Bitcoin soars above $6000 for the first time, on volume that seems to be surpassing the run that happened on Oct 12th. It seems like every time you blink something big is happening to the price of Bitcoin. The Alt-Coin market does not show the same increase in volume as the Bitcoin surge indicating that new money is being invested and not just a conversion of Alt-coins to Bitcoins. At a glance it seems two main factors are fueling this surge.
The first seems to be the FUD generated by the Chinese Communist Party Congress failed to materialize. Although, there was a sudden 9% dip on Oct. 18th the dip was quickly turned into a buying opportunity by speculative investors.
The second driving force is the anticipated Bitcoin/Bitcoin Gold hardfork coming on Oct. 25th. When the hard fork is initiated investors who currently hold Bitcoins will get an identical amount of the new Bitcoin Gold. Although similar to a stock split, their is a major difference.
“A stock split is a corporate action that divides existing shares into more shares without changing the underlying claims on assets that those shares represent. If you double the amount of something, but cut its value in half, you haven’t effectively changed the underlying economics at all. (Which is worth more to you: a $20 bill or two $10 bills?)
But here’s what really matters about a stock split: no new entity of any kind is created. The same corporate entity that existed before the split still exists afterward.
From an operational standpoint, nothing has been added and nothing has been taken away.
Bitcoin: When Bitcoin Cash split off from the bitcoin blockchain it created an entirely new blockchain unique to Bitcoin Cash. From this point forward, the two currencies will trade under separate symbols. And they will each have their own transaction history after the time of the split, and develop unique values.
Both may fail, both may thrive. That’s up to individual actors in the marketplace.
And the ongoing popularity of ethereum and ethereum classic shows just how long it can take for the market to decide – if it will pick one winner at all.” Coindesk
What is really driving the price surge? I’m leaning towards the anticipation of the Bitcoin fork, but tell me what you think.