Over the past few years the increased value of Bitcoin and other cryptocurrencies has been fascinating for speculative investors. Those that got into Bitcoin just a few years ago have seen their investments increase by more than ten fold. While these proudcts have been very volatile over the past few years, it appears that the volatility will only increase in the future (https://www.cnbc.com/2017/08/01/the-new-bitcoin-cash-joins-the-market.html).
Bitcoin, which has been the leader of all cryptocurrencies, is making a major switch this week in which the company will split into two. It will now have the original Bitcoin product, but will also unveil a whole new product called Bitcoin Cash. The point of the move will be for the company to improve its capacity in the network and become more efficient when it comes to completing consumer transactions. Some believe the fact that it could be in use more in the future will create a whole new set of demands for it.
While there are some people that believe that the split will be a good thing for the young and growing business, not everyone is so sure. Some are concerned that the new product and asset will create a bit of a brand dilution for the overall company. The company is now providing two different products that are going in a different direction. There is concern that this will be confusing for customers that are afraid that they will invest in the wrong product.
At this point, it remains to be seen how the split will affect the overall price of Bitcoin. Most believe that there will be a lot of volatility over the coming months as the products will try to reach a stabilized price point. While this is a turning point for the company, and there is always a chance for a decline in the value, most advisors suggest that investors continue to hold their coins. Those that have already purchased Bitcoins prior to the split date will receive the new product for free and should be considered a dividend overall.