The most popular bitcoin exchange in the U.S., Coinbase, is adding a new trading feature to its platform for the “bitcoin cash” cryptocurrency. Bitcoin Cash launched on August 1 of this year and is now currently worth around $3 thousand thanks to the announcement.
The bitcoin off-shoot was designed to scale faster by processing more transactions and it wasn’t previously supported by Coinbase when it started trading this summer. Bitcoin cash came to be due to a schism between bitcoin insiders. It is basically a bitcoin clone but with a bigger blockchain in place. Blockchains are a type of software that contains a permanent ledger of transactions.
Coinbase originally stated it would not trade Bitcoin Cash mainly because they wouldn’t want to recognize “forked” versions of bitcoin. However, this position resulted in a backlash from parties interested in Bitcoin Cash as well as a class action suit which ultimately forced the exchange’s hand to add the bitcoin clone.
Traders quickly took advantage of the new currency, which prompted the San-Francisco based exchange to suspend transactions due to “significant volatility”.
“We have been monitoring the bitcoin cash network over the last few months and have decided to enable full support including the ability to buy, sell, send, and receive,” Coinbase stated in a blog post.
According to the exchange, they considered factors such as developer and community support, security, stability, market price, and trading volume.
The cryptocurrency caused bitcoin’s value to drop dramatically from $19 thousand to below $16 thousand, however, it has since gained momentum once again to $17 thousand, according to, currency site, Coindesk.
Bitcoin Cash, however, did not stumble as it rose nearly 50 percent in the last 24 hours, from an estimated $2.100 to a temporary $3.600 mark. It is now the third most valuable digital currency after bitcoin and ethereum.
The newest cryptocurrency addition will most likely add fuel to the already burning wildfire that is the bitcoin mania.
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