The Bitcoin Cash Price: Questions, Answers and More Questions

Без кейворда

When a fresh tradable asset hits the market – especially one that claims to be worth more than $Five billion at launch – investors are certain to have questions.

But in the case of Bitcoin Cash (BCC) , the questions are more significant than the answers – particularly because at this early stage people are mostly assuming answers.

What’s the price of Bitcoin Cash? Sure, exchanges will give you quotes. But what does that price actually mean?

The unfortunate reaction after the very first few days of trading is not much. And that’s not the only area where the market could benefit from extra clarity.

Who has access to BCC?

Perhaps the most basic question for investors is: When the blockchain split, who exactly was given access to Bitcoin Cash? And how big is the market for trading?

As of August 1, holders of bitcoin who either managed their private keys or had accounts with exchanges that were supporting Bitcoin Cash should have had access to an equal amount of cryptocurrency on both the bitcoin blockchain and the freshly created Bitcoin Cash blockchain.

Some popular exchanges in the U.S. and abroad, however, chose not to support Bitcoin Cash.

And understanding whether exchanges support Bitcoin Cash is more complicated than a plain yes or no. As an example of this complexity, one bitcoin blog reported the seemingly straightforward question with numerous different answers, including the elementary yes and no, plus “potentially not at a 1:1 rate” and “not at fork time.”

Further, some bitcoin owners (due to language confusion or disinterest) may not have even known (or cared) that there was a split.

At the end, who got what? Like many things in the cryptocurrency space, that reaction is unclear.

What’s the value proposition?

After figuring out whether or not they have access, investors will ultimately want to know whether they should hold, sell or buy more Bitcoin Cash. And that query relates to the fresh cryptocurrency’s long-term value proposition – one that it has only just begun to truly develop.

Bitcoin, unlike Bitcoin Cash, has an established history as a medium of exchange, being used to buy goods and services from a well-established network of merchants. While much of bitcoin’s activity is speculative in nature, there are other use cases which have stabilized the price.

In brief, when the blockchain split, the bitcoin code was copied (with a few tweaks), but its infrastructure was not.

Wallets, exchanges, merchants and mining power put toward bitcoin didn’t automatically commence providing the same services for Bitcoin Cash.

And now that bitcoin and Bitcoin Cash are rivaling in the same market, it’s unclear if the ecosystem surrounding bitcoin will also build up around Bitcoin Cash. In a sense, it’s like having two companies rivaling for the same clients.

Bitcoin Cash has yet to articulate its unique value proposition in a clear and well-defined manner, albeit it has staunch idealists who believe its fatter block size will create a vastly more efficient and user-friendly payment system. And ultimately, its long-term viability is dependent on this capability to create utility and value for any ecosystem that grows around it.

An significant point to note here is that Bitcoin Cash exchanges will be for-profit businesses, so if a sustainable revenue model for creating liquidity on exchanges doesn’t exist, Bitcoin Cash’s future becomes less certain.

What’s the market cap?

Defining the market capitalization of an asset is an significant part of understanding its market structure.

As of press time, Bitcoin Cash’s market capitalization was being reported at around $Trio.9 billion, making it the “fourth largest cryptocurrency,” according to CoinMarketCap. But that market cap doesn’t represent the amount of exercisable capital actually invested in Bitcoin Cash.

After all, the phrase “market capitalization” comes from the equity world. In equities, market cap is equal to the total shares outstanding multiplied by the market price of a stock.

In cryptocurrency, it’s equal to the number of coins in circulation multiplied by the price. Some of the coins counted under this definition then may not, in fact, be under anyone’s control. When bitcoin holders lose their private keys, their bitcoin inject a kind of limbo state: They are effectively dead to their owners, but still emerge to be active on the network and are counted toward the cap.

For example, one of the largest holders of bitcoin is its unknown creator Satoshi Nakamoto, who has never spent a coin, and likely will never spend a coin, either bitcoin or Bitcoin Cash.

Another wrinkle for Bitcoin Cash could be introduced by bitcoin’s cap on coin count. The total number of bitcoins permitted under the current codebase it twenty one million. As of today, 16.Five million have already been mined.

Does that mean Bitcoin Cash can only mine Four.Five million more coins for the duration of the time the cryptocurrency is in use? Will Bitcoin Cash propose to adjust that parameter in the future?

At this point, answers to those questions remain unknown.

What’s the price and liquidity?

These could be the most significant questions for the market, since without a clear, reliable and semitransparent pricing mechanism it’s unlikely for owners to determine the value of their holdings.

Right now, many in the business media are reporting on prices as tho’ they were based on well-established and open standards. But they’re not.

Making a price determination will also be significant for bitcoin holders whose exchanges did not support Bitcoin Cash, since a high enough price could increase the odds of collective pressure being brought and policies being switched.

Building on that, is a price a real price if you can’t trade an asset anywhere near it? For example, if you see a market price of an asset, but as soon as you attempt to trade at that price the liquidity instantaneously dries up, does the price have any meaning?

Market volume in Bitcoin Cash is being quoted by market data providers. But whether or not volume being quoted represents true liquidity is another question entirely.

We do know 24-hour liquidity was being quoted on some data service sites before the market had been open for twenty four hours. No reference was made to how these calculations were being done. That alone suggests that some potential irregularities exist around data reporting.

If there are, say, twenty percent price differences inbetween different exchanges can an asset be said to have a consistent price? A casual look at Bitcoin Cash prices on Friday displayed price deltas inbetween exchanges in that range.

Should investors view this (and other questions) as an chance or an obstacle? One thing is clear, for now, these questions will certainly prove significant to keep in mind.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a stringent set of editorial policies. Interested in suggesting your expertise or insights to our reporting? Contact us at [email protected] .

The Bitcoin Cash Price: Questions, Answers and More Questions

Без кейворда

When a fresh tradable asset hits the market – especially one that claims to be worth more than $Five billion at launch – investors are certain to have questions.

But in the case of Bitcoin Cash (BCC) , the questions are more significant than the answers – particularly because at this early stage people are mostly assuming answers.

What’s the price of Bitcoin Cash? Sure, exchanges will give you quotes. But what does that price actually mean?

The unfortunate response after the very first few days of trading is not much. And that’s not the only area where the market could benefit from extra clarity.

Who has access to BCC?

Perhaps the most basic question for investors is: When the blockchain split, who exactly was given access to Bitcoin Cash? And how big is the market for trading?

As of August 1, holders of bitcoin who either managed their private keys or had accounts with exchanges that were supporting Bitcoin Cash should have had access to an equal amount of cryptocurrency on both the bitcoin blockchain and the freshly created Bitcoin Cash blockchain.

Some popular exchanges in the U.S. and abroad, however, chose not to support Bitcoin Cash.

And understanding whether exchanges support Bitcoin Cash is more complicated than a ordinary yes or no. As an example of this complexity, one bitcoin blog reported the seemingly straightforward question with numerous different answers, including the ordinary yes and no, plus “potentially not at a 1:1 rate” and “not at fork time.”

Further, some bitcoin owners (due to language confusion or disinterest) may not have even known (or cared) that there was a split.

At the end, who got what? Like many things in the cryptocurrency space, that reaction is unclear.

What’s the value proposition?

After figuring out whether or not they have access, investors will ultimately want to know whether they should hold, sell or buy more Bitcoin Cash. And that query relates to the fresh cryptocurrency’s long-term value proposition – one that it has only just begun to truly develop.

Bitcoin, unlike Bitcoin Cash, has an established history as a medium of exchange, being used to buy goods and services from a well-established network of merchants. While much of bitcoin’s activity is speculative in nature, there are other use cases which have stabilized the price.

In brief, when the blockchain split, the bitcoin code was copied (with a few tweaks), but its infrastructure was not.

Wallets, exchanges, merchants and mining power put toward bitcoin didn’t automatically begin providing the same services for Bitcoin Cash.

And now that bitcoin and Bitcoin Cash are contesting in the same market, it’s unclear if the ecosystem surrounding bitcoin will also build up around Bitcoin Cash. In a sense, it’s like having two companies rivaling for the same clients.

Bitcoin Cash has yet to articulate its unique value proposition in a clear and well-defined manner, albeit it has staunch idealists who believe its thicker block size will create a vastly more efficient and user-friendly payment system. And ultimately, its long-term viability is dependent on this capability to create utility and value for any ecosystem that grows around it.

An significant point to note here is that Bitcoin Cash exchanges will be for-profit businesses, so if a sustainable revenue model for creating liquidity on exchanges doesn’t exist, Bitcoin Cash’s future becomes less certain.

What’s the market cap?

Defining the market capitalization of an asset is an significant part of understanding its market structure.

As of press time, Bitcoin Cash’s market capitalization was being reported at around $Three.9 billion, making it the “fourth largest cryptocurrency,” according to CoinMarketCap. But that market cap doesn’t represent the amount of exercisable capital actually invested in Bitcoin Cash.

After all, the phrase “market capitalization” comes from the equity world. In equities, market cap is equal to the total shares outstanding multiplied by the market price of a stock.

In cryptocurrency, it’s equal to the number of coins in circulation multiplied by the price. Some of the coins counted under this definition then may not, in fact, be under anyone’s control. When bitcoin holders lose their private keys, their bitcoin come in a kind of limbo state: They are effectively dead to their owners, but still emerge to be active on the network and are counted toward the cap.

For example, one of the largest holders of bitcoin is its unknown creator Satoshi Nakamoto, who has never spent a coin, and likely will never spend a coin, either bitcoin or Bitcoin Cash.

Another wrinkle for Bitcoin Cash could be introduced by bitcoin’s cap on coin count. The total number of bitcoins permitted under the current codebase it twenty one million. As of today, 16.Five million have already been mined.

Does that mean Bitcoin Cash can only mine Four.Five million more coins for the duration of the time the cryptocurrency is in use? Will Bitcoin Cash propose to adjust that parameter in the future?

At this point, answers to those questions remain unknown.

What’s the price and liquidity?

These could be the most significant questions for the market, since without a clear, reliable and semi-transparent pricing mechanism it’s unlikely for owners to determine the value of their holdings.

Right now, many in the business media are reporting on prices as tho’ they were based on well-established and open standards. But they’re not.

Making a price determination will also be significant for bitcoin holders whose exchanges did not support Bitcoin Cash, since a high enough price could increase the odds of collective pressure being brought and policies being switched.

Building on that, is a price a real price if you can’t trade an asset anywhere near it? For example, if you see a market price of an asset, but as soon as you attempt to trade at that price the liquidity instantly dries up, does the price have any meaning?

Market volume in Bitcoin Cash is being quoted by market data providers. But whether or not volume being quoted represents true liquidity is another question entirely.

We do know 24-hour liquidity was being quoted on some data service sites before the market had been open for twenty four hours. No reference was made to how these calculations were being done. That alone suggests that some potential irregularities exist around data reporting.

If there are, say, twenty percent price differences inbetween different exchanges can an asset be said to have a consistent price? A casual look at Bitcoin Cash prices on Friday showcased price deltas inbetween exchanges in that range.

Should investors view this (and other questions) as an chance or an obstacle? One thing is clear, for now, these questions will certainly prove significant to keep in mind.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a stringent set of editorial policies. Interested in suggesting your expertise or insights to our reporting? Contact us at [email protected] .

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