Thursday was a volatile day on the cryptocurrency markets with Bitcoin Cash forking into two different currencies, BCHSV and BCHABC creating considerable hash wars which are ongoing.
One worrying aspect of this fork is that some wallets, particularly the Bitcoin.com wallet saw its BCH value lower considerably. The average price on this wallet was around $360 on Friday morning, in contrast with the total price of $446 on eToro although admittedly, trading was frozen on that platform.
In the meantime, Bitcoin has hit another bottom and exchange volume spiked by 80%. Why is this happening? Are we going deeper into this bear market? What does this mean for the future of crypto? I spoke to a few luminaries from the crypto space to find out more.
Danny Kim, Head of Growth at SFOX, a dealer for institutional cryptocurrency trades said that volatility ultimately boils down to the basic economic forces of supply, demand, and uncertainty.
“Uncertainty is what’s driving volume and volatility this time around, just as it did earlier this year with the Aug ’17 BTC fork and the Dec ’17 launch of BTC futures. This rampant volatility validates that there’s still a lot of money behind crypto and that trading infrastructures have improved to handle more flow; we probably won’t see that volume slowing down until the BCH hashwar settles.”
Josh Fraser, co-founder of Origin Protocol, a platform for decentralized sharing economy marketplaces observed that the best path forward for blockchain is to stop focusing on market swings and focus on building great technology.
“We’re bullish on both Bitcoin and Ethereum and think the market will recover before the end of the year, but we’re most encouraged by the calibre of talent that is continuing to flood into this industry. Origin has always been focused on building; the rapidly increasing level of development driven by the top talent that we’re seeing across this space is what will continue to move the sector forward.”, he added.