Bitcoin Cash: Lack of Support for BCH Deposits Will Limit Price Discovery
The price of Bitcoin Cash is fluctuating wildly just days after it was minted – a trend expected to continue as bitcoin users face difficulty accessing their BCH deposits.
BCH price discovery was off to a rocky start on Tuesday, with volatility extending throughout the week. Values peaked at $756.93 on Wednesday before crashing below $400 during the same session. BCH was last down 22% near $373.00 for a market cap of roughly $6.2 billion.
Hash Power Remains Low
Low hash power is one of the bigger problems facing BCH. This has resulted in slow confirmation times that often stretch several hours. Although this issue will likely be resolved over time, it could be several weeks before blocks are found at lower intervals.
Speculation of collusion is widespread, with some users arguing that miners are purposely creating no blocks for hours at a time.
Difficulty Accessing BCH
Accessing BCH deposits remains a chief concern for many investors since most exchanges have not supported the new currency. Users have also been warned about withdrawing their BCH from cryptocurrency wallets given the security implications of doing so. Users who spend from a BCH address do not reveal their private key, but do give up their public key. This is not the case with a bitcoin address.
Coinbase is perhaps the most prominent cryptocurrency exchange to refuse Bitcoin Cash. It has drawn the ire of disgruntled members who are demanding to trade or withdraw their BCH token. Together, they’ve threatened Coinbase with a class action lawsuit.
Bitcoin Prices Stable
Bitcoin has defended its market share since the August 1 fork, with prices showing remarkable stability in comparison with previous months. The BTC/USD exchange rate broke above $2,800.00 on Friday. At present values, bitcoin is capitalized at roughly $46 billion.
However, some analysts say bitcoin could be in for greater volatility as the full effect of the hard fork materializes. This could occur once BCH deposits are enabled.