Bitcoin Cash has returned to the price levels it had on November the 11th between $1100 and $1500 dollars. The situation can be explained because Bitcoin has experienced a recovering from the last days when the price crossed the $6000 dollars’ barrier.
What is Going on in the Cryptocurrency World?
In the last 24 hours, Bitcoin Cash has lost more than 7% while Bitcoin is more than 5% up. Bitcoin Cash has experienced an increase in its price after the Segwit2x suspension; covered by Usethebitcoin.com. The Bitcoin community was waiting for the next hard fork in order to search for solutions for the scalability problem that this famous cryptocurrency is facing.
When the markets realized that the Segwit2x fork was not going to happen, they turned to Bitcoin Cash and Dash. These cryptocurrencies offer fast transactions and cheap fees when you transfer funds.
Bitcoin Scalability Problem
Bitcoin was created as a peer-to-peer, fast and cheap currency. But when more people and investors start to use it, the network can’t process all the demands, creating high fees and high waiting times. In order to solve these problems, the block size should be increased allowing more transactions to be performed per block. But as explained on Bitcoin Wiki, the increase in block size might not be the best thing for the Bitcoin network.
Bitcoin Cash has 8 MB blocks while Bitcoin has only 1 MB blocks. As the Segwit2x proposal couldn’t succeed, investors turned to Bitcoin Cash or Dash. Two currencies with low fees and fast transactions. People, investors and other individuals will decide whether it is better to pay high fees in order to transact and wait longer for confirmations, or choose the alternative virtual currencies in the market.
But sometimes fees and fast transactions is not what it matters. An increase in the block size would reduce the decentralization. Early Bitcoin adopters and cryptocurrency enthusiasts understood this. They know that Bitcoin’s decentralization is one of its greatest features.
Bitcoin Cash Good and Bad News for the Network
The latest increase in Bitcoin Cash price brought good and bad news for this network. The good news is that Bitstamp, one of the largest Bitcoin exchanges in the European Union will list Bitcoin Cash for trading. In a moment that Bitcoin Cash is arriving at new high prices, investors that want to buy Bitcoin Cash in the European Union now will be able to do it thanks to Bitstamp.
Regarding the bad news, according to this website, 3,000 customers of Bithumb, the largest South Korean cryptocurrency exchange, were affected by a server outage that disabled Bitcoin Cash trading for hours. Now, these customers are preparing to file a lawsuit against the company for this problem that caused several of them to lose money.
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