Factors Affecting Bitcoin Cash
Right before the surge in Q4 of 2017, Bitcoin Cash diverged from Bitcoin, which was the perfect time, at an initial price of $ 300. It surged to $ 1,000 almost immediately, and by the end of 2017 it had reached $ 4,000. The decline that followed in the crypto market was brutal in the following year too, and at some points Bitcoin Cash ended up below $ 50. As we mentioned, the competition with Bitcoin hurt BCH and the attacks from the Bitcoin community for the split hurt its reputation. This family feud has been hurting the reputation of BCH, which is one of the reasons why this cryptocurrency has remained behind other major cryptocurrencies, despite it being among the top 5 cryptos in terms of market capitalization.
Since 2018, the trend has been slightly bullish overall, and we did see a surge earlier this month, which was encouraging for buyers, who hoped that Bitcoin Cash would join the rest of the crypto market in the surge, after breaking the long-term resistance at $ 500. But that didn’t happen, and the price has returned back within the range, although that move is a sign that BCH is alive, and it has actually made some decent gains, doubling in value in several months.
Bitcoin Cash Price Prediction for the Next 5 Years
Bitcoin Cash started as a hard form of Bitcoin BTC in 2017, after a number of BTC users expressed concern that Bitcoin was diverting from Satoshi Nakamoto’s whitepaper goals for Bitcoin. Since then, BCH has been in competition with Bitcoin as a result, and this has hurt its reputation. As we know, Bitcoin has some scalability problems, especially after the recent gains in the price, which took it to $ 40,000 at some point. Bitcoin decided to develop the Segregated Witness, SegWit2x, to solve the transaction problems, but a number of Bitcoin holders didn’t think that this would take care of the issue, so they created Bitcoin Cash and branched off on their own, increasing the block size to 8 MB from the previous 1 MB, and promising to adhere to Satoshi Nakamoto’s whitepaper aims.
However, this didn’t work out well for BCH, after the surge above $ 4,000 at the end of 2017, which was a result of the “gold rush” on cryptos, which pulled BCH higher too. Since then, the competition with Bitcoin has hurt Bitcoin Cash. BCH is also being used as a means of payment by certain companies, such as Sequoia Holdings, according to Roger Ver, which is giving its employees the option of receiving part of their salary in cryptocurrency – an indication that BCH is popular among the staff. But the BCH team will have to keep increasing the scalability and transactions will have to remain cheaper to make BCH even more popular for small transactions. This means that the main element in Bitcoin Cash’s potential for success will be whether users decide that directly increasing the block-size is more effective than SegWit. At 11.000 transactions per second (TPS), BCH’s transaction speed is faster, and it will increase even further, as Bitcoin Cash aims to increase the block size to 32 MB.
The adoption of BCH is also increasing; the team at Bit.com, a secure, “high-performance” cryptocurrency derivatives exchange, will reportedly be offering Bitcoin Cash (BCH) perpetual swaps and options. K.IM Dotcom is also adopting BCH for payments. The team said that while Bitcoin (BTC) is great for asset storage, Bitcoin Cash is great for payments for services like K.IM. However, the competition with Bitcoin has led to attacks on Bitcoin Cash, which have hurt its reputation. As we mentioned above, this has been one of the main reasons for BCH not benefiting as much as it should have from the recent surge in the crypto market in the second half of 2017.
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