Bitcoin topped the $6000 mark over the weekend. The crypto-asset is revving up for profound changes in the coming days.
Bitcoin has risen a stunning 42% this month! The digital asset has beaten just about any other asset available this year. The Bitcoin market is now worth almost $100 billion.
So, what spurred Bitcoin’s most recent rally?
Bitcoin is creating a new cryptocurrency called Bitcoin Gold through a process known as a ‘hard fork’.
Over two months ago, Bitcoin enacted a hard-fork, which intended to increase the blocksize, the project was highly controversial.
Investors are preparing for another upcoming hard fork of the Bitcoin blockchain. On the 25th of October, Bgold will be formed.
Bitcoin Gold will mimic Bitcoin’s proof-of-work algorithm, which will bring greater decentralisation to the cryptocurrency.
Bitcoin’s hard forks won’t stop there however as a few weeks later another split is planned by SegWit2x, although details of this haven’t been laid out just yet.
The hard-fork will result in the creation of new coins. However, the process holds many risks and will create increased volatility in crypto-markets.
Problems persist for the crypto market, with many claiming valuations are inflated and under-regulated. Digital asset markets are notoriously volatile and lack liquidity. Therefore, investors must be extra cautious leading up to the hard forks.
Please note that for now, AvaTrade will not be offering Bgold to our clients.