Introduction
The crypto market had witnessed a relief bounce in recent weeks, with the price of Bitcoin creating a new high above $31,000. This has given altcoins a good opportunity to surge. One of the top performers amongst the altcoins had been Bitcoin Cash, which saw its price rise by over 180% in June. Is the current upward trend for this coin sustainable? Is it time for investors to buy Bitcoin Cash (BCH) with credit card and Paypal? What does the future hold for this coin? This work has provided an in-depth answer to these questions to guide beginners seeking to invest in BCH.
What is Bitcoin Cash?
Bitcoin Cash (BCH) is a popular cryptocurrency created in August 2017 due to a hard fork from the original Bitcoin blockchain. It was developed to address some of the limitations found in Bitcoin, particularly its low scalability and transaction speed.
Bitcoin Cash bears many similarities to Bitcoin, particularly its decentralized nature and limited supply of 21 Million. However, it implements larger block sizes (8MB initially, later increased to 32MB) compared to Bitcoin’s 1MB block size. This allows Bitcoin Cash to handle a higher volume of transactions and potentially offer faster and cheaper transactions.
Bitcoin Cash (BCH) On an Upward Trend: What you need to Know
Bitcoin Cash (BCH) has been on an upward trend in recent weeks, with its price rising by more than 180% in June. The upward trend for this coin has been influenced by several factors. One such factor is the overall bullish sentiment in the crypto market that saw Bitcoin creating a new yearly high in June at $31431. This has opened the way for altcoins to flourish including BCH which is itself a hard fork version of Bitcoin.
Another factor that could be driving the price of BCH is the increasing adoption of cryptocurrency by merchants and businesses. BCH is seen by many as a more scalable and user-friendly alternative to Bitcoin, with lower transaction fees and faster execution compared to Bitcoin. This has made it more attractive to businesses that want to accept cryptocurrency payments.
Finally, the recent listing of BCH on EDX Markets, an important crypto exchange backed by Fidelity Digital Assets, Charles Schwab, and Citadel Securities, could be said to have contributed immensely to the recent surge in its price. The new listing gives BCH greater exposure to institutional investors, which has led to a high demand for this digital asset.
What does the future hold for Bitcoin Cash (BCH)?
It’s difficult to say exactly what the future holds for this coin. However, there are several reasons to be optimistic about the future of BCH.
First, there is a wild expectation amongst analysts that the current bullish trend for Bitcoin and altcoins might last longer. This, if it turns out so, might favor BCH creating more demand for this coin among merchants and institutional investors. This will probably help to boost its price in the long term.
Moreover, the new listing of BCH on EDX Markets has boosted the demand and trading volume of this coin making it one of the most popular Cryptocurrencies and investors’ favorite for investments.
Notwithstanding, there are also some risks to consider while investing in BCH today. The cryptocurrency market is subject to wild volatility, and the price of BCH could decline if there is a sell-off in the broader market.
Additionally, the development of other altcoins that offer similar features to BCH could equally pose a threat to the cryptocurrency’s future adoption.
Conclusion
It is important to note that the future price of BCH is uncertain, and there is no guarantee that the cryptocurrency will continue to rise in value. Hence, investors need to diversify their portfolios and consider other investment options. Here one can choose to buy leveraged stocks, bonds, and derivatives without having to depend on a single investment.