Does it make sense to add BitcoinCash to your portfolio?

7 32
Avatar for mypathtofire
2 years ago
Topics: Bitcoincash, Defi, Money, Crypto, Finance, ...

BitcoinCash or BCH is the 27th largest crypto by market cap. It was created as a fork of Bitcoin in 2017. It seems to have risen in popularity recently, therefore, is it worth adding to your portfolio? Let's take a look.

If we look at the 1-month chart, BCH is -8%, but that could be because of normal crypto volatility. So let's take a look at the year to date (YTD) chart:

YTD the position looks even worse with a -31% change since the beginning of the year. As a store of value or as a cash replacement, so far BCH isn't doing so well. Now we will take a look at a longer time frame.

Despite a big run-up, the current performance of BCH over 1 year is -40%. In order to find a positive return with BCH, we would need to go back to Dec 2020 and earlier to see a positive return.

So it seems that holding BitcoinCash long term is currently not profitable. But there are some positives about using BitcoinCash. Those are that you can very quickly and easily transfer Bitcoin as a cash substitute and with very low fees compared to say Bitcoin and Ethereum.

Therefore, my strategy will be to try and join the 1 BCH club initially, so that I have some liquid crypto on hand and then convert above this value to my crypto investments. I will keep evaluating the situation and consider if I need to increase my holdings.

Thanks for reading.

Chart data is taken from Google


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Avatar for mypathtofire
2 years ago
Topics: Bitcoincash, Defi, Money, Crypto, Finance, ...

Comments

if more shop accept and more place use it,it will pump...

$ 0.01
2 years ago

yes we need more widespread usage!

$ 0.00
2 years ago

Indeed BCH is down at the moment but hope for better days ahead. Keep accumulating and keep holding :)

$ 0.00
2 years ago

Thanks for your comment. Accumulating at these prices makes sense 👍

$ 0.00
2 years ago

Indeed BCH is one of the best crypto but if you are up for profit then it's not for you since it is not that profitable atm.

$ 0.00
2 years ago

Thanks for your comment. The question is if it continues the downward trend or now is a good place to accumulate. At the moment I keep adding.

$ 0.00
2 years ago

Ah yes, I always accumulate it using this platform..

$ 0.00
2 years ago