Bitcoin cash is currently trading at $1,437.41, dropping by 42% since the past few days and just dropped by 17% in the last hour. Bitcoin cash was trading at $4147 on December 20th. In under 30 days the value has fallen to less than half. Bitcoin Cash had a market cap of almost $70 billion on 20th december, the current market cap of Bitcoin cash is less than half of that at $32 billion.
Bitcoin Cash was created because of fork in 2017. Bitcoin had the block size of just 1 MB, while Bitcoin Cash had an increased block size of 8 MB which makes the transactions cheaper and faster. Bitcoin Cash multiplied more than 4 times in value in the previous year. It started at $555 and ended 2017 at $2618.
“This is not unique in the cryptocurrency market“, says Huzefa Shaik a crypto enthusiast from Afghanistan, he continues, “I have been following the cryptocurrency markets since almost 2010 and at least twice in a year, every year, there are instances like this where the prices drop to less than 50% but then it picks itself up again and keeps climbing back to create historic prices. Bitcoin Cash is a coin which is significantly faster and better than Bitcoin, but the unfortunate thing is everything depends on Bitcoin prices.”
The creation of Bitcoin Cash caused a rift in the community. One group decided to stick with Bitcoin because it was the original one, the other group decided to go with Bitcoin Cash because it was way faster and cheaper. Bitcoin Cash was created because the community couldn’t come to a consensus about the increase of block sizes from 1 MB.
“Fees skyrocketed, and Bitcoin became unreliable, with some users unable to get their transactions confirmed, even after days of waiting. Bitcoin’s market price has increased, but its growth and usefulness as a currency has stagnated. Many users, merchants, businesses and even investors left Bitcoin for alternatives, causing its dominance to fall from 95% to as low as 40%.” reads the Bitcoin Cash website.
Bitcoin cash was created to solve these problems and was successful at it. “Bitcoin Cash immediately raised the block size limit to 8 MB as part of a massive on-chain scaling approach. There is ample capacity for everyone’s transactions” reads the Bitcoin cash website.
Carl Watene Njuguna, an active cloud miner from Kenya says, “The technology and future that BCH has is good, I just hope Bitcoin starts going up, only then everything else will start going up as well”
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