Will Bitcoin Fall as Bitcoin Cash Rises?
As of right now, Bitcoin remains the undisputed king of cryptocurrencies. However, there are signs that the coin, which for many people has become synonymous with cryptocurrency, may in for some new challenges in the form of Bitcoin Cash.
Over the weekend, Bitcoin Cash, which split from Bitcoin in August of this year, saw its value skyrocket to $2,500 a coin briefly surpassing Ethereum in terms of market capitalization to become the second most valuable from of cryptocurrency on the market. In the early hours of Sunday morning, the coin fell in value by about $1,000 before rebounding to about $1,525.
Prior to this rise, Bitcoin Cash was trading about $300-$500 a share so this was a strong weekend for the currency. Even Etereum’s found took to Twitter to congratulate the rival currency.
— Vitalik Buterin (@VitalikButerin) November 12, 2017
The rise of Bitcoin Cash appears to have come at the cost of its sibling currency, Bitcoin. Last Wednesday, Bitcoin was valued at more than $7,000, but, as of this writing, it is valued at little over $6,600. The current question is whether or not Bitcoin will continue to fall in value. As of right now, it is still the market leader, but some experts believe that Bitcoin Cash may supplant it one day.
“There were lots of Bitcoin Cash whales who were in early on Bitcoin who were waiting to see what would happen with 2x,”Kyle Samani of MultiCoin Capital told Forbes. “Now they’re making their move. They’re dumping BTC for BCH….I know many Bitcoin OGs who have dumped $10m+ of BTC for BCH … Turns out there were a lot more BCH ideologues than we all thought.”
One interesting side effect of Bitcoin Cash’s rise is that part of the reason it broke away from Bitcoin was because the owners of the project wanted to make cryptocurrencies more accessible to average consumers. Of course, as the price of Bitcoin Cash rises, its accessibility declines.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.