The Cryptocurrency Battle Continues Between Bitcoin And Bitcoin Cash For Number One Spot (2024)

Bitcoin Cash price surges, increasing it’s market cap and thus making it second most valuable cryptocurrency

With the SegWit2x hard fork called off, Bitcoin enthusiasts might be breathing a sigh of relief given the tremendous market disruptions which would have resulted directly out of the same causing magnanimous losses to users. However since the past few days, the Bitcoin radar had been focusing much on the resultant currency which was born out of the 1^st August hard fork. Since its launch, Bitcoin Cash (BCH) were dismissed by several market Moghuls but its recent value surge has allowed it to dethrone Ethereum in terms of market capitalization by crossing over $29 billion thus winning the slot of being the second-largest cryptocurrency in terms of market capitalization.

Although at the time of publishing this article, Ethereum regained the second spot. Bitcoin Cash was priced at $1156 with a market cap of

$19,422,711,220.

Various experts were of the opinion that the recent surge in Bitcoin Cash price was due to the SegWit2x supporters shifted base to Bitcoin cash following the hard fork getting called off. The ones against the hard fork were termed as 1xers since they wished to keep the block size within 1MB threshold as opposed to 2MB proposed by 2xers or supporters of the hard fork. The 2xers felt that hiking up the block size limit was mandatory since blocks had become full thus rising up transaction fees which did not much help out users entering into small transactions powered by Bitcoin. However in the weeks leading to the proposed split, Bitcoin futures market hinted that 1x coins have the potential to retain 85% of Bitcoin’s present value compared to 15% retaining by 2x coins. Eventually the 2x side decided to call off the hard fork causing Bitcoin price to reach record breaking figures the exact day when the same got announced.

Last Wednesday was a lucky day for Bitcoin holders. But Saturday painted a completely different scenario with the price of Bitcoin Cash shooting up as compared to Bitcoin which slumped down the ladder. Jacob Eliosoff, the manager of TreviDigital AssetsFund exclaimed, “What a plot twist. Right after 1x’s big day of glory, and especially after 1xers spent the last month talking about how the market would decide and was clearly validating them!”He also added that it is very natural that SegWit2x backers, “have nowhere to turn but BCH.

It’s not surprising that SegWit2x’s loss has been Bitcoin Cash’s gain.” Kyle Samani, the managing partner of MultiCoin Capital, penned down in a message that, “There were lots ofBitcoin Cash whales who were in early on Bitcoin who were waiting to see what would happen with 2x. 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.”

Samani shared that Multicoin had sold off BTC for availing BCH in the last 48 hours. He wrote that, “ideologically, I gave up on Bitcoin long ago but I’m a fiduciary now so I have to make money on the swings.”

Roger Ver who had been given the nickname of Bitcoin Jesus recently stated it out to Forbes via an email that, “Bitcoin Cash is useful in commerce, and therefore can also be used as a store of value.” While asked whether he was trying to shift the price level he said that, “of course not. No trader ever wants to be the one to move the price.”

CEO of Bitmain and Antpool, Jihan Wu wrote in WeChat that, “right now we have both BCH and BTC, but we believe BCH has more potential.” However he denied claims regarding the fact that his company has sold off Bitcoin to rope in more amounts of Bitcoin Cash during Saturday’s price gyrations.

Also Read:Bitmain, Bitcoin’s Biggest Techie To Release AI Chips And Computers

The price of Bitcoin Cash was considerably higher in Korean exchanges compared to the rest of the world thus indicating that it had a big role to lay in bringing about the price movement. Trading volume of Bitcoin to Bitcoin Cashwas up whereas that ofKorean Won to Bitcoin Cash was down in comparison to recent weeks.

The debate also focused on whether Bitcoin holds the potential of being treated only as a store of value like digital gold or both as a store of value and a medium of exchange like digital cash. Samani wrote that, “the OGs believe in Bitcoin as digital cash and not as gold, and they’re sick of core” while referring to Bitcoin core developers who had made the general mass believe that Bitcoin should mainly be used as a store of value and that Bitcoin blockchain should not be used in processing bitcoin transactions which needs to be earmarked against the topmost layer.

Bitcoin Cash operating at 10% of Bitcoin’s difficulty is also 2.2 times profitable to miners compared to Bitcoin thus paving the path for lesser transaction processing time. Eliosoff explained the scenario stating that, “as BTC loses hash, its blocks slow down, confirmations take longer, and of course fees spike up as we’re seeing now.” It might takes weeks to bring upon correction but that is more than enough for people to jump onto newer and better bandwagons such as Bitcoin Cash. Pools mining BitcoinCash presently are BTC.com, F2pool, BTC.top, Bitclub, Supernova, GB Miners, etc.

Bitcoin network’s transaction queue termed as mempool is already backed up by 139000 transactions which are waiting to get confirmed. As per Johoe’s Mempool statistics, the backup increased over the last three days following the 2x cancellation. Using Earn’s fee calculator on 11^th November, the transaction cost of average 22-byte stood at 155940 satoshis or $9.64. Various users are shelling out extra amounts for gaining quicker confirmation. The Bitcoin cash mempool has also been undergoing some recent activity with average transaction cost posed at $0.10-0.25. The coming week will surely be an interesting one with two of the biggest crypto magnets locking horns.

Also Read:Bitcoin.org Owner Desires To Change Satoshi’s Bitcoin White Paper

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