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Bitcoin cash is already the 3rd largest cryptocurrency

Aug 2, 2017, 16:42 IST

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Bitcoin cash has already secured its place as a top cryptocurrency, just a day after it entered the marketplace.

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According to Coinmarketcap.com, the cryptocurrency is trading at about $490 per coin and its marketcap now stands above $8 billion. As such, it is the third largest cryptocurrency by marketcap, surpassing big name coins such as Ripple ($6.7 billion) and Litecoin ($2.2 billion).

Bitcoin cash came to fruition Tuesday after it split from the original network that powers its crypto-cousin, bitcoin. To recap, the split was preceded by a years-long war between power brokers in the bitcoin space over the rules that guide the digital currency's network.

Supporters of the newly formed bitcoin cash believe the currency will "breath new life into" the nearly 10-year-old bitcoin by addressing some of the issues facing bitcoin of late, such as slow transaction speeds.

And it looks like investors are singing the same tune. Bitcoin cash is up about 80% since its inception. That's a higher appreciation than any of the other top 10 cryptocurrencies.

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Because bitcoin cash will initially draw its value from bitcoin's market cap, according to Charles Morris, the chief investment officer of NextBlock Global, an investment firm with digital assets, it will most likely cause bitcoin's value to drop by an amount proportional to its adoption.

Bitcoin is currently down 3.7% at $2,690.

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