In the last 10 days, Bitcoin Cash was almost overthrowing Bitcoin, by reaching the price of over $2,400.00 per token on November 12, after that the price of Bitcoin had fallen to $6,550.00.
After experiencing this curious market correlation, Bitcoin surged and yesterday passed the price of $8,000.00, while Bitcoin Cash dropped to $1,099.42 during the past week to climb back to the price $1,181.69. In my opinion the idea that Bitcoin Cash is about to inherit the thrown of Bitcoin can be put aside, but just temporarily.
It is interesting to notice that the drop in price of Bitcoin happened few days after the Segwith2x hard fork was cancelled. The Segwith2x hard fork would have the goal to increase the base block size to 2MB addressing the scalability issues that Bitcoin is going through. It is not a mystery that Bitcoin has been pushing the limits of its software to accommodate the growing number of transactions on its network and that the issue of scalability has been debated by the Bitcoin Community that came up with two-part plan solution. The first part of that plan was the implementation of Segregated Witness (SegWit), a new block structure that improves the blockchain capacity. This part of the plan was implemented last August. The second part of the plan was to increase the Bitcoin block’s size from its current 1MB to 2 MB. This second part of the plan was cancelled after some members of the Bitcoin community along with some mining companies withdrew their support.
At the present time, in my opinion Bitcoin Cash, with its 8 MB block’ size, may be the only alternative to the waiting time and scalability problems of the Bitcoin original network as well as the growing fees of its miners that are charging customers to process faster their transactions. As a matter of fact, Bitcoin Cash was created on August 1, 2017 with the only purpose to be the new Bitcoin alternative, able to process a higher number of transactions and to take Bitcoins place when the transactions will become less feasible than the original Bitcoin network.
We will have to wait to see how the correlation between Bitcoin and Bitcoin Cash will play out and if Bitcoin will be able to save its crown in the long term.
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