Sure, bitcoin’s been hogging most of the spotlight lately. Sure, bitcoin’s surged past the $5,000 mark in recent weeks. Sure, many think the current bullish trends have something to do with bitcoin’s behavior, but at the end of the day, bitcoin’s returns haven’t come close to those of its little brother bitcoin cash (BCH).
Bitcoin Cash’s Returns Outdo Bitcoin’s
The returns of bitcoin cash in 2019 have, thus far, been nearly double those of bitcoin. The currency has exploded by roughly five percent over the past few weeks, starting at $160.53 in January, and flying all the way up to $329.85 on April 3. Bitcoin, by comparison, has only increased its price by approximately 45 percent, jumping from about $3,690 to $5,343 within the same time.
Analysts suggest several reasons behind the sudden change. The cryptocurrency market has seen an influx of new investors, which have contributed additional funds to the space and improved trading ratios. Charles Hayter – CEO and co-founder of the digital currency data platform Crypto Compare – comments:
A rising tide lifts all boats. The smaller cap cryptos can face buying pressure that moves them more than the majors.
Another potential reason for BCH’s sudden and dramatic flare-up involves what some experts refer to as the “spillover effect.” Typically, when a major cryptocurrency – usually bitcoin – is doing well, it’s bullishness can “spill-over” and strike competing, often smaller altcoins. In other words, when a major cryptocurrency like bitcoin is spiking, others will follow suit.
The reason cryptocurrencies like bitcoin cash don’t garner as much attention when they do well is likely because they are often compared with bitcoin. The father of cryptocurrency enjoys the largest market cap of virtually any cryptocurrency out there. It also boasts the largest price of any digital asset, so when it’s ranking moves up, people are bound to notice.
That doesn’t take away from the importance of altcoins, however. When their prices slink northward, it’s usually a sign that the bullish trends one is witnessing are not a fluke, and that the general market in good shape.
Remember When BCH was a “Problem Child?”
The irony of the situation is that the bearish trends of 2018 and early 2019 are thought to have largely been caused by bitcoin cash. The first 10 months of last year can’t necessarily be pinned on the currency, but beginning in November, currencies like bitcoin began experiencing solid drops that ultimately took it to the mid-$3,000 range despite hanging around $6,000 all summer. Bitcoin cash underwent a controversial hard fork that month that pitted several industry leaders against each other, and the end results were less than stellar.
How interesting that after causing such a dilemma in the crypto space, bitcoin cash is now experiencing higher volumes, prices and stability than its daddy.
Published at Fri, 12 Apr 2019 17:00:24 +0000