Bitcoin cash latest: Currency surges to 70 per cent in dramatic spike | City & Business | Finance

Bitcoin forked earlier this month, creating Bitcoin Cash – a new version of the cryptocurrency with its own rules and blockchain.

All bitcoin transactions are recorded by a ledger, known as the blockchain, which is run by so-called ’miners’. 

And the fork is essentially a divergence in the bitcoin blockchain, which means there are now two sets of tokens: bitcoin on the original chain and bitcoin cash on the new blockchain. 

But just two weeks after the fork took place, the new currency has gone from strength to strength – and experts claim could now be more profitable than the original.

Bitcoin Cash had garnered mixed reactions following its launch and subsequent price slide to below $300, a level around which it stayed for several weeks.

Now it has surged dramatically overnight, spiking as high as $569 and levelling off at around $500.

The rising price has created the incentive for miners to dedicate their computer power to the new cash blockchain, where they are making around 2 per cent more income.

And Coin Desk suggest this rise could see miners move away from the original bitcoin to do so.

This is likely to be further exaggerated with an upcoming adjustment on Bitcoin Cash that will make the currency easier to mine.

And the bitcoin blockchain charges higher fees on transactions, so miners must take into account the extra 1.5 BTC per block on bitcoin (about $6,000 USD). 

In comparison, bitcoin cash has very low fees (typically under $50 USD).

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