I can’t remember a nuttier weekend in the history of Bitcoin than this one. That’s because the action gets more exciting by the day, with deeper plots, more options, growing complexities, and financial and personal drama all around.
You know why? Because this technology matters enormously for the future of the world. It’s Day One in the birth of a new way of doing business.
My own Twitter and instant messaging blew up with questions, assertions, declarations, and anathemas. I loved every minute, but that’s because I enjoy this world. Outsiders just getting into Bitcoin must be completely confused or even terrified.
I can only imagine what it must be like for someone who ventured into Bitcoin within the last 30 days. They must be wondering what kind of circus this is, especially if these people became curious and started examining the vibrant sector of Bitcoin news organizations. You can read this material all day and leave more confused than ever.
And it is true: Bitcoin is more confusing now than it ever has been. It’s the last place anyone thought we would be five years ago, but such is the nature of an emerging and massively disruptive technology. It’s going to be a long time before it is as easy and inevitable as electricity.
What exactly was going on? I could not begin to give a full account even if I did understand it all. I’ve got no real dog in the fight taking place right now but rather write as an enthusiastic observer and minor participant in the most exciting technological drama of my lifetime. It’s extremely hard to write about this for the uninitiated without seeming to speak Klingon, but here is my attempt.
BTC vs. BCH
Essentially a new currency called Bitcoin Cash (a “fork” from the main chain, meaning that all previous Bitcoin owners also own Bitcoin Cash) came into its own, after having been declared dead only a few weeks ago. I heard for weeks that this thing called BCH was “going to zero”…just before it didn’t. I did the opposite.
The shock was (and is) palpable. For years, people have been wondering if Bitcoin could forever maintain its top spot in the cryptocurrency world, given just how much competition is out there. Anyone can make a token. Surely Bitcoin could be challenged at some point.
Two nights ago, the least likely candidate emerged from the pack. Plain-old Bitcoin (BTC) is still #1 is market capitalization at $104 Billion. Pause to consider how large that is and yet it is only 2% of gold valuation, which suggests that it has a long way to go. The token for the Ethereum (ETH) blockchain (more of an asset than a currency) has been a far lower #2 for a long time at $29 billion.
Suddenly Bitcoin Cash (BCH) rocketed past Ethereum in market capitalization, peaking at a dollar exchange ratio of $2,400 (with a temporary market capitalization of $32.8 billion) before falling again and then ever faster, finally to land at $1,100 (with a market cap of $18.8 billion) as for this writing. It was a wild ride.
