The Investment Strategy Behind BCH Two Sides War

The Investment Strategy Behind BCH Two Sides War

Nov 4th 2018| Investment By:Max
BCH will continue to shock rise,maybe a relatively large turning point on Nov 14 or Nov 15.

Bitcoin Cash(BCH) is about to get another hard fork on November 15, 2018. After the upcoming hard fork, BCH is likely to be divided into 2-3 chains and then there will be 2-3 different tokens. So investing in BCH before the fork, the investment will be profitable. After the fork, however, the BCH could be significantly devalued due to the shunted network computing power and divided communities.There are four factors impact BCH price: 

1.The BCH affected by the news has sustained positive impetus for a period of time. 

2.Such good news will be dissipated in the process of approaching fork. 

3.BSV does not necessarily follow fork airdrop to BCH holders, bringing potential selling risk.

4.Risks arising from the uncertainty of market fluctuations after BCH fork.

Therefore, it is hard to choose for investors.The Two Sides War have been started long time ago, the fork comes after BitcoinABC, BCH's largest client, announced it would update the scripting language of BCH in November, which makes it possible for BCH to split into two chains. While CSW, the advocater of the Bitcoin SV node, has repeatedly said that the two clients are not compatible, and incompatibility means that two chains run together and there is the possibility of power war in one chain. This means that there will be two different BCH chains: BCH ABC and BCH SV.

Bitcoin Cash’s 24-hour chart   Source: CoinMarketCap 

Since the countdown to the fork began, the market has been optimistic about the profits may generated from this move, but this optimism may not continue for long. After the fork, the market may cool down and wait and see from a rational stand. 

Before the fork actually lands, there will be greater possibility of mass investment because many people continue to hold BCH in order to obtaining the new fork tokens later. From this perspective, we will see its community picking sides between two opposing camps, those who expects to sell their tokens at a high price, and those who intends to receive them at a low price, so there is likely to be a stalemate, causing a small range of oscillation. Of course, the actual situation of market may differ greatly from the forecast one.