Effect of forks on Cryptocurrency prices
The world of cryptocurrency is growing and developing, one of the most significant factors affecting its prices is the phenomenon known as «fork». The developer or group of developers creates this may have a far -reaching effect on the price of existing cryptocurrencies.
What are the forks?
The forks refer to the creation of separate blockchain networks, often with different features and functionality. Original block chain orientation or try to create your own alternative encryption technology (Altcoin).
Impact on cryptocurrency prices
When a fork occurs, it can make significant effects on the price of suffering cryptocurrencies. Here are some ways in which the fork can affect prices:
- This increased demand can increase the price of a new ID.
- Counted adoption : This can lead to the total value of new cryptocurrencies.
. This can lead to.
- Regulation Uncertainty : Forklots often regulatory issues that can affect investors’ feelings and overall market dynamics.
Examples of successful forks
Despite the risks associated with the fork,
- Bitcoin Cash (BCH) : In 2017, a group of developer team branchy Bitcoin Cash (BCH) created by Bitcoin, with a significant increase in price.
- Litecoin (LTC) :
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Examples of failed forks
Investors’ losses:
- Binance coin (BNB)
: In 2017, Binance, one of the largest cryptocurrency exchange, forced her original ID to create a new version of BNB.
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conclusion
Fortocurrency market with significant effects on prices. Activation, failed to investors. When
Recommendations
To minimize the risks associated with the fork:
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