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How Bitcoin Cash Achieved $1700 In 2021

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Avatar for Pantera
Written by   1314
5 months ago
Topics: Bitcoin Cash, BCH, SmartBCH, Price, Market, ...

The price of Bitcoin Cash has been underperforming since its peak of $1700, reached in May 2021.

From roughly $320 on January 1st, BCH started growing in parabolic terms and reached $1700 on May 12th (2021). Then a rapid decline followed, and together with the rest of the market Bitcoin Cash entered a lengthy bear market, leading to recent lows not explored since 2020 ($260).

Multiple factors contributed as the rising number of transactions and the increase of the users transacting on the Bitcoin Cash chain.

Throughout this bear market for BCH, smartBCH was also released, with the potential to become a disruptive sidechain offering high throughput and cost-efficiency in the smart contracts field.

SmartBCH, though, is meant to significantly influence the fiat valuation of Bitcoin Cash in the long run. The effects of this technology on the price of BCH will probably emerge later this year and depend on the market performance as well.

Bitcoin Cash in May 2021

Investors did not support cryptocurrencies offering privacy features in 2021. Moreover, it seems they didn't enjoy crypto with money features either.

While Bitcoin Cash achieved a decent ranking and price in May 2021, still, this was short-lived, and BCH price took a hit.

Several reasons helped Bitcoin Cash reach $1700, although the decline today indicates these metrics were not sustained and therefore didn't last.

In March and April 2021, we witnessed these three events that significantly contributed to the positive price action of BCH:

i) Increased transactions
ii) Tipb.ch Twitter Event
iii) The "Elon Musk" comment

The daily BCH transactions surpassed Bitcoin Cash for two months

The rise of daily transactions resulted from the explosive growth of noise.cash. 

When Noise.cash changed the transactions model, transaction numbers regressed but still to a higher average than previously.

(source)

BCH Tweets went parabolic

The tipb.ch event coincided with Musk's comment on Bitcoin Cash, as these two events occurred around the same date (25 March).

During the tipb.ch event almost one year ago, Twitter was overwhelmed by posts containing #BCH and #BitcoinCash hashtags.

The number of daily Tweets is an indicator many are watching. It is also an indicator picked by algorithmic trading bots.

(source)

Twitter algorithms probably shadowbanned twice these numbers so the real Tweets of all those participating in the tipb.ch contest of 2021, were a lot higher.

On March 26th, 2021, two days after the announcement, the tipb.ch event was already generating tens of thousands of (BCH-related) Tweets.

Trading bots on social media were buying BCH not stop for weeks until an abrupt end to the bull market was initiated as severely "bad news" appeared (mostly from China).

Traders set their social media bots accordingly. They will always buy significant amounts especially when it concerns an established cryptocurrency.

Musk's Interest in Bitcoin Cash

While the tipb.ch event was running, popular Bitcoin Cash advocate Kim Dotcom tweeted (referencing Elon Musk) and managed to get a response from the top influencer on Twitter and wealthiest person on the planet at the time.

While I don't expect Elon Musk to keep responding to Kim's messages or endorse Bitcoin Cash again, it was probably one of the factors that helped Bitcoin Cash attract investors' attention.

(source)

It seems both these events (tipb.ch and Elon Musk) occurred right when BCH needed it, during a time BTC was losing its market share and the rest of the crypto market was advancing.

As the price of BCH was reaching $1700, the market was not going to continue its parabolic advance. News from China appeared and crashed prices with PoW mining banned, and an exodus of miners from China taking place.

Long Term Factors

There are three more factors that should have contributed to the price of BCH but will mostly influence Bitcoin Cash in the long run.

  • Institutional adoption

  • Merchant adoption

  • On-chain developments and smartBCH

All the above are fundamentals. Maybe they contributed to an extent to the temporary "pump" of BCH in May 2021 but should be considered long-term factors of adoption of Bitcoin Cash (as a currency and an asset).

Institutions

Institutional adoption seems to have stalled lately for the cryptocurrency market. The main weakness in this field is the fund managers aggressively promoting the Bitcoin (BTC) brand and ignoring the rest innovation this field produces.

During 2021, multiple institutions integrated Bitcoin Cash as a payment or investing option:

JPMorgan Chase & Co. (USA)
SBI Holdings (Japan)
Rakuten (Japan)
21 Shares (EU)
Interactive Brokers (USA)
AMC Theaters
PayPal (USA (2020) & UK (2021))
Bancolombia (Colombia)

Although, institutional funds entering the Bitcoin Cash ecosystem did not soar in volumes when compared to BTC and Ethereum.

Institutions are not performing research on cryptocurrencies, but follow the financial advice of just a handful of fund managers that do not seem to understand this financial technology either.

Merchant Adoption

(source)

BCH Merchant adoption has been increasing, and Bitcoin Cash initiatives create a culture of spending BCH instead of fiat for our daily payment needs. The "Accepting Bitcoin Cash" signs are now on display in tens of thousands of shops worldwide, but still, a lot more is needed.

In a few regions like the Caribbean, Australia, and Venezuela, Bitcoin Cash can achieve a small share of the payments market, but still too small to compete with traditional payment networks (Visa/Mastercard/Paypal).

This is a long-term objective for Bitcoin Cash to succeed as a means of exchange, and it can take many years of effort.

Ecosystem developments - smartBCH

SmartBCH contains enough dynamics to propel Bitcoin Cash into the top-10 cryptocurrencies again since smart contracts networks attract billions of funds even during bearish market conditions.

In the case of smartBCH was a Cardano technology, it would be advertised massively since its inception. The Cardano approach is hyping up and popularizing code that is not ready for meaningful adoption but operating a testnet for five years.

Terra, Solana, Cardano, Chainlink, Polygon, and almost all similar networks did hackathons, visited conventions, and received billions in funding. Maybe for Bitcoin Cash, this is not possible but should be considered for smartBCH.

In Conclusion

The market bull was not the reason for the price reaching there. If Musk once again talks in favor of Bitcoin Cash price will definitely double in days. The way the market conditions are used brings the desired results.

Bitcoin Cash was on its way to $5000 until the Chinese government decided to end PoW mining citing environmental concerns and applying a blanket ban on crypto in May 2021.

The price boost of Bitcoin Cash during the 2021 cryptocurrency bull run is based on some of the factors described. $1700 was nowhere near the targets of BCH investors, when compared to the market conditions.

The $1700 price was too low for a robust blockchain network of Bitcoin Cash with vast potential and developments.

The rise of transactions, the low fees, and the security and stability of the blockchain presented a state-of-the-art network to investors, with no flaws and no single point of failure.

What helped BCH was publicity, advertising, and PR, by popular personalities, although it lacked a professional marketing plan.

The fundamentals were there, yet Bitcoin Cash reached investors for just two months, and shortly afterwards, we witnessed the price depreciating.

The next article contains options and models Bitcoin Cash could follow in its marketing to reach sustainable growth and achieve a better price and standing in the crypto market indexes.

Cover Photo by Jonatan Pie, on Unsplash


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Material published in this content, is used for entertainment and educational purposes and falls within the guidelines of fair use. No copyright infringement intended. If you are, or represent, the copyright owner of images used in this article, and have an issue with the use of said material, please notify me.

No financial advice intended.


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Avatar for Pantera
Written by   1314
5 months ago
Topics: Bitcoin Cash, BCH, SmartBCH, Price, Market, ...
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Comments

A matter of time and it will get better ... I'm so much interested in the next article

$ 0.02
5 months ago

Needs some work, but I'm working on it. It is ideas I've previously written in many articles but I will summarize the best in one.

$ 0.00
5 months ago

In so much anticipation...

$ 0.00
5 months ago

I still remember when Tweeter started censoring BCH related since then, every tweet with tipb.ch was getting hidden itself all the time

I think simon will re launch it in web 3.0 where censoring won't work otherwise he might have re launched it been so long.

Well i believe BCH will rise again in the coming future.

$ 0.00
5 months ago

I think with a different approach it can work and bring results. It wasn't all tipb.ch tweets that were shadowbanned, but about half perhaps, or 2/3rds. Twitter won't shadowban a legit account. Maybe it could be activated again by whitelisting certain accounts that can participate.

$ 0.00
5 months ago

Yea, certain account would be a good thing and will encourage more peoples to come ahead.

Though tipb.ch was playing it's role at the time I've realised this now.

$ 0.00
5 months ago

Waiting for the best

$ 0.00
5 months ago

Institutional development of BCH really boast up it's worth but I will take bit time

$ 0.00
5 months ago

We were waiting that moment and surely when it will happen we all filled with joy and happiness.

$ 0.00
5 months ago

Well deserved tip Pantera! I honestly didn't know that the huge bch enthusiast like Roger Ver are here. Readcash is growing so big including noisecash and I'm hoping this platform will grow the BCH community more.

$ 0.00
5 months ago

Do you think we will ever reach a price like that again with BCH?

$ 0.00
5 months ago

I can see Bitcoin Cash reaching higher, maybe even at $10k.

$ 0.01
5 months ago

That would be mighty nice! Bring on the bull market!

$ 0.00
5 months ago

Wow, there is alot to learn from this article, consistence and passion for crypto made achieved this

$ 0.00
5 months ago

I don't know why, but I have a feeling that bitcoincash will do better than last year putting all the statistics together, more people know of bitcoincash now and beside its transaction exceed that of last year and the number of country accepting it is increasing too, I'm sure with the right endorsement from one of the top guns, probably a tweet like what happened last year, there should be a new breaking point

$ 0.02
5 months ago

Where can we reach more about the tipb.ch event? I somehow missed it the first time around. Is there any reason we can't do it again?

$ 0.01
User's avatar RogerVer
This user is who they claim to be.
We have manually verified this user via some other channel.
Proof
5 months ago

Hi Roger!

The announcement (by Simon, the read.cash dev) for tipb.ch and its BCH faucet was in this link: https://noise.cash/post/lpvzvvj9

The faucet was put on halt, though, after a few days due to overwhelming spam. Simon (the read.cash dev) can probably explain better. He was planning to restart this campaign under a better approach, but don't know why he didn't. I still think it was a great idea, that can be implemented with an approach that minimizes spam.

*Thanks for the tip Bitcoin Jesus!

$ 0.01
5 months ago

I believe it would get there and surpass it too.its just a matter of time

$ 0.00
5 months ago

It'll achieve again.. sooner or later . it will touch its peak

$ 0.00
5 months ago

I can remember the tipb.ch on twitter vividly. I think people abused it and it stopped. I hope we experience another bull run again, but this time it's going up to stay- back to reclaim the Top 10 spot on coinmarketcap. I'm sure it will happen soon.

$ 0.02
5 months ago

It'll be achieved again..sooner or later. It doesn't matter. What matters is, it'll get there someday..

$ 0.05
5 months ago

yes,it will

$ 0.00
5 months ago

I used to buy coins because I hoped the price would go up and I could sell higher. Seeing bitcoincash. I started to change my mind. I see bitcoincash many uses. I like bitcoincash. I think the price will exceed $1700, I don't know when that will happen.

$ 0.05
5 months ago

It will certainly reach above this price. It is about making the right moves increasing adoption, and embracing developments.

$ 0.00
5 months ago