CNBC Credits Bitcoin Cash Spike to Increased Mining Profits
Bitcoin Cash (BCH) had a stunning 48 hours, rising a stunning 375% from the lows of early August, largely driven by mining profitability.
Bitcoin Cash (BCH) had a stunning 48 hours, rising a stunning 375% from the lows of early August. The sudden and sharp increase left traders of Bitcoin stunned, as many had expected a BCH crisis to occur, especially with the complexity of use and service. However, this was not to be the case, as the cryptocurrency fork from Bitcoin pushed near all time highs of $944 each.
Mining profit swap
Much has been said regarding causes for the massive jump in price over the last couple of days. Clearly there are many causes. However, CNBC recently reported that, though many factors may be affecting the volatile pricing, one issue stands out - mining profits.
The article made it plain that the profitability of mining on the newly made chain increase exponentially. This increase led to a profit swap of up to 42 percent, as confirmed by BitcoinCashFans on Twitter:
Trading volume swap
The article went on to say that, not only had the profitability swapped, but the 24 hour trading volume had as well, with Bitcoin Cash registering $4.4 bln, vs. Bitcoin’s $3.4 bln.
Whether the swap remains, or the price surge is met by an equally significant design in the short term remains to be seen. However, for Bitcoin fans, the profitability swap should be a concerning sign, as Bitcoin Cash becomes a legitimate competitor.