Bitcoin cash, the child of the mighty crypto currency Bitcoin was born on 1st August, 2017. Since then it has seen high volatility, agreements and disagreements, confusion among the industry giants for support or lack thereof, among the few.
So, why now? Why is it soaring high now?
Support. Support in the form of threats of lawsuit by customers to the giant exchanges like Coinbase should they(exchange) fail to provide them(customers) with equal amount of BCH(Bitcoin Cash) as they held in their account on 1st August.
There’s another support in the form of mining benefit. When Bitcoin Cash forked it didn’t have a lower difficulty than that of Bitcoin’s.
ViaBtc was one of the first pools to start mining BCH(Bitcoin Cash)
As Bitcoin had sufficient miners, it’s network difficulty reset faster and it was more profitable to mine, while for Bitcoin cash there were few miners hence it took significantly longer time to adjust the difficulty which occurs every 2016 blocks. But once it did, things looked better for the new crypto. In fact, this was going to happen as difficulty dropped on the BCH chain it was nearing mining profit parity and now things are in Bitcoin Cash’s favour which is currently, more profitable to mine.
You can check the current mining profit comparison between these two chains here.
As of today, It is 69% more profitable to mine on Bitcoin Cash blockchain and price of 1 Bitcoin is worth $ 4107 whereas Bitcoin Cash is worth $ 863.
Is Bitcoin gonna die?
No. I think that mining parity will stabilise over time. And both chains will succeed.
Imagine this: it is currently more profitable to mine the Bitcoin Cash so miners will jump to the Cash blockchain and Bitcoin’s difficulty will lower to a point where it becomes more profitable to mine whereas Bitcoin Cash’s difficulty will rise resulting in lower profits. This domino pair would continue until the parity is stabilized.
But that’s just how I think. And I may be wrong.
What do you guys think? Be sure to leave your suggestions in the comment box below!