Bitcoin Cash Briefly Surpasses the Market Cap of Ethereum at $30 Billion
Earlier today, on November 12, the market cap of Bitcoin Cash broke the $30 billion mark, officially surpassing that of Ethereum.
Vitalik Buterin, the co-founder of Ethereum, congratulated Bitmain founder Jihan Wu and bitcoin angel investor Roger Ver on the recent success of Bitcoin Cash, particularly in the South Korean market.
The main beneficiary party of the cancellation of the SegWit2x hard fork has been Bitcoin Cash for the most part, because it encouraged businesses, miners, and investors that signed the original NYA or SegWit2x agreement to focus on the development of Bitcoin Cash and its market.
But Segwit2x supporting businesses and their executives including Xapo President Ted Rogers emphasized that the short-term price trend of Bitcoin Cash was inorganic and unsustainable, given its 100 percent increase in value within one day, and the concentration of trading volumes in the South Korean cryptocurrency exchange market.
"This Bitcoin Cash price move is far too fast to be real or sustainable. if it was built on fundamentals, earned over the period of time, ok. But there is no weight behind Bitcoin Cash: virtually no users or businesses, nothing beyond hash power and pumped prices. Bitcoin Cash will correct very painfully soon, "said Rogers.
The South Korean cryptocurrency community seemed to have invested heavily in Bitcoin Cash due to the sudden movement of miners from the original bitcoin blockchain to Bitcoin Cash. However, it is important to acknowledge that miners always follow the more profitable blockchain, as they are rewarded with higher returns for producing blocks of transactions.
At the moment, Bitcoin Cash is more profitable to mine. But, after the next difficulty adjustment when Bitcoin Cash becomes more difficult and costly than mine, miners will inevitably switch back. Therefore, if the majority of South Korean investors allocate their funds from Bitcoin to Bitcoin Cash, the short-term surge in the price of Bitcoin Cash will be unsustainable.