Ever since exchanges started to introduce Bitcoin Unlimited tokens, their value has been dropping greatly. That is not entirely surprising, considering all BTU tokens will be considered to be altcoins. One thing’s for sure: anyone who firmly believes BTU will overtake BTC should buy up these cheap tokens right now. Then again, it is doubtful anyone would be willing to go that far.
BTU Tokens Become Less Valuable Over Time
If there is one thing to take away from the whole Bitcoin Unlimited debacle, it is how things are not always what they seem. While BU has more mining support than SegWit, it lacks node and economic support. Moreover, if BU were to create a bitcoin hard fork and split off, its native currency will be BTU rather than BTC. In every imaginable way, Bitcoin Unlimited will be a second-rate bitcoin at best.
Both the Bitfinex and HitBTC exchange platforms have added support for BTU tokens already. On Bitfinex, Chain Split Tokens are created, to determine the value of individual Bitcoin Core and Bitcoin Unlimited tokens once a split occurs. So far, it appears the Bitcoin Core tokens are in the clear lead. In fact, one could argue the BTU token value continues to decline as more time progresses.
This trend goes to show having the support of a few mining pools will mean very little in the future for Bitcoin Unlimited. With the BTU tokens valued at under 20% of the current BTC price, things are not looking all that great. HitBTC even had the BTU price at 0.1016 BTC in the past 24 hours, which is even less spectacular. So far, it appears there is very little market demand for BTU tokens, other than by the Bitcoin Unlimited supporters.
At the same time, anyone who believes BTU will ultimately succeed could gain a lot from snapping up these tokens at such a low value. Assuming the value of BTU increases over time – which seems very unlikely, mind you – they can effectively double or even triple their holdings’ worth. However, with BTU still being labeled as an altcoin, there is very little reason for investors and traders to buy into this token. Liquidity of these tokens may not be a problem, even though most people will look to dump them at any price they can.
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.