What happened to the Bitcoin Cash price?
Bitcoin Cash [BCH], the alternative bitcoin version, surged from US$300 to almost US$1,000 from late last week. It’s now trading at US$730.02 according to Coin Market Cap.
Why did it surge?
The controversial fork benefitted from strong buying on South Korean exchanges. The volume of trades rose from US$106 million on Wednesday to over US$4.4 billion on Saturday.
After stagnating interest in the first two weeks of its existence, the bitcoin offshoot began climbing late last week after digital currency ‘miners’ on Wednesday mined an eight-megabyte bitcoin cash block. That demonstrated bitcoin cash could fulfil its promise of faster transaction speeds, which is determined by block size.
The original bitcoin has a one-megabyte block size and is set for an upgrade to a two-megabyte block this fall.
What next for Bitcoin Cash?
While it remains to be seen whether BCH can attract widespread exchange and miner support to develop its own economy, today’s evidence suggests it may be on its way to doing so.
The gains in BHC’s price and built-in protocols that gradually reduce the difficulty of mining the digital currency have made the offshoot more attractive to miners. Bitcoin cash is now 69% more profitable to mine than the original bitcoin, according to data analysis from Coin Dance.
Crypto Analyst, Money Morning
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