Bitcoin Cash (BCH) is both a digital cryptocurrency and a payment network. Bitcoin Cash appeared in December 2017 as a result of Bitcoin's hard fork, with the goal of accelerating the number of transactions that can be processed.
The official website of Bitcoin Cash describes it as "point-to-point electronic cash for the Internet, completely decentralized, without a central bank, and without entrusting a third party to operate."
Since it is created, Bitcoin Cash has become the most successful branch of Bitcoin. Roger Ver is an early adopter and important investor of Bitcoin and one of the admirers of Bitcoin Cash. He calls it the "real Bitcoin". Ver is often called "Bitcoin Jesus" and has been a vital supporter of Bitcoin since 2011. He believes that Bitcoin may be a way to promote economic reforms. Later, he began to support Bitcoin Cash because of its lower transaction costs and faster speed.
How to trade Bitcoin Cash?
When you buy Bitcoin Cash in a transaction, its price is usually based on U.S. dollars. In other words, you need to exchange U.S. dollars for one unit of Bitcoin Cash. If Bitcoin Cash rises in price, you can sell it profitably because it can be exchanged for more dollars than when you bought it. If you are ready to sell when the price drops, then you will suffer a loss.
On the CMC Markets foreign exchange trading platform, you can conduct bitcoin cash transactions through a CFD account. In this way, you can predict the price trend of Bitcoin Cash without actually buying encrypted digital currency. You don't need to have ownership of Bitcoin Cash. Instead, the price of your open position will increase or decrease based on the price movement of Bitcoin Cash against the U.S. dollar.
CFD accounts are leveraged products. This means that you need to pay a percentage of the total transaction volume as a deposit for opening a position. You don't need to directly buy Bitcoin Cash with all your assets at once. On the contrary, you can access a larger amount through the initial deposit. Leveraged trading expands the return or loss because they are based on the total amount of the position.
What are the factors that affect the price of Bitcoin Cash?
The price volatility of Bitcoin Cash comes from several factors, including:
The scalability of Bitcoin: Bitcoin Cash was created by the Bitcoin hard fork, with the purpose of changing the slow transaction problem of Bitcoin. If the scalability issue of Bitcoin is not resolved, it may have a positive impact on the price of Bitcoin Cash.
Regulations : Like other digital cryptocurrencies, Bitcoin Cash is currently not subject to government and central bank supervision. But how this will change in the next few years, and the impact on value is still unknown.
Supply : The total amount of Bitcoin Cash is 21 million (same as Bitcoin). Limited supply may affect its value.
Competition : Bitcoin Cash and Bitcoin, as well as several other digital cryptocurrencies, are in direct competition. This may limit the recognition of Bitcoin Cash.
Media: Public perception, safety and longevity may also affect its price.
Adoption: Currently, businesses and consumers have not widely accepted Bitcoin Cash as a payment method. However, some groups have seen the development potential of blockchain technology and predict that the technology could also be widely adopted in the future.