Blockchain is the technology that underpins cryptocurrencies like bitcoin. The main problem of primary blockchain operation was scalability. The original Bitcoin code had a maximum limit of 1MB of data per block, or about three transactions per second. In order to speed transactions hard forks were implemented.
The main peculiarity of hard fork is creation of new cryptocurrencies, Bitcoin Cash was one of them, appeared on August 1, 2017.
Yesterday price burst led Bitcoin Cash to become the second-largest virtual currency by market value after Bitcoin. Vitalik Buterin, co-founder of Ethereum Vitalik Buterin shared his opinion and congratulated Bitcoin Cash backers on Twitter.
— Vitalik Buterin (@VitalikButerin) November 12, 2017
Today’s drop of Bitcoin Cash returned its nearest rival Ether to the second place.
It should be added that Bitcoin hasn’t incur losses and is trading at $6250, according to CoinMarketCap. However, Bitcoin tendency isn’t so optimistic for last four days as it lost 20% since it new peak at $7750 on Thursday, November 9, 2017.
The main reason of yesterday considerable growth of Bitcoin Cash was cancellation of new hard fork named SegWit2x.
This news led mines who supported SegWit2x to focus on Bitcoin Cash. Some experts foresaw unsustainable and shot-term growth of Bitcoin Cash from the beginning.
“This Bitcoin Cash price move is far too fast to be real or sustainable. If it was built on fundamentals, earned over period of time, ok. But there is no weight yet behind Bitcoin Cash: virtually no users or businesses, nothing outside of hash power & pumped price. Bitcoin Cash will correct very painfully soonm,” Xapo President Ted Rogers said.
The second derivative of Bitcoin, called Bitcoin Gold (BTG), was formed as a result of another split last month.
Recently Bitcoin Gold has appeared at cryptocurrency exchange after the developers have finally published the software for the cryptocurrency. Bitcoin Gold dropped by 36% yesterday. Its decline has continued today’s morning and the digital currency is currently trading at $266 according to CoinMarketCap.