Bitcoin Split: Where Do We Go from Here?

Matthew Newton, Market Analyst at eToro commented:

“The value of Bitcoin is inherently linked to the likelihood of Bitcoin acquiring purchasing power in the real world. Bitcoin was once a cryptic term for most, associated with tech types and risk takers. Yet the cryptocurrency is becoming increasingly mainstream. We have just seen Lush commit to accepting Bitcoin payments online. Other retailers may well follow.

“The recent stand-off between miners and network users over the future direction for Bitcoin has threatened in recent weeks to throw Bitcoin off course. Yet despite the stubbornness on both sides, it was ultimately in everyone’s interest to come to a resolution and strike a deal. Miners and users have now agreed on one method for creating the cryptocurrency and speeding up transactions.

“With both miners and users of the cryptocurrency now on the same page, Bitcoin is heading in the right direction. However, it has a long way to go before it can become a credible currency for global transactions.

“This moment will give investors increased confidence in other cryptocurrencies. However, we expect some capital could be pooled out of cryptocurrencies such as Ethereum into Bitcoin in the short term, as traders look to capitalise on price swings.”