These last few days have been full of surprises within the crypto world. Well, despite the fact that Bitcoin has managed to reach a new historical maximum price, thanks to the IPO of Coinbase , the main cryptocurrency exchange in the United States. The real players in the market have been altcoins, including Dogecoin, Ethereum Classic and, of course, Bitcoin Cash. That is why today we tell you what is behind the rise in the price of BCH.
The altcoin season
For a few months now, large investors in the crypto market such as Scott Melker, have declared the end of the Bitcoin season and the beginning of the altcoin season. This does not mean that Bitcoin will stop growing, but it does mean that in the short and medium term, the highest percentage returns can be achieved in altcoins such as Bitcoin Cash or Binance Coin.
This has been clear since last year's decentralized finance (DeFi) rush. When, in a matter of months, great fortunes were made thanks to DeFi projects on the Ethereum Blockchain. And it has been confirmed with the IPO of Coinbase, which, by generating the expectation of a greater ease to acquire and sell cryptocurrencies, has encouraged the purchase of altcoins, and therefore the massive increase in the price of crypto assets such as Dogecoin.
Thanks to this, and although none of these alternative virtual currencies can be compared to Bitcoin, neither in price nor in popularity. Projects such as Ethereum or Bitcoin Cash are becoming increasingly popular. Acquiring a value of its own for investors beyond its relationship with Bitcoin. From which, we can see substantial increases in the value of currencies such as BCH, which experienced a rise in recent days from $ 726 at which it was trading on April 13 to $ 958 at which it is currently.
The rise of Bitcoin Cash
Thus, overnight, a project that for a long time seemed doomed to fail, managed to win headlines within the crypto community. In a process that has been brewing since the beginning of the year, despite the fact that the greatest effects on its price are just beginning to be noticed. Relating to an increase in the interest that BCH arouses among investors.
This is due to the facilities offered by the Bitcoin Cash Blockchain as an alternative to Bitcoin. Well, while the BTC network faces strong scalability problems, which prevent it from making transactions immediately. The Bitcoin Cash chain was designed precisely to handle hundreds of transactions per second, calling itself virtual cash, while Bitcoin would be virtual gold.
A breakthrough like this would be very important for a cryptocurrency like Bitcoin Cash, which has long been relegated within the crypto world. Having been created as a hard fork from the Bitcoin Blockchain, but never succeeding in attracting a significant number of users. Which, in the middle of the altcoin season, seems to be starting to change.