Bitcoin Cash: first effects on the market after hard fork

8 years ago - Published in Finance, Fintech Land, Technical Analysis

A new digital currency called "bitcoin cash" (BCC), created by the splitting of the bitcoin blockchain, is rapidly rising in price despite lacking crucial support from parts of the cryptocurrency community. Bitcoin cash has secured its place as a top cryptocurrency within a day of entering the marketplace.

According to Coinmarketcap.com, the cryptocurrency is trading at about $490 a coin, and its market cap now stands above $8 billion. As such, it is the third-largest cryptocurrency by market cap, surpassing big-name coins such as Ripple ($6.7 billion) and Litecoin ($2.2 billion).

Bitcoin cash came to fruition Tuesday after it split from the original network that powers its crypto-cousin, bitcoin. The split was preceded by a multiyear war among bitcoin power brokers over the rules that guide the digital currency's network.

Supporters of the newly formed bitcoin cash believe the currency will "breath new life into" the nearly 10-year-old bitcoin by addressing some of the issues facing bitcoin of late, such as slow transaction speeds.

And it looks as if investors are singing the same tune. Bitcoin cash is up about 80% since its inception. That's a higher appreciation than any of the other top 10 cryptocurrencies.

Litecoin CEO Charlie Lee said not to be worried about Bitcoin split. In the interview with CNBC, Lee brushed off any worries regarding Bitcoin Cash’s coming into the picture of growing alternative cryptocurrencies. When asked about how Litecoin is playing into the mix, Lee said the split is not a big concern for Litecoin, but more towards the original Bitcoin.

“I don’t see it really as a threat to Litecoin and it’s causing more confusion to Bitcoin than anything" Lee said.

The new currency token, "bitcoin cash", was created on Tuesday when a section of the bitcoin community forced the blockchain (the digital ledger which records every bitcoin transaction) to split into two separate chains.

Everyone who held bitcoin before the split was entitled to the same number of "bitcoin cash" tokens, effectively receiving a free dividend.