November is upon us and from traders to investors, all are waiting in curiosity to see what the big Bitcoin fork of November has install for us. It’s clear that prices will be affected tremendously and the market will show it, but how big of an impact will the fork actually have.
A recent split did happen recently on the 20th of October. This was the Bitcoin Gold fork, and within less than a week before the split, we saw the Bitcoin price climbing to an astonishing $6,000. But what investors are wondering will their current Bitcoin investment be at risk with the fork. When the Bitcoin fork occurs this month all Bitcoin traders will see that their investment will be split in two.
This will lead to a price increase for Bitcoin due to two reasons. When the split happens investors will still have their original Bitcoins within their wallets, but also a second type of cryptocurrency token, if your wallet supports the new software. Let’s say you have 20 Bitcoins and the split happens then you’ll still have 20 Bitcoins as well as 20 new coins of a different type. Because investments will increase so to speak everyone is looking to buy Bitcoin before the split happens so that they can profit more. This is however what will happen short term wise.
Long-term wise, the market will stabilize but significant fluctuations and large drops will happen. When Bitcoin splits it will create another type of cryptocurrency, and it’s hard to tell which one will be the community favourite. If you happen to own and buy into the less popular one then the value of your investment can and will drop.
To summarize how the fork will impact price is simple. Before the split, the price will increase as people will try to acquire more Bitcoin in order to double their tokens. Once the split happens the price will face instability in the market until the “real” Bitcoin is determined.
Should You Invest Now?
Currently, it would be wise to purchase Bitcoin before the split and once the split occurs you will have two sets of tokens, so it’s certain that one set will lose value and experience a price drop. When it’s known as to which new Bitcoin will be the go-to cryptocurrency, investors should sell all other Bitcoin that they own belonging to the losing set before the value drops even further, and with that money made you should buy more of the other, growing Bitcoin.
Right now it looks like the price of Bitcoin will increase, then will face drops and heavy instability, just before one Bitcoin’s value increases and the other one’s value decreases.
If we look back at the fork in September we could see how different the price and value was between the two sets. A Bitcoin was worth $4, 171 where the other pair, Bitcoin Cash was worth $441, 71. As you can see there is a huge gap in value.
The fork will affect the price, there is no doubt about it but all traders and investors are behind it because the fork happening in November is based on Segwit2X’s aim to increase the transaction capability of Bitcoin. So even if price drops are to be expected the final outcome for Bitcoin will be positive.