Despite Active Support From Chinese & Korean Exchanges, Bitcoin Cash Decline in Value
The vast majority of bitcoin exchanges in the Chinese and South Korean bitcoin exchange markets are currently in support for Bitcoin Cash (BCH) the newly hard forked cryptocurrency from the original bitcoin blockchain by Chinese mining pool operator ViaBTC.
Support towards BCH in the two regions is likely influenced by the origin of BCH. Prior to being rebranded as Bitcoin Cash, the industry’s largest bitcoin mining equipment manufacturer Bitmain developed the initial proposal as Bitcoin ABC. As Bitmain shifted away from the Bitcoin ABC and the mining community unanimously agreed to the activation of the Bitcoin Core development team’s transaction malleability fix and scaling solution Segregated WItness (SegWit), ViaBTC continued the development of Bitcoin ABC as BCH.
As local Chinese sources including CnLedger have revealed, both small and large-scale bitcoin exchanges and digital asset trading platforms within the Chinese cryptocurrency exchange market are in support for BCH crediting and trading. CnLedger provided the following chart:
Already, the three largest bitcoin exchanges in China by daily trading volumes that include BTCC, OKCoin and Huobi have announced their plans to list BCH/BTC trading in the upcoming months, on BTCChina, OKEX and Huobi-Pro, respectively.
Earlier this week, Korbit and Bithumb, the South Korean exchange market’s two largest trading platforms, announced that they have fully integrated BCH / BTC trading.
“We are happy to announce the availability of Bitcoin Cash. All users who had a BTC balance as of 8/1 9:20:00 pm KST has been credited the equivalent 1:1 balance in BCH. The BTC balance that will be honored for BCH calculation is the balance you had on the Korbit exchange. Trading is now available for BCH in the same way as other currencies, and we are currently planning on adding support for BCH deposits/withdrawals,” announced Korbit.
In South Korea, due to the overwhelming support toward Bitcoin Cash by local bitcoin exchanges, BCH is actually being traded at a high premium. As bitcoin journalist JP Buntinx recently noted, BCH was trading at over $500 when its value averaged at around $215 across major bitcoin exchange markets including the U.S.
Despite active support from the Chinese and South Korean bitcoin exchange markets, BCH is still struggling to sustain its value. The demand towards BCH has not been demonstrated by the market and in contrast to the predictions of prominent bitcoin analysts including Vinny Lingham, the value of bitcoin has increased exponentially. Due to the hard fork, many analysts expected bitcoin price to undergo a major correction. Instead, bitcoin price recently achieved a new all-time high, representing growing confidence from investors and the market towards bitcoin, its long-term sustainability and its ability to scale.
On reflection, I was wrong to try to prevent a #Bitcoin bubble. Missed big gains, but getting back in. Bitcoin needs bubbles & busts to win!
— Vinny Lingham (@VinnyLingham) August 6, 2017