Bitcoin cash hard fork has brought with it a ‘crypto civil war’: Brian Kelly
Brian Kelly, a cryptocurrency fund manager & the founder and CEO of BKCM, recently shared that the sharp downturn of Bitcoin is because Bitcoin Cash.
Bitcoin cash is currently doing a “hard fork” or “effectively a software upgrade,” Kelly told CNBC on Fast Money. “When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing.”
He added, “So, we’ve got ourselves a ‘crypto civil war’.” Some are worried that bitcoin and bitcoin cash markets would have a “chaos” or the networks will slowdown after the software upgrade takes place. “People started selling. That triggered stops. Everybody got concerned,” Kelly explained. “And that’s what happened today — the entire market sell-down.”
However, Kelly believes it is a very short-term type of event. “I think it’s probably an opportunity…In fact, we did some buying at my fund today [Wednesday].” He also provided a warning for interested buyers, “If you don’t understand what a ‘hard fork’ is, do not jump into that pool right now. It is the deep end.”
The chief strategy officer at CoinShares, Meltem Demirors, who appeared alongside Kelly on “Fast Money” said, “I think all other assets that are not bitcoin are in the midst of a liquidity crisis…What we’re seeing across the board is asset prices are down 75 percent or more, in some cases 95 percent.”
“We’re now at a point where projects are running out of money,” Demirors warned.”They’re going to need to start firing employees. They’re going to need to cut costs,” she predicted. “You’re going to see consolidation, and some of these assets, inevitably, will get marked to zero.”
The world’s largest cryptocurrency, Bitcoin, saw a humongous rise last year when per coin went over $19,000 in December 2017. However, since then prices have gone down and at press time, it is trading under $6,000 per coin.
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