More valuable than Ether: the incredible course rally from Bitcoin Cash

Bitcoin Cash reached an all-time high of $ 2,500 on Sunday morning - and was more valuable than Ether in the meantime. However, the euphoria lasted only briefly.

Bitcoin Cash has temporarily reached the status of the second largest cryptocurrency this weekend. The digital money came in at $ 2,500 on Sunday morning, according to Coinmarketcap.com. It put Ethereum for the first time in third place of the most valuable cryptocurrencies. For Bitcoin Cash, the price also meant a new all-time high.

Although the record was short-lived, the digital currency fell to $ 1,155 on Monday morning (as of 7:40 am). Nevertheless, experts rate the price jump as indicative because Bitcoin Cash has fluctuated between $ 300 and $ 500 since its inception - especially since the Bitcoin price has plummeted in the meantime. Ethereum founder Vitalik Buterin congratulated on Twitter for the all-time high: "Congratulations. Seriously."

Gavin Andresen, who is often referred to as a Bitcoin maker, was pleased, "Bitcoin Cash is what I started in November 2010." The currency offers more value and more transactions. One should understand the remark as a swipe to the original currency Bitcoin, which has to fight with slow transactions and high costs. Andresen had to leave the project around Bitcoin 2016 after there had been the dispute over the orientation of the digital means of payment.

Bitcoin Cash: A short-term high?

The high was apparently fired by the cancelled, second split of Bitcoin. Actually, in November, another so-called Hartford called Segwit2x should come. Just like Bitcoin Cash, this should encourage larger blocks, allowing for faster transactions.

Some supporters of the spin-off now seem to be joining Bitcoin Cash: "Looking at the trends, it looks like many Segwit2x supporters have switched to Bitcoin Cash," said Nucleus Vision CEO Abhishek Pitto to Business Insider. However, some experts do not regard the course rally as sustainable. The Bitcoin cash price is just inflated, investors are only interested in short-term profits, as block-stream manager Samson Mow told the business insider. "There is no real market for Bitcoin Cash."

Bitcoin Cash and the difference to Bitcoin

Bitcoin Cash had split off from Bitcoin three months ago because there was a dispute over the scalability of the currency. The original cryptocurrency consists of blocks of one megabyte. Due to the popularity of the means of payment, transactions are slow. That's why some developers have developed a second currency called Bitcoin Cash, which clones the bitcoin blockchain, but whose blocks can be up to eight megabytes in size. This currency dispenses with the "Segregated Witness" concept. This is to make the transactions faster by not parking signatures in the blocks.