Bitcoin Cash and the other “Bitcoin” coins have both made the mainstream and, thus far, have not been affected by the recent fork in the network, which occurred this week.
“It’s really hard to say at this point if Bitcoin Cash will be accepted as an alternative to Bitcoin as an exchange or as a store of value,” explained Nick Colas, CEO of Signature Bank.
“What we can say is it’s been accepted as a currency, not as an investment or as an asset,” he added.
While the value of Bitcoin has fluctuated, with a value of $13,000, it has been accepted by a significant number of investors, and a few have been selling their coins.
“In some cases it has become very profitable,” Colas said.
“But the market is not as big as the value or the value-to-risk ratio, and we’ve seen a lot of investors in this space do very well.”
While there is no hard evidence to show how many people are buying Bitcoin Cash or what the value will be when it becomes mainstream, it is known that many people do not want to trade Bitcoin at current prices.
“There are some concerns that some people may want to sell, and that could potentially create volatility,” Colos said.
“If there are a lot people that have Bitcoins that have been traded, they’re probably trading in a situation where the market doesn’t reflect the market value of Bitcoins, so it could be quite volatile.”
According to Colas and others, this could be a big problem for Bitcoin Cash as it has already suffered from volatility.
“People have lost millions and millions of dollars because of Bitcoin,” he said.
In fact, CoinDesk’s own data suggests the value has dropped by more than half since the fork occurred.
On Tuesday, the price of Bitcoin Cash fell by more as much as 9% to $14,711, while the price on Coinbase rose by as much by about 20% to as much $8,903.
Bitcoin’s price has been hovering around $16,000 for the last 24 hours.
Meanwhile, the value for other cryptocurrencies on CoinMarketCap has increased by around 40% since the start of the week, including Ethereum, Ripple, and Litecoin.
According to CoinDesk, it took $12.6 million in market capitalisation to buy Bitcoin at its current price.
That is a substantial amount of money, and could help to justify the price rise that has caused the price to surge over the past 24 hours, with Bitcoin now hovering at more than $17,000.
“We’re seeing Bitcoin cash on the move,” Colasa said.