As a digital agency in Bournemouth, we are always interested in what’s going on in the digital world, and recently some important events have occurred for Bitcoin.
What is Bitcoin?
Bitcoin, first introduced in 2009, is a cryptocurrency and digital payment system. It’s the first decentralised digital currency, due to its peer-to-peer system with transactions taking place directly between users. Recently (5th/6th August), Bitcoin’s value surged to $3,451.86 per coin, marking the first time the digital currency has ever had a value greater than $3,000.
What caused the increase?
On August 1st 2017, a group of Bitcoin miners forced a fork in the Bitcoin blockchain and created a new child currency of Bitcoin known as Bitcoin Cash. The motive for doing this is the new currency has upgraded consensus rules, potentially allowing it to grow more effectively. As Bitcoin Cash emerged from the same ledger as Bitcoin, Bitcoin owners were given an equal amount of Bitcoin Cash tokens after the split. Market watchers suggested that the introduction of Bitcoin Cash may have encouraged the surge in the original Bitcoin’s value, as many people have been selling their Bitcoin Cash token in order to buy more Bitcoin.
What should you do?
We’re no Bitcoin experts but our advice is to act carefully, not rush into any investments, and sit on the side-lines and watch what happens next. It is unclear what the future will hold for Bitcoin Cash, as analysts estimate its value dipping below $100 soon. Bitcoin Cash’s birth shows that markets can be easily manipulated, however if traders do not use and support the new cryptocurrency, it will lose value and may even result in losing all its worth according to some speculators.
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