Yesterday, I read a post “Bitcoin cash is down and it’s good for us here”. At first glance, I thought

“How could this be good for us? Shouldn’t we be pushing for Bitcoin cash to keep rising? As the more it rises, the more the value of the Bitcoin cash we hold (for those who have, I have none).”

I opened the post to have a pick at his words. And like he stated in the first paragraph of his article

“if you are a newbie in the Cryptocurrency world you may be worried seeing this price going down.”

And truly as a newcomer to the cryptocurrency space, such a drop in price would leave me worried. But reading further, I was able to capture his perspective and I had to agree with his shared thought.

I had to read more on Bitcoin cash and other related resources to know more about Bitcoin Cash, its pricing, and the effects (benefits and drawbacks) of Bitcoin cash price volatility.

The volatile nature of Bitcoin cash affects its price and these price movement can go in either direction – skyrocketing high to the moon or dumping low into the ground.

The Drawbacks: If the price of bitcoin cash drops significantly, hodlers with large amounts of BCH will be on the losing side and may have regretted not selling their coins when the price was up. So if you have 2 BCH at the price of $500, you will have a total of $1,000. After a sudden plunge to $400, you will be left with a balance of $800 and a loss of $200.

The Benefits: Crypto traders and investors take advantage of the Bitcoin cash dump by investing in (buying) the asset to lock in high returns. They employ a buy-and-hodl strategy where they buy the asset and hold them to a certain time – when the Bitcoin cash price peaks – before they sell them for profit. And according to the post, @phabulu took a look at the benefits of the bitcoin cash drop to members of the read.cash community. The daily spending on read.cash has been fixed at $500, so with the bitcoin cash drop not affecting this value, the users are earning more bitcoin cash.

Explain further with examples.

When bitcoin cash value surges, the users hodling their BCH will get more value for the amount they have. For instance, if 1BCH is at a price of $500, and you receive a $1 tip from a user or the random rewarder, you are actually getting 0.002 BCH. So ate 1BCH equal to $500, any $1 received will be 0.002 BCH. So if it drops to $400 per 1BCH, that same $1 tip will be worth 0.0025 BCH (You have received an extra 0.0005 BCH for the same $1). This difference will be a bit significant when you are receiving a tip of $100. So

At a price value of $500 per 1BCH, a $1 tip will give you 0.002 BCH, then $100 tip will give 0.2BCH.

At a price value of $400 per 1BCH, a $1 tip will give you 0.0025 BCH, then $100 tip will give 0.25BCH.

That’s an extra 0.05 BCH for a $100 tip. So when BCH rises back to $500 or more, you will have more value for your BCH in dollars. The $100 will become $125. A difference of $25.

I hope I have not ended up confusing you with this example?

Up to you…

So is Bitcoin cash dump good or bad for read.cash users?

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