On January 14, one of the forks of bitcoin grew 40 times, and immediately fell. What is the currency – Bitcoin Diamond, than it differs from the classic bitcoin, and what caused such a price spike.
– Unlike bitcoin –
Bitcoin during the existence of several times divided into other crypto-currencies. The most successful fork is Bitcoin Cash. Today, BCH ranks fourth in terms of capitalization among the Crypto-currencies and the second – at a cost. Other forks, such as Gold and Diamond, were less successful.
Technically, Bitcoin Diamond differs from bitcoin in that the miner can choose the block size himself – a special X-13 algorithm is used for extraction. This simplifies the mining process and makes it possible to mine on home video cards. Also, the algorithm is protected from the destruction of coins.
– Why did Diamond take off? –
In practice, Diamond is rarely used for payments (although it could, because the commission is significantly lower than that of Bitcoin). Diamond is used solely for earnings on speculation. There is no foundation for active users, which would keep BCD from jumping.
Why Bitcoin Diamond, and why today, can not be said for sure. Probably, these are coordinated actions of several largest Diamond traders. According to the main version, this was done by Asian investors.
By agreeing with each other, they could play a pump-and-dump strategy (investors simultaneously buy a large amount of the popular crypto currency in large quantities, stuffing it with a price, and then abruptly withdraw from the auction).
The strategy is used everywhere, but never the effect was so strong. Forty-fold increase in the daily rate is the absolute record for all currencies for the whole time.
– Invest rationally –
Bitcoin Diamond has shown by its example that the rapid unfounded growth of a little-popular currency is a cause for concern. Buying tokens in the P & D process is risky. The Asian stock exchange Kucoin has already made a statement on this issue on Twitter. The administration of the exchange writes:
Today, on Kucoin, there has been a HUGE jump in the value of Bitcoin Diamond, we just want to remind users to invest wisely and control their deposits
You can “catch the wave” and have time to sell the coins before the discharge, or you may be late. The participants of the collusion are interested in the ordinary users showing interest in their goal, but only the participants of the collusion know at what moment to drop the course. You can not foresee this, so bidding during pump-and-dump is akin to playing roulette.
– The Future of Bitcoin Diamond –
Hardcore is rarely useful. Bitcoin Cash is an exception to the rule. Those who use crypto currency for payments, it is difficult to rebuild. People continue to use the classical currency by inertia, as it is more familiar and more familiar.
If the new protocols could be built into the block system , this would solve the problem. But the blockade works differently: to change the rules, you need to separate. Therefore, the most expensive and famous currency (Bitcoin) is one of the most technically weak.
It is unlikely that Diamond will break into the list of TOP-Crypto-currency. The growth of the rate was speculation. Crypto currency is of practical value, since it is technically superior to bitcoin, but because of its narrow scope, its value is low.
It is unlikely that the rate will fall to the previous level in the near future, but the correction will be harsh. Bitcoin Diamond is too little popular currency to hold high positions for a long time.
