Ninjastic
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Board Bitcoin Discussion
Re: Will Bitcoin spinoffs devalue Bitcoin over the long term?
by
tiCeR
on 24/07/2021, 03:47:43 UTC
Quote from: velive08 on July 21, 2021, 11:06:31 PM
Quote from: Lee_Mire on July 10, 2021, 10:05:54 AM
Quote from: Abiky on July 09, 2021, 10:05:27 PM
After Bitcoin Cash split from the main Bitcoin blockchain, a plethora of other cryptocurrencies followed suit. First came Bitcoin Cash, then came Bitcoin Diamond, Bitcoin Gold, Bitcoin SV, and so on. Each fork is basically the same Bitcoin with an identical supply (21 million coins) and genesis block. What makes them different is their approach to scalability. Every Bitcoin fork that is created, essentially multiplies Bitcoin's total supply two or three times its size. This is sort of a double spend (although not in a direct manner). Imagine if we had 10 Bitcoin spinoffs, that means the supply will increase to 210,000! I'd bet if the Bitcoin Cash hard fork didn't happen, we'd still have only one Bitcoin (BTC) with a price higher than today. I'm still wrapping my head around this so please correct me if I'm wrong.

Do you think Bitcoin-based forks (spinoffs) will devalue the original Bitcoin (BTC) over the long term? If not, why? Don't we have too many forks already? Your input will be greatly appreciated. Thanks. Smiley

Yes initially, fork coins will take some market value from bitcoin. The amount of market share will depend on how much hype the coin has. But after a while the market share will consolidate back into bitcoin. To further understand this phenomenon look in to bitcoin dominance and how it oscillates cyclically against altcoins including forks.
the bitcoin market will still belong to bitcoin, although in the market there are many forks of bitcoin and the number is very large I don't think it can be like other coins that use the name "bitcoin" can win the hearts of 20% of genuine bitcoin fans to switch there. bitcoin is way above other fork coins

If they ever had a chance to devalue Bitcoin in any significant way, that change is long gone. Bitcoin Cash probably was the biggest threat in terms of devaluing the real Bitcoin as there was a vibrant discussion around certain specifications. The interesting thing about forks is that you keep your economic interest in the network that has been forked as well. If you hold BTC and you are pro BCH, you still have your BTC after the fork. Very interesting considerations here.