Bitcoin cash prices continue to soar, but will it stay?

in #blockchain7 years ago

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Bitcoin Cash had a rocky start. There was little hash power for the new cryptocurrency. Additionally the profits for mining the coin were pitiful in comparison to Bitcoin. However things are improving for the new cryptocurrency. According to Coin Market Cap, It is currently the third biggest crypto on the market with Bitcoin and Ethereum remaining as the market leaders. The price as of writing this was $665.42 with an 11.43 % price increase over the previous 24 hours.

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All Bitcoin holders as of block 478558 are now owners of Bitcoin Cash. Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate. Bitcoin Cash is the continuation of the Bitcoin project as peer-to-peer digital cash. It is a fork of the Bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow and scale.

There has been a surge of activity on Korean exchanges which has lead to the price increase. This increase of activity lead to an 86% price increase over 24 hours and put bitcoin cash in its current place on the market. Even though the cryptocurrency is seeing a lot of activity on the Korean exchanges it is being traded at a lower price than on other markets. On Korbit for instance bitcoin cash was being traded at $11 below what was being offered on Coin Market Cap.

Cryptocoinnews reported that when bitcoin cash first appeared, the blockchain was known to have high difficulty and slow block times. Originally Bitcoin was still far more profitable to mine than bitcoin cash. BCH miners were essentially mining at a loss. The miners either believe that the bitcoin cash would rise and become profitable or continued to mine based on their own personal beliefs. Consequently, the bitcoin cash hashrate lagged far behind that of the main chain. It was averaging only about 5% of the two networks’ combined hashpower. However, BCH mining profitability ticked upward until it eventually reached parity with BTC. Soon after, a decrease in difficulty, coupled with a Korean lead price surge, made bitcoin cash mining 240% as profitable as bitcoin. That gap has closed, but BCH continues to retain a 68% edge on the original chain.

The future of bitcoin cash is uncertain with some leading crypto experts suggesting that it will become unprofitable to mine. Some big mining pools have annouced that they will have services that automatically lets members mine to the most profitable chain.

I wrote this article: for https://proteusion.com/