Published on November 13th, 2017 | by bitcoin0
Crypto-currency officianados left speechless at Bitcoin wild ride over the weekend.
TL;DR Bitcoin (BTC) crashed over the weekend and Bitcoin Cash (BCH) spiked in value causing a lot of confusion and panic in the community.
– BCH– BTC
As I write this, Bitcoin has largely recovered and Bitcoin Cash has receded somewhat.
Several wallets with large amounts of Bitcoin began to sell and pump up Bitcoin Cash, increasing the value meaningfully.
On Saturday, a large pool of Miners in China switched from mining Bitcoin (BTC) to mining Bitcoin Cash (BCH) due to the low difficulty and high value of BCH.
This had two effects:
Bitcoin transaction confirmation speeds massively reduced causing a transaction backlog (still in effect)
Bitcoin Cash confidence & liquidity increased
This in turn caused the value of Bitcoin Cash to increase more and with low mining difficulty, many more miners diverted to mining BCH.