As been expected, on August 1st a new coin was born out of Bitcoin’s blockchain called Bitcoin Cash (BCH) or Bcash. Beyond the endless agreement around the fork, there is now a smaller argument over the name – Bitcoin Cash, which includes the word Bitcoin, or Bicash.
Following the fork, which was backed by the support of a small percentage from the miners of VIA BTC, we received (literally) a coin with the same history as Bitcoin before August 1st.
Bitcoiners who held bitcoin before August 1st (in hardware wallets and on several exchanges) received a new coin that started a whole new blockchain. The following guide well explains how to release the Bitcoin Cash coins and export them to an exchange.
The birth of the new coin was not easy at all. It took hours for the miners to find the first blocks and approve transactions. The procedure is very slow at the moment and therefore is not valuable for the miners, compared to regular bitcoin mining. There are other procedures and technical changes that the protocol of Bitcoin Cash should pass through until full stabilization of the network and ability to confirm blocks faster. The slowness in mining blocks is shown on Bcash’s graph. Every couple of hours a block entry carries decrease of 10-15% in response. Another interesting statistic is the circulation of the amount of total bitcoins which are in use today, by tracking transactions.
Mining Block: A mining block contains bitcoin’s transactions information over the network. Today, every 10 minutes on average, a block containing transactions is approved. Viki is here for more information.
What is the main difference between Bitcoin and Bcash?
– The size of the block in Bitcoin Cash is 8 MB while in regular Bitcoin block size is 1 MB. The size of the block had initiated the arguement which led to the fork. A change was required because blocks were filled, what led to slowness and high fees. Bitcoin Cash did not adopt SegWit technology, unlike Bitcoin.
It will be interesting to see how a network with different size’s block will work, and what the demand would be. We will wait for the difficulty in the network to be coordinated by the miners (the adjustment is done parallel to the mining power) and for the network to stabilize, a process that can take a long time.
The altcoins suffered from excessive volatility and sharp corrections. Many investors sold altcoins for bitcoin prior to August 1st in order to receive Bicash. Some altcoins had lost huge percentage, this could lead to buying opportunities. In our previous report we’ve discussed the option that we’ve seen the altcoin’s top.
Another surprise – since the moment that Bcash joined the market the market dominance of bitcoin is again less than 50% as shown on the following graph.
Bitcoin Cash is traded mainly on Bittrex carrying huge trading volume. During the first two days, it was not possible to deposit Bcash. There were not many coins in play, and the price hit 0.48 BTC high. We then experienced a slow landing to levels of 0.2-0.16. From there, the massive deposits had started. The slow deposit process, which requires 20 confirmations, causes a significant decrease but then gives time for recovery (until the next deposit).
Note: Following the unexpected day (deposits), there is a difficulty in analyzing the following graph:
The graph looks very positive after the fork. We did not see panic at all. Now we are facing very strong resistance at all-time high around the $ 3000 level. All the previous attempts by Bitcoin to break through these areas are marked in the following 1Day graph. If we succeed, we expect to get a new record. On the other hand, the situation can mislead the market in case we rely on the past. Currently, BTC is traded over $ 2800, which is a nice fast jump after a rapid drop to support at $ 2400.
ETH had suffered from downtrend during last month. The last supports were around 0.066BTC and then a sharp and rapid correction up to the 0.084BTC level where lies resistance. ETH is traded around the level of 0.077BTC It is impossible to declare that we have reached the “safe floor”. ETH-USD graph got supported in the $ 140 area, now the significant psychological level support is at $ 200 levels.
Since the airdrop of ZEN (for ZClassic holders), the coin has been on a very strong downward trend. Now it seems at very low prices, even according to the recent altcoins’ dump. In the last 24 hours trading volume has risen sharply. At the moment, the price is around 0.00055BTC after reaching its daily peak at 0.00068BTC.
Augur is actually on a critical point. May be used as an entry point at high risk. The price is around 0.006BTC. At the peak of the last pump, Augur reached 0.0169 BTC high. The project still has no working product out, which influences sentiment. If there is significant progress in the project, the trend will probably change and be very positive again.
The project, which distributes its coins to anyone holding Bitcoin (reminds something?), will perform another distribution on the next full moon – August 7th at 18:10 UTC. For every 26 Bitcoins you will earn 1 GB (one million bytes) which is currently traded at around 0.2 BTC. For every 5 GB that is held in Byteball’s wallet you will earn one additional GB. To participate, you need to download the wallet app (tried by us) and sign your Bitcoin addresses. The whole process can be read on the Byteball’s site.
Meet the Auto-Sell command that’s available on some exchanges (in Bittrex, main menu under the LAB tab). Activating the function will sell at market price any positive balance of a coin you choose. In the case of Bcash it may be very useful to use Auto-Sell.
