As the rising value of Bitcoin Cash attracts traders, the general consensus in the market is that the price of bitcoin will increase soon.
BnkToTheFuture CEO and co-founder Simon Dixon maintains that there will be more increase in value in the following weeks. He cites the entry of retail and large scale company investors via properly regulated exchanges dealing in bitcoin derivatives and futures as a positive indicator.
Three major options exchanges including LedgerX, CBOE and CME are all set to launch bitcoin options, derivatives and futures by December 2017. They aim to target the increasing number of investors, hedge funds and investment companies that have evinced interest in bitcoin as an asset.
How threatening is bitcoin Cash surge?
The Bitcoin vs Bitcoin Dash struggle has attracted widespread interest among the bitcoin community. Investors, users and miners are avidly watching the turnout of events and some even go to the extent of predicting the end of bitcoin.
According to Ted Rogers, President of Xapo, the spike in value of bitcoin cash is not a sustainable one. The altcoin being a new entry to cryptocurrency market did not have the community, infrastructure or an active base of users to support its stability. In spite of the migration of Segwit2X supporters, he states that Bitcoin cash cannot withstand the strides it had gained.
Rogers maintains that the high value of Bitcoin Cash makes it too expensive for investors to buy it. On the contrary, bitcoin had become cheap and irresistible with its value hovering around $6,300.
With the fall in prices, traders are starting to take advantage of the dip, buying into bitcoin. The rebound of the coin in such a short span shows its resiliency. But what traders wonder is will it move to its record high value of $7,900 again?
Bitcoin on the rebound
Bitcoin value is under threat from the surging bitcoin cash prices. Last week, the cryptocurrency registered high volatility. After a sudden decline to $5,500, bitcoin however maintained its supremacy by recovering to $6,200 during the weekend.
There are two reasons for the fluctuating bitcoin value – the increase in Bitcoin cash value and the shift of support by Segwit 2X advocates including users, businesses and investors towards Bitcoin cash.
Bitcoin cash value revealed a new high of $1,500 on November 10 from a mere $600 and later to $2,800 on November 12. But later in the day, the value dropped to $1,500 as Bitcoin recovered from its earlier slump to $6,200.
How will Bitcoin Cash influence Bitcoin?
In the event of the present trend continuing with Segwit2X supporters encouraging Bitcoin Cash support, both the cryptocurrencies are expected to coexist as leading currencies in the market. According to Andreas Antonopoulos, an expert on cryptocurrency security and bitcoin, it is possible for Bitcoin Cash and bitcoin to exist together just as bitcoin existed with Ethereum for the last couple of years. The contrast in strategy, philosophy and vision makes this possible.
Market experts predict that bitcoin will continue to exist as a safe and valuable asset triggering its demand resulting in it reaching a new high soon. And this will happen despite the increased interest in Bitcoin Cash.