[2017-08-01] Bitcoin’s Civil War is Over But Bitcoin Price Set For Extreme Volat

[moriskarlov]

Bitcoin’s three-year civil war, which so thoroughly divided the community into armed camps, appeared to come to a close with the activation of BIP 91 just over a week ago.

BIP 91 is the first step in implementing the SegWit2x scalability proposal which is supported by the vast majority of economic actors and miners. There is, however, one significant wild card. It’s called ”Bitcoin Cash.”


Disruptions

Bitcoin Cash is supported by some notable members of the “big block” camp, such as Roger Ver, and on Aug. 1 it will hard fork from the main Bitcoin network, causing a chain split. Most people expect this to be a non-event, with Bitcoin Cash immediately being relegated to “altcoin” status. However, there is significant potential for market disruptions, and Bitcoin Cash has the potential to strongly affect Bitcoin’s value.

Bitcoin Cash presents a significant challenge in how exchanges deal with customer’s funds and margin orders.

Many Bitcoin exchanges have agreed to list Bitcoin Cash and to credit Bitcoin Cash funds to their customers' accounts properly.  There remain significant differences in how exchanges intent to do this, particularly concerning margin orders.

Kraken has decided that margin longs will be credited with Bitcoin Cash, while margin shorts will owe Bitcoin Cash to the exchange.

Bitfinex has taken the opposite position, awarding Bitcoin Cash to those who are margin short and requiring margin longs to pay Bitcoin Cash to the exchange. As a result, traders on Bitfinex are overwhelmingly “short,” while traders on Kraken are likely disproportionately “long.”

The potential exists for Bitfinex’s Bitcoin price to skyrocket as shorts are closed, while Kraken’s Bitcoin price could collapse because of margin long positions being closed.


Uncertainty

Bitcoin Cash futures have reached as high as 25 percent of the Bitcoin price, leading some to believe that the new asset will be more robust and valuable than generally expected.

    Should the price of Bitcoin Cash tend toward zero, the fork will likely be a non-event, and all Bitcoin owners will also own a corresponding amount of worthless altcoin.

On the other hand, if Bitcoin Cash’s price exceeds expectations, it could cause miners to abandon the main Bitcoin chain and mine Bitcoin Cash. The market could also react very unfavorably, causing Bitcoin to dump if Bitcoin Cash soars.


Manipulation

Finally, there is limitless opportunity for market manipulation.

Some, like Ver, have suggested they are willing to part with hundreds of thousands of Bitcoins, selling them in order to buy additional Bitcoin Cash. Large sell orders could cause significant market disruptions.

Additionally, Bitcoin exchanges are seeing liquidity dry up as traders move their funds to cold storage in anticipation of possible problems. The lack of funds on exchanges could cause rapid price movements and extreme volatility.

Link to source:
https://cointelegraph.com/news/bitcoins-civil-war-is-over-but-bitcoin-price-set-for-extreme-volatility

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[CryptoBry]

We will see what will happen in the coming days. The main sentiment of the market is that Bitcoin will soar into the sky once this first phase will be over and that BitcoinCash is now being looked as just another altcoin and not anymore as a threat. Now, even if BitcoinCash can be gaining in value, there is a possibility that the two coins can exist peacefully -- that is without necessarily fighting each other.

[Coin-Keeper]

Once and IF BCC is determined to merely be an alt coin, then my opinion is BTC will soar.  Of course we all have opinions, but right now the new fork appears to me to be a "bump" in the road and beyond that it might be smooth sailing.  If I am proven to have guessed wrong I'll switch to the other leg of the new fork, which for now is an easy process.

[Yuhee]

Once and IF BCC is determined to merely be an alt coin, then my opinion is BTC will soar.  Of course we all have opinions, but right now the new fork appears to me to be a "bump" in the road and beyond that it might be smooth sailing.  If I am proven to have guessed wrong I'll switch to the other leg of the new fork, which for now is an easy process.

Im sure most will see it as fork because for now BCC is just a dumping site for those who got it free during the hardfork. For no that is, because off course even if the so called civil war has ended, there will always be another issue in which not all of the founding members could come up with just one solution or will agree upon. And in terms of prices, surely bcc will decrease in time but it still has a good chance to compete with other altcoins out there.

[monocolor]

BCC shouldn't affect too much the bitcoin. Ethereum had a good example with Ethereum classic. So all will be fine with bitcoin.

[Aur3]

Once and IF BCC is determined to merely be an alt coin, then my opinion is BTC will soar.  Of course we all have opinions, but right now the new fork appears to me to be a "bump" in the road and beyond that it might be smooth sailing.  If I am proven to have guessed wrong I'll switch to the other leg of the new fork, which for now is an easy process.

The idea if a civil war is ridiculous. Bitcoin is the most popular crytocurrency in the world, come on. I don't get why it needs a division.

You know what, it's better to use these coins for investment. Life can be better if you'll take risk and invest in Everex. This company will change the remittance world for the better, goo.gl/E2NDF2 but this Bitcoin vs Bitcoin Cash mess, it won't do anything good.

[btcton]

Once and IF BCC is determined to merely be an alt coin, then my opinion is BTC will soar.  Of course we all have opinions, but right now the new fork appears to me to be a "bump" in the road and beyond that it might be smooth sailing.  If I am proven to have guessed wrong I'll switch to the other leg of the new fork, which for now is an easy process.

Rather than that, I think all BCC is proving by hard forking off the blockchain and not really achieving much is that their purpose simply doesn't have support from any major holders or miners. As you have been able to tell from exchange prices, Bitcoin's price has been around what it was in the days before the fork and has not really changed much at all since then. Therefore, it is highly unlikely that it means anything to anyone anymore. I don't even understand how people can dumb something that no one wants. Basically what I am saying is that the new fork cannot even be considered a bump in the road. It did not affect the main chain at all.

I am no day trader, but I believe the current BCH price is simply a bubble about to burst.

[cr1776]

Once and IF BCC is determined to merely be an alt coin, then my opinion is BTC will soar.  Of course we all have opinions, but right now the new fork appears to me to be a "bump" in the road and beyond that it might be smooth sailing.  If I am proven to have guessed wrong I'll switch to the other leg of the new fork, which for now is an easy process.

Rather than that, I think all BCC is proving by hard forking off the blockchain and not really achieving much is that their purpose simply doesn't have support from any major holders or miners. As you have been able to tell from exchange prices, Bitcoin's price has been around what it was in the days before the fork and has not really changed much at all since then. Therefore, it is highly unlikely that it means anything to anyone anymore. I don't even understand how people can dumb something that no one wants. Basically what I am saying is that the new fork cannot even be considered a bump in the road. It did not affect the main chain at all.

I am no day trader, but I believe the current BCH price is simply a bubble about to burst.

Regarding the high price - perhaps the lack of exchanges that are supporting it makes price discovery difficult since few people can sell allowing easier support.

[1Referee]

Regarding the high price - perhaps the lack of exchanges that are supporting it makes price discovery difficult since few people can sell allowing easier support.

I actually did expect the price to tank real hard, but it didn't happen - reason is likely that what you pointed out. I cashed out 10BCC at slightly over the 0.14BTC level. I will unload another 10BCC if the price increases further, perhaps above the 0.20BTC level. Seriously there is nothing to lose, so for me waiting for the BCC price to increase further, might turn out to be a more than worthwhile practice. Other than that - there is no way Ver will cash out hundreds of thousands of BTC to buy BCC, that's a straight lie. He has been offered some massive trades in return for his BTC, but thus far he has not even responded to any of these requests. Just proves that he is nothing more than a barking dog.