Bitcoin Cash sustaining heavy losses this week
Bitcoin Cash seems to be losing fanbase, as this week the currency became 20% cheaper. Such huge losses, seen on the fiat currency market only in unprecedented events, are making this week one of the worst time periods for this digital currency. It was born due to a hard-fork of Bitcoin this summer. Bitcoin Cash is currently worth $353.55, according to Coinmarketcap. The drop started at the end of this September.
The probable reason of the price drop is the EDA level correction in the BCH chain network. When too much blocks appear, the correction of difficulty mechanism is launched, making mining easier. This attracts new miners and the network hashrate grows. Because many miners turn their coins into fiat money the moment the acquire it, low difficulty network periods additionally influence the price of Bitcoin Cash.
The growing hashrate launches another EDA process and increases the difficulty rate, making the BCH mining not so beneficial anymore, and miners switch back to Bitcoin network.
While this whole mechanism gives an opportunity to manipulate the market, it is also one of the reasons Bitcoin Cash is still alive. Another possible drop reason can be that the market has admitted that this currency is no big deal.
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