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article imageBitcoin cash soars as big brother bitcoin sinks

By Ken Hanly     Nov 12, 2017 in Technology
This is turning into a wild weekend for cryptocurrencies as bitcoin cash, the coin with larger blocks than bitcoin, is soaring in price while bitcoin prices dropped precipitously.
As discussed in a recent Digital Journal article on November 9, bitcoin avoided the hard fork that would have doubled the size of its blocks.
Some former bitcoin supporters may have bought bitcoin cash[
A number of supporters of the change to double the block size may have decided to sell off their bitcoin and buy bitcoin cash which already had increased its block size by 8 times.
Bitcoin cash was created by a hard fork in bitcoin that happened on August 1st 2017. The value was far below that of bitcoin.
Bitcoin's fall and bitcoin cash's rise
The website for the Canadian exchange Quadrigacx has excellent charts showing the present developments.
The chart showing the price of bitcoin over the last few days, in Canadian dollars, shows its steep decline just over the weekend.
There is a huge range between maximum and minimum prices with the maximum being $8,500 to a minimum of $7,600. As the prices are quite volatile the range may be quite different when you check the link.
Earlier on Sunday bitcoin had dropped as low as $5,600 US.
In contrast bitcoin cash has risen as the chart shows to a maximum of $3,500 (Canadian dollars) with a minimum of $1,700 dollars. The middle of last month it was priced at about $500 dollars.
Another competitor of bitcoin, litecoin, had been increasing in price but after the fork did not happen it lost value as shown on this chart rather than gain more as bitcoin cash has done.
Bitcoin's price may be stabilizing
Bitcoin or BTC appears to be regaining some of its lost value and was at $6,102 on Sunday morning according to coindesk after dropping to $5,600 US earlier in the morning as mentioned before.
Bitcoin had risen to as high as $7,850 last week from a low below $3,000 in September.
The sell off appears genuine as volumes of trading in bitcoin rose 61 percent yesterday.
Bitcoin cash has actually overtaken the second largest cryptocoin in market cap Ethereum.
The great migration from bitcoin to bitcoin cash
Kyle Samani, a managing partner of Multicoin Capital wrote in a message:"There were lots of Bitcoin Cash whales who were in early on Bitcoin who were waiting to see what would happen with 2x. Now they're making their move. They're dumping BTC for BCH....I know many Bitcoin OGs who have dumped $10m+ of BTC for BCH ... Turns out there were a lot more BCH ideologues than we all thought." The "2x" refers to the planned doubling of the size of bitcoin blocks which was suspended. "BTC" are the trading letters for bitcoin, as are "BCH" for bitcoin cash.
Bitcoin cash is 2.2 times as profitable for miners to secure blockchains than on bitcoin itself. Some bitcoin miners will migrate to bitcoin cash causing bitcoin to take longer to process transactions as it loses what is called hash power. However many who support the suspension of the move to enlarge its block see bitcoin as a store of value as is gold and not a medium of exchange.
Bitcoin Classic supporters endorse bitcoin cash
A group that supported doubling the block size of bitcoin has shut down and thrown its support behind bitcoin cash after the hard fork was suspended.
Classic's release manager Tom Zander wrote: "It is now up to the next billion people to start to use Bitcoin Cash. In at most 6 months, I’m sure we’ll just drop the ‘Cash’ and call it ‘Bitcoin’."
This is a typical example of the evangelical-like hype used by some promoters of their favorite crypto coin. We need a new term "cryptohype" or perhaps "cryptotripe" would be better.
More about bitcoin, bitcash, cryptocurrencies