Bitcoin has just had another price record-breaking 24 hours, and now sits just below $3,500 USD on Coinbase. However several altcoins also saw significant gains, including the token some Bitcoiners love to hate — Bitcoin Cash.
According to CoinMarketCap, Bitcoin Cash was actually the strongest gainer of the past day. At press time, the average price is $331. That’s bound to be sobering for anyone who dumped their stash a few days ago, when it threatened to dip below $200 and many said it would never rise again.
Bitcoin’s growth over the past few days has led some analysts (including Bitsonline‘s own Ramiro Burgos) to suggest prices have hit a psychological trigger point above $3,000, which could push them up even further. Others have said it shows the Bitcoin main chain, with SegWit coming soon, has investors’ confidence. However, if that were the sole reason, then wouldn’t Bitcoin Cash sink at the same time?
Bitcoin and Bitcoin Cash Price Decoupled?
It’s possible Bitcoin and its non-SegWit, large-block twin do not operate in a see-saw pattern. Speculators likely see it as a completely separate altcoin with its own value and potential.
Its blocks still aren’t being mined as regularly as Bitcoin’s, but they are appearing every few hours at least. The block rewards, and transaction fees between $47 and $216, are nice earners for ViaBTC, the Hong Kong Bitcoin Center and any other independent miners.
Popular exchange Kraken has also now enabled Bitcoin Cash deposits and withdrawals.
In other tangentally-related news, exchanges using the “BCH” symbol are slowly gaining on those persisting with “BCC”. For now, however, there’s still more fiat value backing BCC:
— Nikita Zhavoronkov (@nikzh) August 8, 2017
Maybe Speculators Just Decided to Spin the Wheel Again
In all honesty, cryptocurrency speculators are likely looking at the potential for short-term gains, rather than the long-term viability of each blockchain project. Many big gains have been with new and unproven crypto projects.
In CoinMarketCap’s Top 20, other big improvers were Stratis (17.48 percent gain), NEM (15.48 percent), EOS (9.92 percent) and IOTA (9.85 percent).
Even Ethereum, which has disappointed its speculators recently by hanging out in the low-$200 doldrums, is averaging $273.
In conclusion, it’s possible the absence of bad news in the cryptocurrency space is actually good news for investors. Anecdotally, community members report curiosity is also at an all-time high, with newcomers constantly asking how to get into the market. It’s possible another bubble is forming. But each time one has burst in 2017, another forms before prices crash to pre-2017 levels.
What’s driving cryptocurrency enthusiasm? Let’s hear your thoughts.
Images via Pixabay