December 5th, 2017
Bitcoin Cash climbed by 17% against the dollar following the former’s integration to two other cryptocurrencies. Bitstamp, currently the 12th largest cryptocurrency exchange in the world, announced that it would be injecting Bitcoin Cash into its platform in December. Bitwalla, another major cryptocurrency, said that it would also allow its customers to hold Bitcoin Cash.
Bitcoin Cash’s prices are currently fluctuating at around the $1,520 price mark although the surge wasn’t enough to break its current record. The highest value that the cryptocurrency reached was $1,953.67, which happened on November 12.
Bitcoin Cash’s supporters claim that the cryptocurrency has been following the blueprint established by Bitcoin’s creator, Satoshi Nakamoto. In a tweet by one of the earliest backers of Bitcoin, Roger Ver, it was mentioned that Bitcoin Cash was structured after the original Bitcoin, and therefore should be acknowledged as a Bitcoin product.
Officially, Bitcoin Cash is different from Bitcoin Classic. Bitcoin Cash is a Bitcoin fork that uses a separate blockchain ledger and new standards. The idea behind Bitcoin Cash is to increase the number of transactions that can be processed because of its bigger block size. The Classic Bitcoin uses only 1 MB, while Bitcoin Cash uses 8 MB of block size.
Unlike Bitcoin Cash, the Classic Bitcoin is down by 5% against the dollar. The second most popular cryptocurrency, Ethereum, is also down by 0.02% against the greenback. Despite Bitcoin Classic’s setback, it still holds the highest value among all cryptocurrencies. FXCM states that the cryptocurrency’s value has significantly increased since its creation, reaching almost $3,000 in June 2017. Today, Bitcoin’s prices are at an all-time high, fluctuating at around the $8,000 price mark for the first time.
Bitcoin Cash’s current success can be attributed to the success of the Classic Bitcoin. In this phase of high demand where large-scale firms and global brands are entering the Bitcoin market, any cryptocurrency that is directly linked to the Bitcoin name will probably benefit from the exposure of the cryptocurrency in the mainstream media, as well as traditional financial industries.
The popularity of Bitcoin Cash is growing rapidly outside the U.S. In South Korea, Bitcoin Cash is seen as a byproduct of the success of Classic Bitcoin. Bithumb, the 2nd largest cryptocurrency exchange in the world behind Bitfinex, has been processing over $1 billion in Bitcoin Cash transactions every day since October 2017.
Bitcoin Cash now has a $10.4 billion market capitalization, currently making it the 4th biggest cryptocurrency in the world. Its trading volume reaches up to $344 million trades on a daily basis. The volumes, however, aren’t consistent as Bitcoin Cash also suffers from erratic trading behavior given the competition from other cryptocurrencies.
Recently, Bitcoin Cash’s blockchain added around 8,000 blocks more than Bitcoin Classic, thereby increasing its creation of monetary units by 100,000. Experts say that because of this move by Bitcoin Cash, it made itself susceptible to higher inflation. Big increases in supply normally have a direct pressure on the cryptocurrency’s price if the demand is not met accordingly.
The people behind the implementation of the Bitcoin Cash protocol, AKA Bitcoin ABC, unveiled plans for a hard fork early in November. The fork used an improved design that should solve the current technical issues surrounding Bitcoin Cash.
Bitcoin Cash has successfully defined itself as a low-cost substitute to Bitcoin Classic. This is one of the main reasons why its prices continue to surge. However, despite its friendlier costs, Bitcoin Cash’s operations are currently being plagued by an unstable network. Bitcoin ABC hopes to solve the issue in order to increase trader confidence.
If the team is successful with the implementation, the developers will effectively show the public that maintaining a cryptocurrency with a market cap of $10 billion is possible. A steady network allows itself to be available for further adoption, which is usually reinforced by a committed community.