Co-hosting the program “Fast Money” on CNBC’s Brian Kelly (Brian Kelly) said the reason for yesterday’s market downturn. According to analysts, the loss of capitalization was caused by anxiety over the possible division of a Bitcoin Cash in two separate chains.
Given the characteristics of regular network upgrades BCH, “version clients on the basis of the old rules, define the blocks generated by the new rules as invalid”. Thus, the verification node operators should be required to move to the new software, otherwise there will be division and there will be two independent circuits.
Kelly continued, noting that usually these updates go smoothly, but this time not all network operators agree with the proposed upgrade, the center for research and development in the field of blockchain technology nChain, headed by Dr Craig Wright (Craig Wright) proposed an alternative upgrade. The difference of opinion turned into a “cryptocurrency civil war,” which, says Kelly, has led to disturbances in the market and, ultimately, to decline.
The analyst believes that in the long term this event is not at risk:
“From my point of view, it’s all short-lived. I think it’s more of a possibility. By the way, today my Foundation has expanded their crypto-currency reserves”.
The positive Outlook Kelly added the guest of the programme, the principal officer for strategic development CoinShares Meltem, Demirer (Meltem Demirörs). Responding to a question about whether there is a factor that can bring the market in a positive trend after the “short-term” phenomenon, she said:
“Undoubtedly […] every time there’s a fork, trades, tend to acquire strange patterns. I think people just want to reduce the risks. Ahead of us a few exciting events. In December will launch a subsidiary platform of ICE, Bakkt. Then, in January will start a new custody unit of Fidelity to cryptocurrency”.
Planned fork Bitcoin Cash will occur today, November 15, at 18:40 Moscow time. Some exchanges and wallets have already publicly expressed support for an update. So, Coinbase will continue to work with the “official” fork of BCH (BCH Bitcoin ABC).