When a blockchain splits, the history of all transactions is – at that moment in time – identical across both chains. This means that holders of the legacy token now also hold the newly split token. In the build up to the Bitcoin Cash split in August 2017, investors pulled money from altcoins and Ethereum to pile into Bitcoin as a means to gain access to this new token which ended up on the market at $300. This rush to invest drove the price of Bitcoin from a low of $1915 on July 10th to over $2800 days before the split. This is happening again with the upcoming split to Bitcoin Gold and Bitcoin 2X, except this time around the date has been marked for a few months; as opposed to Bitcoin Cash which went from announcement to split in just a few weeks – catching many investors off guard. This longer period for preparation is still over a month from ending, and whilst the ICO market continues to decline as investors move capital into Bitcoin, Ethereum is rallying despite these Bitcoin “dividends” – and for good reason.
Ethereum is just a few days away from the first part of the network’s “Metropolis” upgrade. The upgrade, named “Byzantium” will be implemented at block number 4,370,000 (expected October 16th). Byzantium will achieve a number of outcomes, most notably for investors is the reduction in miner reward (inflation) from 5 ETH to 3 ETH as well as improved privacy for transactions. For full details see the Ethereum.org Byzantium announcement from October 12th.
The most anticipated developer conference in the calendar starts on November 1st in Cancun, Mexico. The full agenda can be found here and speakers will be discussing everything from Ethereum-based IoT and Raiden state channels through to the highly anticipated Casper and Proof of Stake consensus mechanism. Investor interest has typically spiked during these events as major network improvements hit the media.
Smaller tokens have taken an enormous hit in recent weeks. Regulation from China and rumbles from the SEC have put investors on edge resulting in a flight of capital from ultra high risk pennystock tokens into “safe-haven” (phrase used liberally) cryptoassets such as Bitcoin, Ethereum and Ripple.
The outlook for the price of Ethereum is healthy. A combination of network upgrades, inflation reduction and – each day – a move closer to proof of stake will have upward pressure on the price of Ether. The fear and divisiveness around Bitcoin’s hard fork will also be put to rest once the events unfold in mid-November, and the year could well close with Ether at a new all time high.