Cryptocurrencies are off to the races and leading the pack is the original Bitcoin Cash (ABC) which has seen phenomenal gains over the past six days. In the past 24 hours, the coin has jumped 33.7% and is currently trading against the dollar at $215 according to data from Coinmarketcap.
This past week also saw BCH register an all-time-low of $75 on December 15th from which it has recovered to a weekly high of $220, a massive 200% increase in less than a week.
In comparison, Bitcoin, the leading cryptocurrency by market cap has seen one of the best trading weeks this year jumping in value by a little over 30%, a recovery from its yearly lows of $3,200 on December 15th. Bitcoin crossed over the $4,000 mark today and rose to highs of $4,200 before slowing down to the current price of $4,099.
Bitcoin Cash ABC (BCH) is recovering from its month-long hash war with its sibling faction the Bitcoin Satoshi’s Vision (BSV) which may have led to the market wide price dump over the past month or so. In order to wage the hash war, major proponents of BCH led by Roger Ver managed to convince Bitcoin miners to contribute their hashing power towards mining BCH blocks which led to one of the largest falls in bitcoin hash rate and consequently mining difficulty since 2011.
However, as the market was dumping miners became less profitable and several have had to shut down. The net effect is that there is less mining equipment available which has led to a fall in hashing rates. For instance, BCH’s hashing rate fell from 5,000 Petahashes per second (PH/s) recorded at the start of November down to 800 PH/s in mid-December. Due to this correction in hashing power, the remaining miners are seeing a return to profitability higher than miners on the Bitcoin network.
It’s currently 16% more profitable to mine on the BCH network. This could be the reason that Bitcoin Cash is currently leading in the current crypto surge.