Only a couple of months after hitting the crypto currency market, bitcoin cash (BCH/BCC), the forked altcoin from bitcoin has gained massive strides. From $800 on Nov 10, the value spiked to an incredible $1,856, according to CoinMarket Cap, a cryptocurrency data firm.
This noticeable shift in cryptocurrency sets a new twist to the bitcoin frenzy in recent times.Interestingly, the statement by Chinese bitcoin mining company, Canoe Pool’s head Li Ang that ‘Bitcoin Cash is Bitcoin now’ seems to have a ring of truth in it. The shift of billions in the cryptocurrency trading towards the new alt coin has made it rise to second spot usurping the coveted space held by Ethereum.
This rise in bitcoin cash value is the seen as the repercussion of the decision made by certain mining pools and businesses to stop Segwit2X. Segwit2x is aimed at making changes in bitcoin software to increase the block size enabling faster transactions.
While some section of bitcoin developers welcome the move, many entrepreneurs and miners are worried about the negative impact it would generate.
Reportedly, suspending segwit2x will inspire users to migrate to more accommodating blockchains. And the sudden increase in bitcoin cash value has proved their suspicions true.
Strong support from bitcoin miners
The shift of mining hardware and funds from bitcoin to bitcoin cash is a sure indicator of the downward spiral of bitcoin. In fact many miners are already predicting its demise. Jiang Zhuoer, BTC founder and ViaBTC mining pool head, HapioYanghas believe that 2x supporters including investors and businesses are favoring bitcoin cash. Bitcoin cash in their opinion is more superior of the two.
Bitcoin based on block chain technology has been in circulation since 2008. Blockchain enables supreme accountability without any errors or missed transactions.
Its distributed ledger system helps in providing a very secure validation process and transparency, which has found useful application in supply chain management and other spheres of business.
And other than hacking incidents, which stemmed from bad intentions, bitcoin has remained on an upward spiral until now. This indicates its robust nature.
Bitcoin.com manager Jake Smith along with Roger Ver, investor and advocate of increasing block size feel that this new trend is not just a speculative shift that will pass away. This boost in value of bit coin cash can be reinforced by its increase in performance over bitcoin blockchain.
Bitcoin Vs Bitcoin Cash
Those who had lingering doubts about the stability of bitcoin will view the rise of bitcoin cash as a more robust platform, according to Smith. He further predicts that the backlog in bitcoin transactions will increase and also become more expensive. These two factors will further make users to migrate towards bitcoin cash with its better user experience.
However many bitcoin miners see the move as a manipulative one and that bitcoin cash being new to the market cannot withstand such a mammoth surge.
With blockchain technology making giant strides in all spheres, the rise in value of different cryptocurrencies is not surprising. And this trend is not a passing one. More deviations in cryptocurrency trading are expected in the coming months.