Investors Look to Gold, Crypto After Fed Goes on QE Buying Spree
Gold is up Monday and so are most cryptocurrencies, seemingly buoyed by the U.S. Federal Reserve's drastic action to thwart the coronavirus’ effects on markets and the economy.
Bitcoin Cash is a fork of Bitcoin that prioritizes onchain scaling and utility as a peer-to-peer electronic cash system. The 1 megabyte limit on bitcoin blocks meant that there was often a significant delay between transactions being initiated and completing, as well as increased fees due to the limited supply per block. Bitcoin Cash increased and will continue to increase block sizes which thereby increase the potential volume of transactions on the network. On August 1, 2017, Amaury Séchet released the first Bitcoin Cash software implementation. Miners running this software were able to validate a new kind transaction to create a new chain, BCH. This process is known as a "hard fork" since it created a new version of the BTC chain that followed BCH rules. Today, BCH and BTC share the exact same transaction history up to that point.Blockchain 101
While some expect today's reward cut for BCH miners to belong-term bullish for prices, analysts suggest otherwise.
The event is a foreshadowing of the same process happening on a larger scale on the BTC blockchain next month.
Bitcoin Cash, the blockchain network that forked off Bitcoin in 2017, has just reduced its mining rewards by half, causing lots of miners to have nearly zero gross margin.
Crypto prices climbed with traditional market indexes Monday as traders wondered if bitcoin will remain a follower or break out and blaze its own path.
The trustee of the now-defunct bitcoin exchange intends to liquidate cryptocurrencies other than bitcoin and bitcoin cash as part of a draft rehabilitation plan.