Bitcoin Cash Obliterates Other Cryptos, Rising 40% on Korean Buying

Gladys Abbott
November 13, 2017

The cryptocurrency market is experiencing a complex shakeup this weekend, with a recently created digital token called Bitcoin Cash (BCH) up almost 130% in two days, even after retreating substantially from an even bigger spike. Again, whether the shake-out and repositioning into Bitcoin Cash are over is something we shall watch with great interest.

The news initially sent bitcoin to an all-time high of almost $7,900 a coin.

Bitcoin Cash's market cap reached a high of $40 billion following the price rise - cementing its place as the second-biggest cryptocurrency, behind Bitcoin. That would make transactions cheaper and faster for users, but servers (also known as miners) more power hungry, risking unsafe centralization. In the past weeks, there were tentative signs of the event, but the weekend saw Bitcoin Cash fly above $1,500, while its network drew in more mining pools. It hit a record high of $7,828 on Wednesday.

Bitcoin has fallen in recent sessions after a software upgrade planned for next week that could have split the cryptocurrency in a so-called "fork" was called off due to waning support. But at 2:40 p.m. ET on Friday, it was trading down 7.2%, at $6,812.

The Segwit2x fork was created to increase capacity and the latest volatility comes amid a scaling debate. Backers thought the plan would help the digital currency scale faster.

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"You can see people playing back and forth between bitcoin and bitcoin cash trading depending on where they think near-term catalysts may be", said Chris Burniske, author of Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond.

As recently as September, Segwit2x was being touted as a strong solution to Bitcoin's years-long block size dispute. Their opponents believe that Bitcoin should be a gold-like "store of value" more than a cash-like instrument, and that congestion can be mitigated without drastically changing the size of archive files - mostly by using secondary systems to conduct more transactions outside of the main blockchain. But there is no weight yet behind Bitcoin Cash: virtually no users or businesses, nothing outside of hash power & pumped price.

The price of Bitcoin has suffered as a result.

The unprecedented uptrend in Bitcoin Cash prices is majorly supported by huge volumes coming from South Korea as miners who supported the SegWit2x are said to shift their focus towards Bitcoin Cash.

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