Bitcoin as we knew it split into 2 Cryptocurrencies on August 1st 2017. A major event in the Crypto world as the debate over the technical side to Bitcoin’s upgrade lasted for months and the outcome so far is a game changer for sure. Today, we have a brand new Cryptocurrency called Bitcoin Cash and it is a direct outcome of this long lasting debate.
After writing about the potential of Bitcoin splitting and what investors need to know about the possible fork, today we will provide an overview of the first week in the life of this new Cryptocurrency as well as what’s happening with Bitcoin as their prices are definitely intertwined.
Bitcoin Cash’s price after the split
Bitcoin cash’s price reached a high of $727 on Wednesday August the 2nd and started falling afterwards. Among the reasons impacting the price action:
- The slow block creation pace. Bitcoin prior to the split had difficulty in this area and Bitcoin cash’s blockchain has a very limited mining power on top of that.
- Supporters of Bitcoin core selling their Bitcoin cash around the same time and putting pressure on the price of the new token.
- Many exchanges do not allow Bitcoin Cash trading or deposits yet. Coinbase didn’t even allow clients to retrieve the new coin. They are now facing major issues involving threats of legal action.
The chart below shows clearly how the price reached a peak on Wednesday and dropping since. Is the honeymoon already over? Possible.
Here are the 2 key factors we believe will make the biggest positive difference for this new Altcoin:
- New miners supporting therefore increasing the speed, security and reliability of the network.
- How the new increased Block size is going to enhance investors, developers and miners experience
Bitcoin’s price after the split
Bitcoin’s price held up pretty well before and after the split. As we can see from the chart below, it dropped slightly below $2500 and was able to make up the losses rather quickly during the same week. As Bitcoin Cash’s price keeps dropping, the opposite is happening with Bitcoin core.
The following charts by CoinMarketCap shows clearly the drop of Bitcoin Cash below $400 after the peak above $10B in market cap.
So far, it’s unclear if Bitcoin Cash is set for success of failure but one thing is for sure: The window for this new cryptocurrency to make a strong impression on investors and the Bitcoin community is very small and they need fast adoption by the players mentioned above as well as exchanges and wallets to survive.