It’s Third Place for Bitcoin Cash as Support for It Grows Overnight

 

Bitcoin Cash

Bitcoin Cash is now ranking third among the top 10 cryptocurrencies, overtaking ripple and litecoin, but remaining behind ethereum and bitcoin.

Despite a slow start to the mining of bitcoin cash (BCH) yesterday, the new digital currency to hit the market has been showing some impressive figures.

At the time of publishing, and according to CoinMarketCap, BCH has a market value of $9.3 billion, putting itself comfortably in front of ripple, which has a value amounting to $6.67 billion in fourth place. Litecoin, currently in fifth place, has a market value of $2.2 billion.

Since the user activated hard fork (UAHF) took place at 18:41 UTC, yesterday, introducing bitcoin cash into the market, the total value of the cryptocurrency market now stands at over $100 billion. On the 1st August, the total was $91 billion. However, it remains to be seen whether the market will continue raising its value or if it will return to pre-fork levels.

As can be seen from the list above, bitcoin cash saw its value increase by over 74 percent over a 24-hour period. Over the past seven days, it had seen a rise of 41.53 percent.

Many had thought that once the fork took place, the price of bitcoin would be impacted. At the moment, though, that doesn’t appear to be the case. In fact, bitcoin’s price has remained relatively stable and is trading just under $2,700. Within the past 24 hours it’s had a slight dip in value and is down 0.32 percent, but over the previous seven days, its value increased by 7.87 percent.

First Block Mined

Yesterday, at 12:20 UTC, the community waited with bated breath for the fork of bitcoin cash to occur. However, it wasn’t until six hours later that the first block was mined. Data from BlockDozer showed that the first mined block came from ViaBTC.

Block 478558 effectively showed a clean break from the bitcoin blockchain and signalled a new start for a new digital currency.

Even though it signalled a new start for bitcoin cash, it wasn’t a fast start for it. So much so, that the price of bitcoin cash dropped to a low of $217 around 20:05 UTC. Now, though, it’s currently trading at $562; however, its price soared to a high of $757 before it tapered off.

It’s likely though that the price of the coin will rise and fall drastically over the next few days and even weeks as the market determines the exact value of it. Not only that, but many people may not have claimed their coins yet, which may play a factor in its future price.

Scaling Issues Solved?

Interestingly, the information from BlockDozer shows that the block contained 6,985 transactions with a block size of 1.915 megabytes. This is nearly double what bitcoin can handle at the moment, which is one of the reasons why the fork occurred in the first place. Before the UAHF took place, advocates of bitcoin cash stated that they would upgrade the transaction capability from one megabyte to eight.

It appears that it may have solved bitcoin’s scaling issues, but current prices for bitcoin show that it hasn’t been too badly impacted from the introduction of bitcoin cash.

However, the community will continue to watch the market to see exactly what will happen to its price in the future.

 

Many think, though, that with huge support behind the SegWit proposal and the upgrade to bitcoin, it won’t lose too much of its value. For SegWit, there is 100 percent support from the bitcoin mining network while 88.8 percent support SegWit2x.

According to Rob Viglione, co-founder of ZenCash, he thinks that in the end ‘most participants in the ecosystem will be upgrading with the BIP 91 activation for SegWit2x.’

However, Ryan Taylor, Dash Core CEO, stated that there are several issues that remain with bitcoin cash.

He said:

First, Bitcoin Cash has not solved scaling. It has merely kicked the can down the road with slightly larger blocks, but still lacks a credible technology to scale to massively larger numbers of users. Second, Bitcoin will retain the network of integrated services that make the Bitcoin network useful to businesses and consumers. With no substantial enhancements compared with Bitcoin, Bitcoin Cash is unlikely to be integrated into those same services, given the substantial expense for businesses operating them to do so.

Rejection of BCH

Since the announcement of bitcoin cash there have been many for and against it. On the bitcoin cash website it lists a handful of exchanges that will be issuing it, including ViaBTC, Kraken, Bitfinex and Huobi.

Interestingly, enough, one of the largest digital currency exchanges not supporting it is Coinbase.

In a recent report, it was detailed that the San Francisco-based digital currency exchange had no plans to support the new currency.

According to David Farmer, director of Biz Ops at Coinbase, he wrote in a blog post that:

In the event of two separate blockchains after August 1, 2017 we will only support one version. We have no plans to support the Bitcoin Cash fork.

He added that the exchange had reached this decision on the grounds that it would be hard to determine how long the alternative coin would survive and if it would have a future market value.

However, for many of Coinbase’s customers’ who wanted to remove their coins where they could access both BTC and BCH, they faced 12-hour delays. As such, many may have missed the 31st July deadline to remove funds by and the chance to make a bit of extra money on the side.

Aside from supporting bitcoin, Coinbase also supports ethereum and, more recently, litecoin.

Three of India’s top digital currency exchanges have also revealed that they won’t be supporting bitcoin cash. These are Coinsecure, Zebpay and Unocoin.

In three separate announcements, each said that they wouldn’t or had no plans to support the new digital currency on their exchanges and that they would be halting services for a few days after the fork to keep users’ funds safe.

Japanese exchanges also halted their bitcoin services in the lead up to the fork; however, while many resumed their services, it’s believed that some would put a halt on them again to cover any unforeseen glitches along the way.

Featured image from Shutterstock.