Bitcoin Cash: More Profitable To Mine Than BTC, Overtakes BTC Trading Volume - What Are The Reasons?

in bitcoin •  7 years ago 


Bitcoin Cash is the currency that split from Bitcoin during the August 1 Hardfork.

When it was first created, it caused a lot of uncertainty in the crypto world - everybody was wondering what would happen to the Bitcoin price if Bitcoin Cash was established.
As August 1 came, many exchange platforms offered a 1:1 free Bitcoin Cash distribution for everyone who held Bitcoin in their account during that day.
During that time, the price spiked to its former all-time high of $727.
But it's no surprise that only shortly after, the price fell to about $200 as everybody was cashing out their free BCH coins.

The Bitcoin Cash remained at around $200-300 for 2 weeks - until beginning a meteoric rise on August 17.

Bitcoin Cash even reached an astonishing all-time high of $1091, breaking through the $1000 mark, before dropping back down to just below $800.

Reaching the $1000 mark was an incredible accomplishment - the whole crypto world was in shock and it comes to no surprise that many traders sold at that point and the price dropped right back down.


So what is the reason that Bitcoin Cash has been rising at such an incredible speed for the last few days?!

Like always, no one can really pinpoint the exact cause of this price movement - but there are a few scenarios that might have influenced the price.

#1 - Mining BCH is now more profitable than mining BTC

The most important factor to keep in mind when talking about mining is the difficulty. The difficulty gets adjusted frequently and measures how difficult it is to mine a block.
As the difficulty for Bitcoin Cash has dropped significantly but the price has more than doubled, it has actually become more profitable to mine BCH right now instead of BTC.

Currently, miners can make up to 50% more when mining Bitcoin Cash instead of Bitcoin.

But since Bitcoin offers more liquidity, it might still be more profitable to mine BTC. It depends on what the miner is looking for.


#2 - Exchange volume

For the first time ever, Bitcoin Cash has surpassed the exchange volume of Bitcoins.

On friday, its trading volume was on over $3 billion, while Bitcoin was on $2.9 Billion!
And this comes after being $744 one day prior, and even as low as $106 on wednesday.
This really shows the extremely quick rise of Bitcoin Cash within the last few days!


#3 Engagement from South Korea

The South Koreans have been crazy about Crypto this year - especially about Ethereum and Bitcoin, but apparently also about Bitcoin Cash.

The BTC/Korean Won pair dominated the trading market, and just under 60% of global bitcoin cash trade volume have been concluded in Korean Won from the 3 major south korean exchanges Bithumb, Coinone and Korbit.


#4 Faster Processing Speed

Bitcoin Cash miners managed to demonstrate that the network can support an 8MB block - compared to the 1MB block size of the original Bitcoin.
According to a recent CNBC Article this technological advancement is also one of the reasons why the BCH price has risen.

The faster processing speed makes it more attractive for Investors, as well as prove that there are substantial benefits to the currency.


What do you think - are there any other factors that have influenced the BCH price surge?

And how do you think the Bitcoin Cash price will develop in the future - is it possible that it will ever overtake Bitcoin?!




Images: 1, 2, 3, 4, 5, 6, 7, Sources: 1, 2, 3, 4, 5



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You noted some points but really missed a bunch of the story on Bitcoin and Bitcoin Cash - What's Going On?

very interesting points!

I wanted to get into bitcoin cash after the dump but it didn't get as low as I would have thought... now I just can't seem to pick a good moment to buy. Definitely not now though as it's being pumped like crazy.

But I believe bitcoin cash will be the silver to bitcoins gold. Bitcoin cash will become the crypto we will get to pay with worldwide for a while until the market matures.

But I'm doubting when it comes to long term revenue... should I buy bitcoin or bitcoin cash?

Really Awesome post !!

Thank you! appreciate it!

It's a tough decision, and I can't really advise.
I still think that bitcoin is a safe bet for long-term investments, but I can't quite estimate where bitcoin cash will go in the long run.

Great post @sirwinchester! I think that your analysis is on point.

Thank you! happy to hear that.

no reasons at all other then people trying to make it big on dumb things lol

It is the original blockchain. Some dumb thing?

ok, baghdad bob

What if you're just wrong?

I saw someone claim that they think bitcoin whales are manipulating the market from Korea, maby, hard to prove tho

There's something to that. There is politics of centralization at play, regarding Rothschild supported Segwit teams, if I understand correctly.

I hadn't heard of that, I'll look into it. Thank you for sharing

Hmm, interesting - it might be possible. But then I'm asking myself when they plan to dump...

really it was such a great post to read,,,loved the way you explained ....
looking forward for your upcoming post as interesting as this...

Thank you very much, I'm glad you enjoyed it!

Good read ! thanks

Please upvote meeeeee

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I'm glad you shared this info because i'm so fascinated by this story

Although the bitcoin cash is difficult to mine, I like it, and will continue to increase its value until it is close to bitcoin , good information friend @sirwinchester

There was a post a few days back by @penguinpablo that 92% of the BCH blocks are being mined by two miners only. Link at the below. So its possible that things are being manipulated but probably still unlikely. Hopefully the value change will attract new miners.

When BCH first came out I was skeptical because it was still an evolutionary improvement to the problem of scale-ability and cost compared to the developing altcoins and it appeared to be trading on name only. I wasn't going to sell because i got them for free anyway. I am glad that I held now and I might need a glass of water with that crow.

Link: https://steemit.com/bitcoin/@penguinpablo/bitcoin-cash-is-not-decentralised-92-of-the-blocks-are-mined-by-only-2-miners#@whitesj40/re-reddragonfly-re-penguinpablo-bitcoin-cash-is-not-decentralised-92-of-the-blocks-are-mined-by-only-2-miners-20170816t163025069z

Amazing review, I had so much fun reading it, bitcoin cash is a good currency, the reason it's rising is of cource people I think, more people will buy it more value it will have + a lot of people are advertising it like crazy. I think it's a kind of dump, it will go down again and it can never be like bitcoin.

So BCC should raise over 1000$ again?...

If more miners quit mining BTC and mine BCC, i think BTC could have some hard times coming, as mining BTC is more complex and less profitable... But i dont know what will happen...

In the words of Ice Cube: "Today was a good day".

Great post...
I am very interested in this post, after reading my knowledge so increase, hopefully I can continue to follow you, I hope we can continue to communicate through this community and will share information.

I have a new post that you may be able to see

https://steemit.com/indonesia/@ponpase/ayo-intip-keseruan-anak-aceh-di-kancah-nasional-rover-challenge-indonesia

a very informative post, @sirwinchester. I will be keeping an eye on this currency in particular as well as the South Korean investors - Intriguing!

Thank you! glad you liked it.
Yes, the south koreans are going crazy on the cryptocurrency market right now. We should definitely watch their trends.

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You wonder sirwinchester that bitcoin cash mining site is convenient?

Very interesting. good read.

Thanks for sharing!
Worth of upvotes and following!
Please follow me back! :)

Very Nice And Interesting Post..

Awesome bro we ahould invest in bitcoin cash and steem than other cryptocurrency