Today’s newsletter covers the intriguing balance between Bitcoin, Bitcoin Cash and blockchain technology.
Bananas for Bitcoin Cash
The recent cancellation of the bitcoin fork created an interesting dynamic between Bitcoin and Bitcoin Cash in the marketplace. The result was a drop in the value of the original bitcoin to below $6,000 although this Monday it’s climbed back up to nearly $6,500. Meanwhile, Bitcoin Cash has gone through the ceiling, crossing $2,000 briefly before falling back to just above $1,300 today. We look more closely at why traders are going bananas for Bitcoin Cash.
Is the bitcoin market cap sustainable? We explore why programming and community politics make the evolution of bitcoin a challenge in our “Mad Max” post below. As one analyst said, if bitcoin was Microsoft or Apple, a bitcoin software code update would be done without delay. That’s not the way of bitcoin today and it’s an interesting dilemma for its future.
Blockchain buzz
When is a blockchain not a bitcoin? Pretty much all the time. We look in detail at why it’s important to distinguish between blockchain and bitcoin. Particularly, when it comes to blockchain technology applications to business.
Despite the buzz about blockchain technology, I’m never tired of hearing about blockchain business cases. Overstock.com is just one of them. The online retailer has built its success on e-commerce and the recent addition of blockchain technology. Investors are excited and we explore where blockchain technology might take the company next.
Traders go bananas for Bitcoin Cash
First, bitcoin dropped below $6,000 in value for the first time in several weeks, mostly based on confusion and division in the developer community on whether the hard fork should have gone ahead. Second, the kid brother of bitcoin – Bitcoin Cash – jumped from $310 on October 16 to pass $1,953 in trading on November 12. If you were smart or lucky enough to jump on board the Bitcoin Cash banana boat when it forked in August, you’d be the one with a big smile right at the moment. Via PaymentsNEXT
Bitcoin’s ‘Mad Max’ problems intensify
Bitcoin was created as part of an anti-establishment movement to democratize money by creating digital currencies. Enter politics and you have a recipe for a problem of Mad Max proportions. Despite a few missteps, occasional fraud and the usual small number of bad actors, bitcoin has generally been on a positive growth curve for nearly nine years. What’s ahead? Via PaymentsNEXT
When is a blockchain not a bitcoin?
It’s worth remembering, as Tim Culpan wrote recently in Bloomberg’s Gadfly column: Bitcoin ≠ blockchain. This message bears repeating: You can be pro-blockchain and anti-bitcoin. He makes the point that Wall Street bankers and traditional, conservative investment advisors like the potential of blockchain technology but can’t stand the unregulated nature of cryptocurrencies. Via PaymentsNEXT
Blockchain technology adds lustre to Overstock.com shares
Despite a $6.5 million loss in Q3, the value of shares of Overstock.com have tripled from $17.70 to $53.15 this year. Some market analysts are saying that Overstock could sell off its e-commerce business and instead become a blockchain company. Recently, several other companies saw a dramatic share price increase with a name change and rebranding to include blockchain in the company name. Via PaymentsNEXT
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