Astonishing rise of Bitcoin Cash
One year only after its launch, Bitcoin Cash knows how to make a name for itself and to establish itself on this highly competitive virtual currency market.
This virtual currency, the confinement of a Hard Fork with Bitcoin, has a very important place into the market; to be more exact Bitcoin Cash holds the third position in term of market capitalization, with 58 billion to its credit. It is largely ahead of Litecoin and Ripple, but remains behind the two leader Bitcoin and Ethereum.
To learn more about Bitcoin Cash, it was created on 1st of august 2017, after a Hard Fork of Bitcoin Blockchain. It has almost a similar trajectory with the Bitcoin itself, until the month of august when it has started to fly on its own, having its own technical characteristics. Its supporters state that Bitcoin Cash is more developed than Bitcoin itself. According to Roger Ver, one of the biggest investors on the cryptocurrency market, there will be soon a BCH payment card.
Bitcoin Cash appears on Coinbase and the marketplace panics
After refusing to support Bitcoin Cash, CoinBase promised to offer this currency after all on its platform by the end of 2017. And this was a fact on Wednesday, 20th December. The famous cryptocurrency exchange platform has decided to add Bitcoin Cash to its available alternative currency catalog.
There was not too long before the market reaction, as in the same day the value of Bitcoin Cash has increased by more than 200%.
From a value of more or less 1600 USD, the price grow up to estimated at 3200 USD. This unexpected rise has created a turmoil within the platform, having to deal with the sudden amplified number of users.
It appears that the market was running out of cash to reply to all the orders. Thus all Bitcoin Cash markets were obliged to remain offline until the next day at 9h00 PST. Since then, all orders will remain “post-only”. This means that you can place an order but it will be executed only after one hour on average, just enough time for the return of liquidity.
This astonishing rise of Bitcoin Cash has had an influence on Bitcoin price as well, which has decreased drastically.
In addition to this general turmoil within the firm, there is a rumor going on that certain Coinbase employees and their relatives would have bought Bitcoin Cash long before its arrival to the platform. If this rumor will be confirmed, these individuals will be accused of insider trading offence.
In order to calm tempers all round, Brian Armstrong, the boss of Coinbase, has stated that an internal investigation will take place in order to find the guilty individuals involved in the offence, if the offence is confirmed.
As a little reminder, before the announcement of Bitcoin Cash launch, Coinbase has underlined in its statement that its employees do not have the right to make any transactions on the site for several weeks before the official notice. However the number of accusations is on the rise, as noticed on Twitter feeds.
Right after its launch announcement on Coinbase, the Bitcoin Cash price has increased to more than 3000 USD. Weirdly enough, GDAX – an exchange platform affialiated to Coinbase- expose a price of 9500 USD by BCH, when all trading transactions on the site were suspended.
Now, the Bitcoin cash stop to rise and it’s stable, around 2800$