While the Bitcoin already won the fork-battle, his little brother – Bitcoin Cash – is slowly recovering after the price drop. As you may know, the fork was a real success for Bitcoin – growing from $2800+ to $4500 in just a few days. However, I can’t say the same thing for the BCH. Right after the fork it had a spike in value which brought his value to a 0.48 BTC top on Bittrex, decreasing in the following days to less than 0.1 BTC.
Today however, Bitcoin Cash had a 75% increase in value in less than 24h after the first 8mb block was mined. But why would people mine a cryptocurrency that doesn’t give them as much value as the Bitcoin?
No one knows for sure the exact reason, but people tend to believe that it’s an ideological devotion to larger blocks – which is also the reason the split was made, to increase the block size from 1MB to 8MB. What’s more interesting is that the Bitcoin Cash is mined by an unknown pool of actors which own approximately 90% of the hashing power. Other people also believe that Bitcoin Cash is just an alternative coin owned by Bitmain and ViaBTC. They believe that Bitmain and ViaBTC are using the Bitcoin name only to increase their wealth.
Whatever the reason is, Bitcoin Cash had an impressive increase in value today, even though mining it isn’t profitable yet. There’s stil a 8% mining profitability difference between Bitcoin and Bitcoin cash. This is actually great news for Bitcoin Cash as a few days ago the difference was 70%.
With the adjustment in mining, Bitcoin Cash is now 16.7% as difficult as bitcoin to mine. If the Bitcoin Cash will be able to reduce the mining difficulty even more – it might be more profitable to mine Bitcoin Cash than Bitcoin, which is a tough decision for the Bitcoin miners. Also, Bitcoin developer Daniel Krawisz declared today about Bitcoin Cash: “I think investors matter a lot more than miners. They should worry about them.“.
With the huge increase in value and the low mining profitability difference, Bitcoin Cash is slowly trying to overtake the Bitcoin in the fight for the cryptocurrency supremacy.