Bitcoin Cash up 41% ahead of halving

Bitcoin Cash rose 41 percent in the week before its halving. At the time of writing, the Bitcoin Cash halving is scheduled for April 3. Bitcoin Cash is a fork of Bitcoin that was created in 2017 and trades at a price of $601.98.

This clearly indicates to the market that they prefer the “real” Bitcoin, which is trading at a price of $70,000.

Wat is Bitcoin Cash?

Bitcoin Cash was created after part of the Bitcoin community felt in 2017 that larger blocks were needed. Larger blocks essentially make it possible to process more transactions every 10 minutes.

For example, Bitcoin Cash is a version of Bitcoin with greater transaction capacity. The disadvantage of larger blocks is that the blockchain grows faster.

Currently, Bitcoin’s blockchain is 560.55 GB and with larger blocks it could have been much more.

Why is that a problem? That is a problem, because a larger blockchain makes it more difficult for people to participate in the network with simple hardware.

To truly become part of Bitcoin’s network, you must download and verify the entire blockchain. The larger the blockchain, the more difficult that is. Now 500 GB is not a huge problem, but if growth continues in this way, it could cause problems in the future.

Fewer people in the network come at the expense of decentralization and that is why the market is now choosing Bitcoin instead of Bitcoin Cash.

Good sign for Bitcoin?

That does not alter the fact that it may be a good sign for Bitcoin that Bitcoin Cash shows an increase of 41 percent in the week before its halving. The market acts based on what it sees happening around it.

Now the market sees Bitcoin Cash doing well ahead of its halving, which could then spill over to Bitcoin. As soon as the market has a certain expectation – Bitcoin will rise in the week before the halving – people will trade based on that expectation.

This development could mean that people want to anticipate that increase and start purchasing in the week before the halving. That does not have to be the case, but this is certainly not a negative development for Bitcoin itself.

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