On it's second day of existence, Bitcoin Cash is soaring!
As you likely have heard, Bitcoin Cash was created yesterday by a fork of the original Bitcoin code.
Out of the gates, Bitcoin cash immediately stumbled.
Opening around $300, it promptly fell down to the $200 level, before rebounding slightly.
However, things would start to change for Bitcoin Cash later in the day...
A couple hours after touching it's low, Bitcoin Cash started to rally, and rally it did!
Early this morning Bitcoin Cash rallied all the way up to $757 dollars per coin.
Yes you read that right, Bitcoin Cash rallied almost 300% off the lows:
Not a bad bounce eh?!
That would give Bitcoin Cash 28% of the value of Bitcoin. That is significant considering it traded for around 10-15% of Bitcoin's value over the last week or so in Future's markets.
What gives?
Well a couple things actually.
For one, the supply is limited as many exchanges are currently freezing deposits and withdrawls, for that reason it has made trading of the coin somewhat restricted.
There has also been a flood of demand over the past 24 hours from people that want to own a piece of Bitcoin Cash.
That could be a very risky purchase because if the infrastructure never catches on for Bitcoin Cash it could completely go away within the next couple weeks/months.
However, if Bitcoin Cash takes over as the Bitcoin of choice for market participants, it will go a lot higher than even this $700 dollar price...
Risk vs. Reward indeed!
Coinbase faces possible lawsuit?
It appears the higher that Bitcoin Cash goes, the angrier Coinbase customers are becoming.
As you may have heard, Coinbase decided they were not going to honor Bitcoin Cash or accept it on its exchange.
An activist group, which claims that Coinbase's decision is akin to a brokerage withholding new shares from its investors, warns that it will commence a class action lawsuit after August 15th if Coinbase doesn't release the Bitcoin Cash it obtained to it's customers.
I can't imagine the lawsuit gains much traction as Coinbase has already stated that they will release the Bitcoin Cash to customers if it ever allows trading of the coin.
As much was mentioned briefly in this blog post yesterday:
Sounds like Coinbase is covered to me!
Conclusions:
At this point your guess as to where Bitcoin Cash goes is as good as mine.
Many of the higher ups in the cryptocurrency industry don't really see Bitcoin Cash lasting more than a couple months. I am not sure I fully agree with them, but I am also not sure I disagree with them either.
For me personally, I am holding both my Bitcoin and the newly received Bitcoin Cash and just letting things shake out over the next couple weeks.
That strategy won't maximize my returns I am sure, but it also won't allow me to make a stupid mistake that I could be kicking myself for later on.
Let me know your plans for Bitcoin Cash in the comments section below.
*As of this writing Bitcoin Cash has started to correct again, now sitting at $470 per coin.
Stay informed my friends!
Sources:
https://coinmarketcap.com/currencies/bitcoin-cash/
http://fortune.com/2017/08/02/bitcoin-cash-lawsuit/
Image Sources:
https://www.coindesk.com/coindesk-explainer-bitcoin-cash-forking-blockchain/
https://coinmarketcap.com/currencies/bitcoin-cash/
https://www.coindesk.com/coinbase-granted-one-month-delay-cryptsy-lawsuit-appeal/
Follow me: @jrcornel
I have sold all my BCC (called BCH at Bitfinex). If that was a good or bad decision one never can really know in advance ... time will tell. Actually I am also somewhat angry that Bitfinex didn't grant me one BCC for every BTC ...
Unless I'm mistaken the power of BCC is in China which is the powerhouse behind BTC not the US? If it works faster surely it will take off and Coinbase will just look silly as they play catch up?
And now that the future has arrived it has crashed. Im not cheering for the crash, I held onto my Bitcoin Cash. Only time will tell if that was a good decision. The fact that Coinbase has added it now must say something about its value.
The power of BCC is its unlimited block size, simpler code-base, and zero fees.
I think it's going to soar for few days because most people have not been able to deposit their bitcoins on exchange and because of that they are not able to withdraw them and only buying is done for now. This is the reason why bitcoin is soaring and for a week or so it's gonna soar or at least be stable.
Anyways your explanation is good on this @jrcornel . thank you :)
I agree, it's only soaring because of people having issues accessing it. Once everyone gets their hands on it, I think there will be a big dump.
:)
I think it will dump and soon after it should pump. I believe this will create huge confusion and volatility
eeewww on the visual lol but yes I agree with you
For sure, it's gonna happen in few days.
It may or it may not. If I've learned anything about this market it's that there's just no predicting it. What if all these new BCC holders finally have access to their coins and they look and see, "Hey, Bitcoin is worth about the same, and now I have this new coin worth $600-$700 dollars, and oh, it touched a high of $1322 on Bittrex and, hm, it has the Bitcoin brand, if you will, well, maybe I'll just hold on to this."
Then people who have wanted to get in on Bitcoin and watched it soar see current prices for BCC as a huge value to get in on the Bitcoin name and they can purchase 4x the amount of Bitcoin that they could buy within their budget. Then the Bitcoin Cash network runs faster and smoother and becomes more desirable to use but the O.G. Bitcoin just continues to hold it down as store of value and they work in tandem on a savings/spending continuum and both rise together.
Who knows??!?!?
As expected, as soon as the depositing on exchanges were open it's not soaring anymore.
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Thx for sharing
I think it is funny that people actually think that Bitcoin Cash is just going to go away after a few weeks or a month. That is so dumb.
Clearly if it is more profitable to mine that people will jump over and mine it. Exchanges are going to have it so they can collect fees on transactions.
It has a large distribution. People are going to watch it. It is here to stay. Whether it drops to $100 or wherever. It is here for sure.
Don't forget, if even 20% of miners switch to Bitcoin Cash because its more profitable, Segwit-Bitcoin is going to slow to a crawl and you'll have to pay ridiculous fees to get a transaction through, which will lower the price, which will make more miners switch, which will add to network congestion, which will lower the price, etc, etc.....see where that goes??
Yeah it will be very interesting to see what happens in the next few weeks!
If the hardffork which created bitcoin cash actually solved the issues of high transactions fees and allows for faster transaction time, I do not see any reason for it to just disappear into obsecurity. I'll get me some bitcoin cash! All exchangers should support bitcoin cash. This is what we expect in a decentralize world: more freedom and more caos ! 😎
Great info,thanks!
Upgoat & Resteemed
If you're anything like me, you were nervous about getting your Bitcoin Cash without destroying your Bitcoin. I wrote a post to explain my experience with that. Perhaps you could give it a quick look and give me some feedback?
I think it will be just another altcoin, but I'm new in all of this.
That is why I sent people to read your post and figure it out better for themselves. Linked this in my last post.
Also 100% upvote here.
Cheers!
It can't be just another altcoin. It is actually an upgrade but , ** an upgrade ** that majority of the community did not agree to!
What crypto currency is better?