Nick’s Note: Today, we turn to resident cryptocurrency expert Teeka Tiwari… who has an important update on the bitcoin “nerd war.”
By Teeka Tiwari, editor, Palm Beach Confidential
Back in March, I told you there was a split in the bitcoin community on how best to grow the network.
Both sides were looking for ways to increase the number of transactions the bitcoin network could handle.
This “nerd war” threatened to “fork,” or split, bitcoin into two competing currencies.
There was uncertainty about whether bitcoin could survive a fork. The uncertainty caused massive volatility in the price of bitcoin. At one point, it dropped 33%.
Leading up to the fork, I preached patience…
In a March 28 Daily essay, I said “hold tight and don’t sweat the volatility.”
And on July 27, a week before the “war” concluded, I wrote, “A bitcoin price of $3,500–$5,000 this year is not out of the question.”
If you heeded my advice, you’d be sitting on 55% gains today. Bitcoin went from $2,561 before the fork to nearly $4,000 as of this writing.
I’m writing today not to pat myself on the back… but to tell you that I see another leg up for bitcoin.
But first, let me show you how the “nerd war” turned into a positive for bitcoin buyers.
A Win-Win Outcome
Without going into too much detail, there were two sides to the “nerd war”…
The “winner” was a group of developers who backed a protocol called SegWit2x. This upgrade will allow bitcoin to increase its transaction volume by up to four times.
However, a minority of bitcoin miners and developers defected. They chose another solution.
This split caused a fork in the bitcoin network. And that created a new version of bitcoin called Bitcoin Cash.
(A cryptocurrency fork is similar to a corporate spin-off. You keep the shares of the parent company and receive new shares from the spin-off.)
So today, there are two versions of bitcoin: the original bitcoin (BTC) and Bitcoin Cash (BCH).
Here’s why that was such a positive for bitcoin owners…
If you owned BTC, you received an equal amount of the new BCH cryptocurrency—for free.
Say you owned three BTC coins. After the fork (and if you had your BTC in a proper wallet), you would have automatically received three BCH coins.
Right now, BCH is trading around $650. That means you’d have an extra $1,950—free and clear—just for owning BTC. (We recommended selling BCH after the fork.)
But there’s more good news for BTC owners…
You see, as I predicted, the fork occurred without a hitch. Once the uncertainty passed, BTC’s price shot up.
For folks who heeded my July 27 advice, it was Christmas in summertime.
Not only did BTC owners see the value of their holdings rise—they were also gifted new BCH coins.
It doesn’t get any better than that…
More Growth Ahead
Back in March, I told you that once uncertainty surrounding the code change passes, we could see a sea of new money flood into bitcoin.
I predicted that a BTC price of $3,500–$5,000 this year was not out of the question.
All that has come to pass…
If you didn’t act before August 1, there’s still time to buy into BTC.
Here’s what I wrote back on July 27:
If you’ve been on the fence about buying bitcoin, think about this: This might be your last chance to buy bitcoin for under $3,000 per coin.
Now that bitcoin’s “scaling war” has come and gone without a hiccup, BTC has soared. And this might be the last time you can get in under $5,000.
With the introduction of a U.S.-regulated options and futures market for bitcoin later this year, we believe bitcoin prices are headed much higher.
Last month, bitcoin exchange LedgerX received federal approval for the first-ever bitcoin options service.
And just this month, institutional investor VanEck filed with the U.S. Securities and Exchange Commission (SEC) to open a bitcoin exchange-traded fund (ETF).
These developments, and others like them, will open the floodgates to institutional money in bitcoin.
Remember, you don’t have to own a whole bitcoin. You can own just a fraction of a coin.
This may be your last chance to get in on this “win-win” deal.
Let the Game Come to You!
Teeka “Big T” Tiwari
Editor, Palm Beach Confidential
P.S. This Thursday, I’ll be hosting a live cryptocurrency Q&A session… and answering the questions on every reader’s mind, like “What’s driving cryptocurrency prices higher?” and “Why is the crypto bull market just getting started?”
Plus, my team has set aside $100 worth of bitcoin per attendee. You can find out how to stake your claim in the most valuable cryptocurrency on the planet right here.
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