Why bitbell bifurcation is different from “stock segmentation”


nnnMany experts in the interpretation of Bitcoin bifurcation will usually use the familiar “stock split” to fight for example, but in fact, this is not appropriate, because the two are not the same. This paper analyzes the difference between driving factors and management. But as to how the future of the two and the new coins will be, no one can assert that this depends largely on the future reaction of the market participants.n
nnTranslated by: Inan
nIf you are concerned about the bitmember bifurcation this week, you may often hear the term “stock segmentation” in expert interviews.n
nFirst, we must acknowledge that there are two types of publicly traded Bitcoin assets that have similar names and value propositions, even on some major exchanges.n
nIt is understandable that people want to use existing terms to explain emerging technologies. In fact, using the existing mental model to explain what we do not understand is likely to be very effective.n
nBut in terms of the problem of coin bifurcation, this comparison, while intentionally good, misleads the public. Because bitcoin bifurcation and stock segmentation are completely different.n
nThe difference is as follows:n
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nDriving Factors n
nStock Segmentation: The underlying motivation behind most stock divisions is to reduce the stock’s stock price and make it within the economic affordability of retail investors.n
nIn recent years the most well known stock segmentation event was Apple’s stock in 2014 “1 split 7”. Before the spin-off, Apple’s share price was around $ 700, when people often discussed whether their stock prices were too high. But the next few months the sharp rise in stock prices seems to quell the controversy. (At least the case of Apple is the case)n
nBitcoin: The reason for its split into two kinds of encrypted money is more complicated, but has nothing to do with the convenience of retail investors to buy.n
nThe key point is that long-standing debates have made the Bitcoin community disagree on the technology roadmap, especially in finding the best way to deal with the growing user base and trading volume.n
nBitcoin bifurcated, the price is still more than 2700 US dollars, almost the same as before. Bitcoin Cash This new asset is priced at around $ 200 to $ 450, depending on the liquidity of the exchange on the shelves of this currency. In short, these two assets now have two different values, each derived from their respective technical road map and support community.n
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nManagementn
nStock Segmentation: Broadly speaking, stock segmentation and block chain bifurcation have one thing in common, that is, it must be approved. Who is it for approval?n
nThe listed company is owned by its shareholders. These shareholders will elect the board of directors as their agent in the company’s management. The board hired the manager to manage the company. Boards and management often overlap, and they make decisions about matters that are critical to the operation of the company. (In theory, this makes the company a rational actor; but from a practical point of view, the effect is not so good.n
nOne of the most important decisions made by the management and the board of directors on the listed company is the composition of the capital structure, which belongs to this category.n
nBitcoin: Bitcoin is a shared account with no centralized or controlled value. There is no third party that verifies the accuracy of the value in the book, and there is no central authority to make a decision through a miner (or node) agreement, which is based on the channel’s predetermined threshold embedded in the code.n
nIn the case of bifurcation, each party must make a decision based on its best interests.n
nNow, some exchanges have been shelved Bitcoin Cash, while others are not. Some miners have begun to dig a new block chain. Some users are trading these two kinds of digital assets, because they can be freely transmitted around the world. In the past, when the need to cooperate in the send, and now, the decision is isolated, to personal interests as a criterion.n
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nSummary of ideasn
nStock Segmentation: A stock segmentation is a fundamental idea of ​​a company’s behavior that divides an existing share into more shares and does not change the assets represented by the shares. If you double the number of things and halve its value, then there is no effective way to change the underlying economy. (A $ 20 bill or two $ 10 bills, that’s more important to you?)n
nBut this is where the stock segment is really important, that is, no new entity is created. Business entities are well placed before and after stock segmentation.n
nFrom the operational point of view, nothing is added, nothing is taken away.n
nBitcoin: When Bitcoin Cash is separated from the bitcoin block chain, it creates a brand new Bitcoin Cash block chain. From this point of view, the two currencies will be traded with their own symbols. They will have their own transaction records from the time of division, and have different values.n
nBoth of which may fail and are likely to develop. This depends on the individual involved in the market.n
nETH and ETC have always been very popular situation implies that the market takes long to make a decision – if you can choose a winner.n

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