The response to the Bitcoin Fork (discussed here) has been overwhelming – people like free money!
For those people who kept their wallets at exchanges that would support it, you woke up with your ‘old’ Bitcoin and got some shiny new digital Bitcoin Cash.
The appeal of Bitcoin Cash is that it is meant to be able to handle transactions much more quickly – which is important as transaction volumes rise exponentially. The one view, which I am admittedly only getting up to speed on, is that Bitcoin Cash will be easier to transact with.
While I am not sure about that – what I am sure about is interest in Bitcoin and Crypto Currencies has skyrocketed. The fact that Bitcoin, as I’m writing this, remains around $2,700 and the new Bitcoin Cash is rising (some have an expected valuation of 1 Bitcoin Cash = 0.5 Bitcoin or $1,300) creating even more free money that you had when you woke up.
It is clear that Crypto Currencies aren’t going away any time soon (much to the chagrin of some very famous investors who have been calling it a bubble or fake for years – just one example here). I think this latest burst of interest really started with the stories that Fidelity was allowing employees to use Bitcoin in their cafeteria (here)
It is also becoming a gaping hole in big Wall Street research. The one big area of potential growth, the one areas where customers really need some help to understand if Cyber Currencies are right for them, or how they fit into their portfolio, is being under-served.
Disclaimer: Any opinions expressed are those of Peter Tchir. This info is for educational and/or entertainment purposes only, so use at your own risk. He’s not a broker-dealer or advisor of any kind.
Dislaimer: This is not investing advice, this website is for educational purposes only.