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Bitcoin Cash Price Jumps 24%, Will the Bitcoin Fork Have a Revival?

Last Updated June 26, 2023 7:57 AM
Omar Elorfaly
Last Updated June 26, 2023 7:57 AM

Key Takeaways

  • Bitcoin Cash surged, making up for any losses in the past 30 days
  • The surge attributes to a technological upgrade, and also to the increased interest of a close cousin
  • What are Bitcoin Forks?

Bitcoin Cash, one of the few altcoins not contested by the SEC has seen a 24% surge in the past 24 hours. The surge is the highest  the cryptocurrency has seen since January, making up for any losses incurred in the past month. 

A Comeback Story

Bitcoin Cash has gained attention on both the investor side and the developer side recently.

BCH received a significant upgrade  in the month of May that improved its viability as a payment solution while improving its security protocols.

The token stands out due to its payment-only application, focusing on the fulfillment of smart contracts. 

More importantly, BCH is at the center of a pivotal point in the history of the crypto market. A sudden rush of crypto ETFs has been taking over the news for the past 48 hours.

BlackRock, the world’s biggest asset management company, has officially applied for a spot Bitcoin trading ETF that enables the company to establish an exchange to address the needs of its institutional clients.

On top of that, Charles Shwab, Fidelity Digital Assets, and Citadel Security backed the launch of EDX Markets, the industry’s new crypto exchange that serves both retail and institutional clients.

However, the important thing to note here is that these exchanges are planning on trading on SEC-approved cryptocurrencies, i.e., Bitcoin, Litecoin, Bitcoin Cash, and Ethereum.

Naturally, that increases the interest in these specific coins. With the crypto world now racing to get its hands on Bitcoin, the first obvious alternative to keep in mind is Bitcoin Cash.

Soft Fork Vs Hard Fork

A quick history lesson: Bitcoin was created by Satoshi Nakamoto in 2009, effectively creating the first-ever blockchain. Nakamoto then wrote some rules onto Bitcoin’s blockchain, creating what is now known as the Genisis Block, the first block on the chain.

Blocks are used to store information regarding a certain asset or a certain set of protected data.

As Bitcoin gained popularity, more and more users created blocks, hence creating a blockchain. However, As blocks increased, so did the difficulty to apply new rules to the blockchain.

Should a user decide to apply new rules, that don’t comply with preexisting rules, to the blockchain, it creates a fork, a new blockchain. That process is referred to as a hard fork.

A soft fork is when a user on the blockchain applies new rules that comply with the existing set, effectively upgrading the blockchain along with all users involved in it.

Bitcoin Cash is a fork of Bitcoin, created in 2017 when Bitcoin developers couldn’t agree on the process to be adopted when facing issues that compromised the structure of the blockchain.

Mind you, Bitcoin Cash is neither the only nor the first Bitcoin fork. There was Bitcoin XT in 2015, which doesn’t even exist anymore. There are also Bitcoin Classic and Bitcoin Unlimited which were created in 2016.

But, seemingly, Bitcoin Cash is the last fork standing among a sea of failed forks. And, now that the SEC affirms that Bitcoin cash is among the list of cryptocurrencies it does not see as securities, the 2017 fork seemingly has a bright future of increasing in both value and demand.