Bet you did not know this
Trading in cryptocurrency is like gambling because you never know what the outcome will be. You are completely reliant on the other person, which is why the market is highly volatile, making it difficult to predict the price of a given asset, often investors find themselves getting help from companies like SoFi in order to make the best decisions when it comes to bitcoin investing. It is also possible to trade without knowledge of the currency or what the specific blockchain is, but you would need to rely on the market to determine which of the available coins or tokens are more valuable.
Ethereum is the main trading token of Ethereum (ETH), a blockchain platform which allows for decentralised applications (dApps) to be built. It currently has a market cap of over $1bn. Ethereum also has a lot of innovation in its core which has led to it becoming the currency of choice for new projects on the blockchain. It is a great development platform that has seen the introduction of smart contracts that can help organisations operate more efficiently.
Ethereum is the second biggest cryptocurrency by market cap. It has seen strong growth recently in 2016, but this growth has been much stronger in 2017 so far. Bitcoin Bitcoin is the world’s most famous cryptocurrency, and is accepted as payment for products and services across the globe. The currency was launched in 2009 by a group of programmers known as the ‘Satoshi Nakamoto’ who left the project in 2010. It has grown exponentially in value, and its value at time of writing is over $6,000. Ethereum Ethereum has more in common with Bitcoin than many people realise. As the name suggests, it is a digital currency created in the same way as Bitcoin, with the main difference being that it runs smart contracts and cannot be mined. The value of ether has seen a drop since its 2014 peak, but is now making a comeback. Bitcoin Cash Bitcoin Cash is the result of a dispute between two developers known as Bitcoin ‘Classic’ and Bitcoin ‘SegWit2x’ over the scaling of Bitcoin. Classic proponents believe the Bitcoin network is too large and could cause it to split into two chains, but SegWit2x proponents do not believe it will happen, even if it does eventually. This dispute led to Bitcoin Cash and some developers (including Eric Lombrozo of Coinbase and Evan Duffield of Bitcoin Magazine) have called it a’spoiler’ and the ‘crypto-scam’. Despite its’spoilers’ reputation, Bitcoin Cash has seen considerable growth and is now the second largest cryptocurrency in the world, only trailing behind Bitcoin.
A large number of Bitcoin businesses support Bitcoin Cash (including the Coinbase wallet), and some businesses that were previously selling Bitcoin cash in order to take advantage of Bitcoin’s price advantage have also been seen re-doubling down on Bitcoin. As such, the Bitcoin Cash price is on the rise again this year as some Bitcoin businesses see the opportunity to profit from the increase in demand that Bitcoin Cash has seen over the past year.
This could have massive consequences for Bitcoin exchanges such as Coinbase and Bitfinex. While the majority of Bitcoin exchanges are BTC and do not hold Bitcoin Cash, a sizeable portion of them hold Bitcoin cash which will cause some major headaches for these companies moving forward. Some of these businesses are currently thinking about selling all of their Bitcoin holdings as Bitcoin Cash becomes more popular. If Bitcoin exchanges do not make sure they don’t end up holding Bitcoin Cash, these businesses could potentially lose millions of dollars in revenue if their investors decide to move away from BTC.