Published: Mon, November 13, 2017
Markets | By Rosalie Gross

Bitcoin Drops below $6000 as Bitcoin Cash Surges

Bitcoin Drops below $6000 as Bitcoin Cash Surges

Bitcoin cash split off from the original version of bitcoin in August as a minority group of developers chose to implement an upgrade in an effort to increase transaction speeds for the digital currency.

Still, it was an impressive march for a coin which has spent most of its existence trading between $300 and $500.

At the moment, Bitcoin Cash is more profitable to mine.

A continued lack of direct practical usability - people still really can't use their bitcoins for much, and transaction approvals still take too long. Ethereum founder Vitalik Buterin even chimed in on the news in a tweet late Saturday night to congratulate the coin's main backers.

Judging by news flow and sentiment alone, there seems more upside risk to Bitcoin Cash despite price having already rallied from around $620 to $2087 in four days, and at $1520 (the current price at writing) one questions if this "pullback" now a more compelling entry point. It hit a record high of $7,828 on Wednesday. But at 2:40 p.m. ET on Friday, it was trading down 7.2%, at $6,812.

Bitcoin Cash has been often derided in the past months, but first it proved its strength by surviving as an altcoin, and then serving to displace Bitcoin instead of the failed SegWit2X digital asset.

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Bitcoin Cash's transactions are processed in so-called "blocks" that are larger in capacity than bitcoin's, so can therefore in theory allow for more transactions to be processed at any given time, making transaction fees much cheaper.

The South Korean cryptocurrency community seemed to have invested heavily in Bitcoin Cash due to the sudden movement of miners from the original bitcoin blockchain to Bitcoin Cash.

"When you look at the trends, it does look like many Segwit2X supporters have switched to bitcoin cash", Abhishek Pitto, CEO of Nucleus Vision, told Business Insider.

In contrast to bitcoin, bitcoin cash boasts a block size of 8 megabytes with the ability to process transactions at a faster rate. "Turns out there were a lot more BCH ideologues than we all thought".

We've seen absolutely huge moves, with clients extremely active in Bitcoin and Bitcoin Cash.

"[Bitcoin cash] is just being pumped as many other altcoins have been in the past, and inevitably the pumpers will cash out", he said. That is a big "if" given Bitcoin Cash's current market cap is still just 25% of that of Bitcoin's $95 billion market cap.

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