpinning Bitcoin is open source, meaning anyone can simply copy it and make adjustments to form a new version of the coin if they have issues with the original.
There’s also a profit motive: if offshoots are successful, the creators can earn windfalls by “pre-mining” coins for themselves or foundations they control.
The Big Q for the crypto community. which includes a growing number of Wall Street banks and fund managers, is how fractured Bitcoin will become.
The popularity of Bitcoin Cash, along with talk of other offshoots, has fueled big price swings over the past 2 weeks as traders struggled to gauge which cryptocurrency will come out on Top.
Bitcoin, which marked record highs on 8 November and sank nearly 30% from its peak before recouping most all of its losses this week.
It trading at 7,919.9949 Vs USD now.
Despite the turbulence, Bitcoin has a commanding lead in the crypto league tables. Its $130-B market value is 4X+ larger than its closest competitors, which include “alt-coins” like ethereum and monero.
Bitcoin’s Top Tier status is far from guaranteed, given the ongoing feuds among its many stakeholders.
“The community is really divided on the technological direction and since bitcoin is such a decentralized network, there is really no method to come to a good consensus,” said the CEO at Cryptomover, a Hong Kong-based investment company.
He says Bitcoin Cash has the potential to eventually overtake the original, adding that multiple versions of the cryptocurrency could prove successful over the long term.
“We’re not Bitcoin maximalists who believe there is just 1 chain that rules them all,” he said. “We think there are multiple use cases.”
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