Bitcoin Cash has shown to be an excellent investment during the last two years, ranking 18th in terms of market capitalization among all cryptocurrencies, according to CoinMarketCap. BCH is expected to gain in value as a successful Bitcoin fork. Let's take a look at the history of Bitcoin Cash before we get into our price estimate.
What is Bitcoin Cash (BCH) and how does it work?
Bitcoin Cash is a Bitcoin hard fork. It first arose in August 2017, as a consequence of a decision by powerful miners, developers, investors, and users who opposed the SegWit2x consensus. It's now a peer-to-peer (P2P) decentralized payment system. The concept behind BCH is that it is "a coin for everyday transactions."
The creators of Bitcoin Cash agreed to increase the block size to allow for more transactions and improve the cryptocurrency's scalability. As a result, they boosted it from 1 MB to 8 MB.
BCH immediately gained popularity after its inception. Within a month, about 1,500 blocks had been constructed. Antpool and ViaBTC, for example, recognized this cryptocurrency and routed high hash rate volumes to mine BCH.
I’ll give a quick overview of BCH. The cryptocurrency was created by Amaury Sechet, Roger Ver Jian Wu. It has a Market Capitalisation of $11.4 billion. It has a price of about $602.47 from CoinMarketCap as of today. Its protocol is Proof-of-work and has an Algorithm of SHA-256. It has a Block size of 8MB.
Analysis of the Bitcoin Cash (BCH) pricing
Many members of the cryptocurrency ecosystem, including Ethereum and Bitcoin miners, were reluctant to accept Bitcoin Cash. Despite this, BCH has shown to be an excellent investment vehicle. Bitstamp, Coinbase, Gemini, and Kraken are among the digital currency exchanges that have it listed.
The price of Bitcoin Cash (BCH) in the past.
The journey started with a single BCH costing around $200. Even at this rate, the cryptocurrency swiftly climbed to the top of CoinMarketCap's market capitalization charts. The following day, the rate had doubled. Throughout three weeks, the price remained steady until skyrocketing to $1,000. The community must have believed it was a planned increase because the price dropped to $700 very quickly.
A chart on the growth of BCH in Mid October 2017
We may see a long and steady decrease. The price of Bitcoin Cash (BCH) peaked at $317 in mid-October 2017. Then there was a major turnaround, with BCH rising to $1,600.
Thereafter, the market steadily increased several times. Each crypto increased by roughly 400%. Prices climbed by even higher percentages. With a value of $4,091 per coin, Bitcoin Cash reached its all-time high in the middle of December.
The crypto market's dark days began on December 22nd, when every project, including Bitcoin, and others, began to lose value. Bitcoin Cash's price dropped below $1,000 before skyrocketing to $1,500 at the start of May 2018, before the market crashed again.
Due to low prices, the preceding winter was the worst for the bitcoin market. Bitcoin Cash was trading for $80 at the time. It rose to $534 after a brief period of growth, but then fell again. Bitcoin Cash's price soared to over $1,600 in May 2021, the most it had been since April 2018, when it traded at over $1,800. But it couldn't be sustained, and the price has subsequently dropped to the $500-$600 range.
Technical analysis of BCH
Bitcoin Cash's price is now trading near an annual low, but there is optimism that it could rise in the near future. For buyers, the current price point implies a solid value.
Earlier this year, Bitcoin Cash was a victim of the crypto market's buying pressure. On longer time horizons, the price had been holding between $105 and $500 for the greater part of two years before breaking out and rallying upward. It increased by approximately 200% from January to May 2021, reaching over $1,600 before plummeting to $469.
The price gained ground around $400 but was rejected twice in June ($387.33) and July ($384.26), before recovering over 100% and finding resistance around $800 on September 6, 2021. Within that area, it gradually declined, but the price recently rejected the preceding support.
We should expect a break above short-term highs back into $800 if these resistance holders and buyers appear, even if slowly. Within the annual range, a subsequent climb higher might see the price move into premium territory. Due to the forecasted increased acceptance of cryptocurrencies globally, 2022 is expected to be a spectacular year for BCH.
Predictions for the overall value of Bitcoin Cash
Because Bitcoin Cash is the most successful hard fork in cryptocurrencies history, predictions for it could be optimistic. 2.544 Ehash/s is the total hash rate. This demonstrates that mining pools trust in Bitcoin Cash's future and are working to help it. The daily trade volume is over $1 billion, according to CoinMarketCap. As a result, traders believe in this project as well.
BCH's fees have dropped again, suggesting that it may become more stable as more transactions are completed. This could have a beneficial impact on people's perceptions of cryptocurrencies and lead to a minor increase.
In some jurisdictions, such as Australia, BCH has an advantage over fiat. Forecasters believe Bitcoin Cash will continue to expand as a result of future developments. We can also see a prospect for higher price performance in 2022 as cryptocurrencies become more widely adopted around the world.
Bitcoin Cash, on the other hand, has a slew of concerns, the majority of which are technological issues. BCH's block time is nearly 10 minutes, just like Bitcoin's. This chain is overburdened, and each transaction takes a long time to complete.
The productivity of Bitcoin Cash is determined by the activity of miners. Miners must spend more resources to work effectively as the network's complexity grows. As a result, some of them will abandon this plan, causing the hash rate to drop. Transaction rates will suffer as a result, and the price of BCH will decline.
The same can be said for security concerns. If miners are unwilling to utilize their high hashing power, the probability of an assault will rise to 51%. Someone with a lot of money may take control of the BCH chain and utilize it for their own purposes.
What is the highest value Bitcoin Cash can reach?
It is debatable if Bitcoin Cash will succeed in destroying Bitcoin. This is a difficult question to answer. BCH has a substantially larger scaling capacity than Bitcoin. However, it still has issues in terms of security and compatibility with other alternative currencies..
Because Bitcoin is required to swap most cryptocurrencies on most exchanges, it will not go away anytime soon. If Bitcoin fails in the near future, the entire market will crash. While there is a need for Bitcoin, neither Bitcoin Cash nor other cryptocurrencies can compete.
Next, BCH is reliant on Bitmain, which is the cryptocurrency's largest supporter. As a result, BCH is unable to reach very high levels. If Bitmain's preferences change, Bitcoin will suffer.
As a result, we can't predict the highest Bitcoin Cash price because there are so many factors in play. However, we anticipate that in the next five years, it will climb to $5,000. That is 2022, 2023, 2024, 2025, and the last I can say a projection to the year 2030.
Today's BCH price forecast
The entire crypto market is currently gloomy i.e. Bearish. The majority of Bitcoin Cash is being sold by traders. As a result, the BCH price forecast for today is pretty bleak. The price could drop considerably further in the following days. There are some bullish reversals, but they won't be enough for a big surge unless the crypto market as a whole gains more bullish momentum.
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Thanks for reading!
I've been waiting for the BCH to fly high to the moon.. like it flies last march, the price is really high..