Bitcoin Cash Is Now The 3rd-Largest Digital Currency After 100% Junp

Tyler Durden's picture

Bitcoin cash has existed for barely 24 hours. Yet its price has doubled as an increasing number of digital currency exchanges have enabled trading in the bitcoin twin, making it the new third-largest cryptocurrency by market capitalization (supplanting Ripple).

Bitcoin cash, which started trading yesterday on the Chinese exchange OkCoin at $270 a coin peaked above $900 early Wednesday before retreating to $660 in recent trade. Bitcoin cash’s performance shows that torrid demand for digital currencies hasn’t been affected by the SEC’s ruling that ICOs must now register as securities. Bitcoin cash was created after a small group of bitcoin users who rejected a competing proposal to update the bitcoin software opted to "fork" bitcoin into two separate digital currencies with slightly different features.

Bitcoin Cash

Bitcoin

But some analysts are saying that relatively thin trading volumes are distorting bitcoin cash’s price. Bitcoin users received free bitcoin cash as part of the split, but are having trouble accessing the coins as exchanges scramble to update their wallet software.

“We just had the fork 24 hours ago. Price discovery in these markets isn’t optimal because you can’t withdraw bitcoin cash yet. The exchanges haven’t figured out their wallets. It’s a super illiquid market. I wouldn’t read into the price of bitcoin cash just yet,” said Chris Burniske, former blockchain analyst at ARKInvest and author of the book “Cryptoasset.”

The rise in price could also be due to a “wealth effect” brought on by the launch of the new currency. As part of the network split, all bitcoin holders received a sum of bitcoin cash. But investors needed to have their coins stashed on the right exchange, or possess a certain degree of tech savviness, to access those coins, said Charles Hayter, CEO of CryptoCompare.

“Bitcoin and BCH should see negative correlations. Perhaps the hold up on bitcoin and rise of BCH has been the thin supply of the latter,” Hayter said.

Hayter published an explanation of how bitcoin cash works and how it differs from bitcoin on his website, CryptoCompare.com.

“Bitcoin Cash (BCH) is a hard forked version of the original Bitcoin. It is similar to bitcoin with regards to its protocol; Proof of Work SHA-256 hashing, 21,000,000 supply, same block times and reward system. However two main differences are the the blocksize limits, as of August 2017 Bitcoin has a 1MB blocksize limit whereas BCH proposes 8MB blocks. Also BCH will adjust the difficulty every 6 blocks as opposed to 2016 blocks as with Bitcoin.

 

Bitcoin Cash is a proposal from the viaBTC mining pool and the Bitmain mining group to carry out a UAHF (User Activated Hard Fork) on August 1st 12:20 pm UTC. They rejected the agreed consensus (aka BIP-91 or SegWit2x) and have decided to fork the original Bitcoin blockchain and create this new version called “Bitcoin Cash”. Bitcoin Cash can be claimed by BTC owners who have their private keys or store their Bitcoins on a service that will split BCH for the customer.”

Some investors are looking at last summer’s split between Ethereum and Ethereum classic for clues to how bitcoin cash might trade. Ethereum classic has consistently traded at a small fraction of the price of its more popular twin.

Ethereum (12 Months):

Ethereum Classic:

Will the same dynamic play out with bitcoin? Investors should have a better idea as some of the technical issues are resolved during the coming days and weeks.
 

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Raffie's picture

Go LITECOIN...

Jim Sampson's picture

Money for nothin and chicks for free...

Looney's picture

 

Bitcoin cash has existed for barely 24 hours. Yet its price has doubled

Intrinsic Value my ass!   ;-)

Looney (just yankin' your BitChains)

FrozenGoodz's picture

... cause no one can sell it ... exchanges not accepting deposits ... illiquid P&D

Herd Redirection Committee's picture

It was all about not adopting SegWit2x.

Its not even the specifics, its the precedent of these actions that gets me.  Seems like there will be 8 Bitcoin clones (not including other cryptos) within the next 2 or 3 years.

Eager Beaver's picture

That's already happened, several times. Litecoin, for instance. Anyone can clone it, it's free, and specifically designed to do just that. It's how these systems work, it doesn't detract from their utility, it also doesn't mean anyone is going to use it. Back in my hospitality days, a certain hotel chain I worked for "cloned" an airline's reservation system and then hacked it into what they needed it to be. They didn't detract from one another, they complimented each other, and you've probably had your name in both their systems, maybe even at the same time, unless you've never traveled. 

http://mapofcoins.com

38BWD22's picture

I traded in 15% or so of my BTC for Au on July 30, as I had no idea what would happen...

But, I had to go with jmbullion.com as Provident did not accept BTC payment anymore, hmm......

Ramesees's picture

ZeroHedge is almost entirely a cryptocurrency and apocalypse porn blog now. 

Herd Redirection Committee's picture

ZH is a mirror of the world around it...

I_rikey_lice's picture

99.99999% of people don't give a shit about cryptos so.....not really a mirror of the world

I_rikey_lice's picture

Wrong. 

Cryptos that exist today will never be adopted by regular people. If the central banks create their own cryptos to replace currencies then they will be adopted. Regular people will never have to worry about forks, miners, hash rates, shady exchanges......all the bullshit that is associated with cryptos today. You guys are loading up on 8 track tapes while the central bankers will release digital audio with their cryptos when they are ready.

Eager Beaver's picture

I used to have these conversation with retards in the 90's about debit cards. Time will tell sweety, time will tell.

Golden Phoenix's picture

And Paypal. People used to say it was only for criminals and would just go *poof*. Same shit different day. Some people never learn.

OpenThePodBayDoorHAL's picture

Yeah, I can't wait for BitcoinReallyNoNoReallyThisIsTheRealOne.com

Meantime they're also forking the periodic table of elements, next week element 79 will have its first fork, AUX. It's run by some shady-as-fuck guys based in The Isle of Man, they make it in their lab there, no need for all that exploration and digging dirt. To the moon! 

tmosley's picture

Why are you so opposed to having a lot of choices when it comes to money? Perhaps you would be more comfortable in a communist dictatorship. 

Raffie's picture

So Russia, China, India, Japan and other countries who are deep into cryptos only account for %0.00001 of the world?

 

Ramesees's picture

I agree - crypto is incredibly interesting.  It's just funny the way it went from being annoying to talk about (I got shit for talking about it at parties in 2013) to being the lead story every day on Bloomberg, CNBC, and having absolutely everybody talking about it.  

I've already had the "shoe shine guy asking for stock tips" moment several times over - Uber drivers asking about crypto, my 70 year old father buying Bitcoin and Ethereum, etc. 

And it all keeps going up.  It's hard to know whether we're at the Bull Trap or Bear Trap phase of this bubble.  

Eager Beaver's picture

Yeah, I was buying in 2012, while everybody was pumping metals. Guess who sold you all those $50 silver rounds?

nope-1004's picture

Bitcoin cash was created after a small group of bitcoin users who rejected a competing proposal to update the bitcoin software opted to "fork" bitcoin into two separate digital currencies with slightly different features.

And there you have it.  An "open and free monetary system", but...... controlled by a few individuals?  Stop the bullshit lies that this platform is free for all and controlled by no one, you bigcoin boobs.

 

Zero_Ledge's picture

They should fork it a few more times, then there will be lots more bitcoin, and also the price for each will triple in a week.

Oh, wait.

 

Eager Beaver's picture

Stop pretending like you know what you're talking about, fucking FUD spreaders.

Jubal Early's picture

"Stop pretending like you know what you're talking about, fucking FUD spreaders."

Haters gonna hate.  Fud spreaders gonna spread Fud.  Pretenders gonna pretend.  Those are what some people call "arguments".

What I like about this fork is how bitcoin cash managed to steal all the thunder from the seg-dipshits who now have invested all their time and effort to see the price fall flat... while BCC rises by thousands of percent.  This just sweeeeeeeeeeeeet.  Maybe the companies sponsoring their programming hours will start to cut back on the cheese.

Eager Beaver's picture

Interesting ride, eh? We'll see where and how the dust settles on this one, all emotion aside, from a purely technical perspective, they should have done this years ago, instead of arguing about it. Now we all have to deal with this.

Jubal Early's picture

Who is Satoshi Nakamoto?  We really need to know.  I don't think bitcoins rise is the result the efforts of some lone japanese nurd.  Its like a false flag, but the lure of easy money prevents anyone from answering the question.

Eager Beaver's picture

I wonder that too, I wish I knew. Why hasn't any of the pre-mined BTC moved from his wallet? He's not me, unfortunately, I know that. While I'm suspicious too, it's in my nature, especially these days, to question everything. Blockchain technology is an incredibly clever design, there is no "back door", there is only one way to cheat Bitcoin, do you know what it is?

apocalypticbrother's picture

Satoshi was the dude MIC contracted to create bitcoin/blockchain. He wrote the code. Nsa has the backdoor...

Advoc8tr's picture

Exactly the opposite ... a few wealthy people couldn't get their way with the decentralized BTC so they had to fork and start their own.  The BTC platform is not and cannot be controlled even by a guy with 130,000 BTC and his own exchange.

Golden Phoenix's picture

Note the term 'users'. If the community likes it they'll keep it. If they don't they'll sell it into oblivion. In any event they got it for free and who doesn't like free stuff? You do realize people get airdropped all kinds of free stuff just for having bitcoin, right?

tmosley's picture

A few people got together and made a fork. That doesn't mean they control everything.

YOU could make a fork.

Try doing that with dollar based assets. Try to start your own gold mine.

This is the freest market that has EVER existed and you're sitting there missing it.

GoldVu's picture

The problem with unbacked cryptocurrencies is that they can be too easily forked.

If you want the currency to be adopted by retailers and truly used for transactional purposes, it has to exist for reasonable length of time before falling out of bed.

Businesses need to have confidence the currency they just accepted isn't going to have issues.

Businesses (and most people) don't like uncertainty and their tax man won't care in the slightest. If you owe them money then it's your problem if your wallet isn't worth anything or you can't realise it into their legal tender...you pay up or get wiped out.

That's why cryptos are being predominantly being held as speculation for profit, not to assist with transactional purposes. Bitcoin (BTC) only has a velocity of 4% (including the new coins being added) - any currency with a velocity that low is not a true transactional currency.

Compare that to physical gold & silver - has been accepted for over 5000 years and people still accept it, even in our nacent digital world.

BullionCoin is the next generation digital currency that is 100% backed by vaulted gold & silver bullion on a 1:1 basis.

It's digitised titles of ownership to the vaulted metal which is why you can withdraw the gold & silver from the vaults with your BullionCoin as and when you want!

BullionCoin isn't going to fork because doing that will debase/devalue the coin causing the 1:1 ratio to fail.

Why go for any cryptocurrency that can fork any time it wants? Why go for a cryptocurrency if it doesn't have any intrinsic value backing them?

I don't see why the choice is so difficult between an asset with a 5000 year currency track record of being beyond the control of governments with guaranteed anonymity, that is now digitised, vs a cryptocurrency that can't keep itself in its pants for more than a few years at a time?

People are trying to over-reinvent the wheel too much whilst refusing to consider that unbacked currencies have a proven 5000 year history of not working, whether it's fiat or crypto.

ThaBigPerm's picture

Good.  I was waiting for a good sign to finally sell my shares of South Sea

City_Of_Champyinz's picture

Well if this is any preview the next 8 times it splits and doubles in value will make me rich, right?? 

Golden Phoenix's picture

Could be. Lots of users stating they got $40,000 or more free yesterday just for holding bitcoin.

East Indian's picture

Many exchanges are trading it. It can be sold. 

 

The real reason is a majority of people are yet to collect their bitcoin cash. BCC is issued free 1:1 for your bitcoins. The fork was at 12.20 pm UTC on 1st Aug. If you had 1 bitcoin in your wallet at that time you are entitled to 1 bitcoin cash. 

Here is how to claim your BCC:

1. You must hold your BTC with you (paper, soft or hard wallet) - let us call this first wallet

2. create another (second) wallet and transfer all your BTC to the second wallet. now the first wallet is empty

3. Then download a BCC compatible wallet 

4. Use the seeds of the first wallet to create a BCC wallet

5. It will automatically import the BCC within 30 minutes!

If your exchange is trading in BCC, you have to do nothing. The BCC will be automatically credited into your account; if your exchange is not trading it, bad news - they have pocketed your BCC!

SethPoor's picture

What is intrinsic value of your ass?
Did your ass double in 24 hours ?

Looney's picture

 

Too funny! (and a little creepy)   ;-)

Looney

SoilMyselfRotten's picture

Annnnd then a 50% pullback

Manthong's picture

 

Bitcoin cash…

Kind of like  

..digital silver

..gold derivatives  

….genuine fiat

.. or airsoft bullets

Eager Beaver's picture

Here's the difference.

One goes up, then down, then up.

One goes up, then down, and stays down.

One goes up, then stays up.

One is for pussies, who won't own real guns.

Can you spot which is which?

HRClinton's picture

"Money for nothin and checks for free..." - The Fed

FIFY

The central planners's picture

Go bitcoin crash the next ICO.

Latitude25's picture

See those nice gold coins with a B on them in the picture?  Now forget about them.  Bitcoin is not gold.

Gordon_Gekko's picture

Yeah, shit painted with gold does not make it gold. These bitcocksuckers claim shitcoins are better than Gold, yet they depict shitcoins as if made of Gold. Fucking hypocrite morons.

Raffie's picture

Maybe so, but why can we buy PM with cryptos if they worthless?

Latitude25's picture

There's a sucker born every minute.

funthea's picture

Yes, there is.

And just because it never gets old... here you go.

Tra la la la la   https://www.youtube.com/watch?v=RUaYbfKZIiA

slightlyskeptical's picture

Damn. Thought it was hot when it traded up over $900. now I am down 33% in just a few hours. I sold and bought regular bitcoin instead.