As you likely have heard, Bitcoin Cash was created yesterday by a fork of the original Bitcoin code.
Out of the gates, Bitcoin cash immediately stumbled.
Opening around $300, it promptly fell down to the $200 level, before rebounding slightly.
However, things would start to change for Bitcoin Cash later in the day...
A couple hours after touching it's low, Bitcoin Cash started to rally, and rally it did!
Early this morning Bitcoin Cash rallied all the way up to $757 dollars per coin.
Yes you read that right, Bitcoin Cash rallied almost 300% off the lows:
Not a bad bounce eh?!
That would give Bitcoin Cash 28% of the value of Bitcoin. That is significant considering it traded for around 10-15% of Bitcoin's value over the last week or so in Future's markets.
What gives?
Well a couple things actually.
For one, the supply is limited as many exchanges are currently freezing deposits and withdrawls, for that reason it has made trading of the coin somewhat restricted.
There has also been a flood of demand over the past 24 hours from people that want to own a piece of Bitcoin Cash.
That could be a very risky purchase because if the infrastructure never catches on for Bitcoin Cash it could completely go away within the next couple weeks/months.
However, if Bitcoin Cash takes over as the Bitcoin of choice for market participants, it will go a lot higher than even this $700 dollar price...
Risk vs. Reward indeed!
Coinbase faces possible lawsuit?
It appears the higher that Bitcoin Cash goes, the angrier Coinbase customers are becoming.
As you may have heard, Coinbase decided they were not going to honor Bitcoin Cash or accept it on its exchange.
An activist group, which claims that Coinbase's decision is akin to a brokerage withholding new shares from its investors, warns that it will commence a class action lawsuit after August 15th if Coinbase doesn't release the Bitcoin Cash it obtained to it's customers.
I can't imagine the lawsuit gains much traction as Coinbase has already stated that they will release the Bitcoin Cash to customers if it ever allows trading of the coin.
As much was mentioned briefly in this blog post yesterday:
https://steemit.com/cryptocurrency/@jrcornel/bitcoin-forked-and-the-world-didn-t-end-or-did-it-good-news-for-steem
Sounds like Coinbase is covered to me!
Conclusions:
At this point your guess as to where Bitcoin Cash goes is as good as mine.
Many of the higher ups in the cryptocurrency industry don't really see Bitcoin Cash lasting more than a couple months. I am not sure I fully agree with them, but I am also not sure I disagree with them either.
For me personally, I am holding both my Bitcoin and the newly received Bitcoin Cash and just letting things shake out over the next couple weeks.
That strategy won't maximize my returns I am sure, but it also won't allow me to make a stupid mistake that I could be kicking myself for later on.
Let me know your plans for Bitcoin Cash in the comments section below.
*As of this writing Bitcoin Cash has started to correct again, now sitting at $470 per coin.
Stay informed my friends!
Sources:
https://coinmarketcap.com/currencies/bitcoin-cash/
http://fortune.com/2017/08/02/bitcoin-cash-lawsuit/
Image Sources:
https://www.coindesk.com/coindesk-explainer-bitcoin-cash-forking-blockchain/
https://coinmarketcap.com/currencies/bitcoin-cash/
https://www.coindesk.com/coinbase-granted-one-month-delay-cryptsy-lawsuit-appeal/
Follow me: @jrcornel