In the last three days, the crypto markets have shown positive signs of upward movement as the overall crypto market valuations have surged by $25 billion and currently stands at $375 billion, according to the data on coinmarketcap.com. Although Bitcoin is seen inching higher, it’s the altcoins who have taken the charge of the rally, and more specifically Bitcoin Cash.
Bitcoin Cash has posted a phenomenal recovery in the last few days with some huge buying by traders and investors ahead of its hard fork that is scheduled in a month’s time. Bitcoin Cash which was trading at a low of $600 in the first week of April has gained more than 70% while smashing through the $1000 mark.
Analysts claim some strong reasons behind this significant up move in the price of BCH which include strong volumes and after-tax season liquidity along with a very active and passionate community supporting the hard fork project.
Bitcoin Cash first came into existence last year in August 2017 as an output of the first hard fork in the Bitcoin blockchain network. The Bitcoin Cash blockchain network currently has got block size of 8MB against the 1MB block size of the traditional Bitcoin. However, due to an extreme inrush of investors in the crypto markets, this has done little to solve the scalability issues.
Many analysts say that one of the biggest hurdles in the rising adoption of digital currencies is the biggest challenge of overcoming the scalability issues. Sebastião Coelho, CMO of Flashmoni, a blockchain company creating financial solutions, said: “Before we see mass adoption of cryptocurrencies, we need to see a significant reduction in the time it takes to process transactions.”
The upcoming hard fork which is expected to occur on May 15th will give the Bitcoin Cash network a block size of 32MB, thereby multiplying the capacity of processing transactions by four times. In addition to increasing the block size, the hard fork is expected to bring interesting updates to the BCH network.
The network upgrade will add some new operation codes and also reactivate others, which means that simplified smart contracts could also be executed on the bitcoin Cash blockchain. This news has pulled the attention of many investors as this would be mean a big jump in the operational capabilities of the BCH network. As a result, there has been a significant jump in the trading volumes of the Bitcoin Cash witnessed recently.
During the time of the proposed hard fork, Bitbox which is an open source toolkit project is planning to launch two hackathon events. Bitbox provides a suite of tools in order to boost the developer’s BCH workflow.
He further added: “Emerging platforms need a framework which encapsulates everything the platform offers into a suite of building blocks for developers — Bitbox is the toolset which lets you build Bitcoin Cash apps 10x faster.”