Friday, August 18, 2017

Bitcoin Cash Price Surges Past $500 Thanks to Insatiable Demand From South Korea

Various cryptocurrencies are getting their fair share of the upward momentum as we speak. Although most people don’t look beyond the Bitcoin price, there are plenty of other currencies and digital assets to take into account as well. Bitcoin Cash, for example, is going through a much-needed uptrend as we speak. After nearly a full week of hovering around the $300 mark, things are heading toward $500 and beyond.


It has to be said, not too many people gave Bitcoin Cash a fighting chance when the separate ecosystem was created. That is only normal, as many Bitcoin users felt this was an attempt at a hostile takeover. Making Bitcoin scale has been very problematic this past year, mainly due to different sides arguing over political reasons and their own reasons as to why specific implementations of a solution would not work as expected. The dust has finally settled, yet we have two different types of Bitcoin to contend with as we speak.

On paper, there is no reason why we can’t have two different versions of Bitcoin duking out over one another. Although Bitcoin Cash and Bitcoin are very similar, they aren’t identical by any means. The people running the Bitcoin Cash system have no vast development expertise on the same level as the Bitcoin Core contributors. Moreover, Bitcoin Cash has no SegWit activation or Lightning Network implementation. Instead, the supporters chose for a straight-up block size increase to 8MB. This will not necessarily be the final block size of that blockchain either, as tests are conducted to support up to 32MB if needed.

Whether or not Bitcoin Cash will fare better or worse than Bitcoin, is everybody’s guess right now. The Bitcoin network will see Segregated Witness activate, although its scaling capacities have never been tested in a live environment on the Bitcoin network. Should the scaling solution fail to clear up lingering Bitcoin mempool issues, it is not unlikely some people will default to Bitcoin Cash. After all, making Bitcoin scale is one thing, but if the scaling solution still leaves much to be desired, things aren’t advancing by any means. We will know more in the coming weeks, as the activation will occur in the not-so-distant future.

All of this creates a very speculative environment as far as Bitcoin Cash is concerned. The “Bitcoin Altcoin” has successfully hit the $500 price mark for the first time in a while. Although BCH has not been around for all that long just yet, the Bitcoin Cash price drop from $1,100 to nearly $200 caught a lot of people by surprise. At that time, most users assumed that would be the end of BCH, but nothing could be further from the truth. Speculation on the future of the BCH price will become a lot more popular over the coming days and weeks, to say the least.

Looking over the exchanges, it seems South Korea is showing an incredibly high demand for Bitcoin Cash. Bithumb, the exchange which keeps surprising everybody every single week, recorded over $669m in trading volume for BCH/KRW. That number may not be entirely accurate, though, as it is five times as high as the second exchange on the list, which is Korbit. Then again, both Korean platforms, alongside Coinone in fifth place, generate the vast majority of BCH trading volume right now. It is surprising to see this altcoin get a trading volume of nearly $1.7bn in the past 24 hours, to say the least.

The rest of the world has to follow these exchanges and it looks as if fiat currency markets are taking a strong lead over the BCH/BTC markets right now. Bitfinex’s USD market is showing some strong volume as well, which is unprecedented for this market. Now that most people have dumped their coins, Bitcoin Cash may start to enjoy some real growth. At this rate, both Bitcoin and Bitcoin Cash will reach mining profitability parity in a few days from now. If that were to happen, all future bets and expectations can be thrown out of the window completely.

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