Why is BCH a trending topic these days? Find every detail about BCH and BCH price prediction in this article.
BCH, which stands for Bitcoin Cash, is the newest technology in the realm of digital and currencies utilizing the famous realm of blockchain.
Termed as cryptocurrency, Bitcoin Cash shares similar attributes and characteristics as Bitcoin, BTC, while adding and incorporating many moderations and changes that set it apart.
Due to its nature and apparent economic concerns, BCH price prediction is still uncertain and is very tricky and almost impossible to conduct.
Satoshi Nakamoto, the founder of the cryptocurrency, is the pseudonym of the person or group which wrote the white paper in 2008, which laid out the foundations of the peer-to-peer digital currency system.
Although BTC has gained notoriety and is often referred to in modern news, BCH is arguably coined as adhering more intimately to the original concept discussed in the original white paper.
The asset BCH was created by a hard fork of the BTC blockchain network. Although it is a proof-of-work blockchain like its counterpart BTC, it is faster and quicker than BTC and also has developed its own community.
It is accepted by many merchants and can be transacted via PayPal.
One of the most notable alterations from BTC to BCH is the size of its coin. The 1 MB cap on transactions meant delays, and Bitcoin Cash addressed the issue by increasing the block size of the chain to facilitate a higher figure of transactions.
It also helped to improve the scale of the currency and enabled it to compete with traditional similar platforms.
What is Bitcoin Cash used for?
Features discussed above make Bitcoin Cash an ideal value embedded currency exchange with an effective medium of transaction, as well.
Some people claim it enhances and gives the world global economic freedom, one which everyone should have.
Along with this, there are multiple uses for BCH as well. Some of them are:
Long-term store of value
The supply of BCH is limited to 21 million coins and can never exceed this number. This is embedded in the code of BCH, and as said, it depends upon the user how they use the protocols defined. Since BCH rewards users through transactions, it isn’t in the interest of the users to dilute it.
Highly effective medium of exchange
The peer-to-peer transfer mode between parties in the digital realm makes this model unique and compelling.
An incentive for sending BCH is less than a penny per transaction, and payment is carried out instantly. Without consideration of the localities of the participants, this is highly efficient for remittances and global trade and also advantageous for domestic business purposes such as paying outsourced activities, etc.
Bitcoin Cash enables robust protection against monetary confiscation and censorship along with devaluation in case of abnormal or any inflation.
As it provides an opt-in basis, this substitute for cash is the ultimate support for economic freedom.
Fundamental Difference between Bitcoin and Bitcoin Cash
Since its hard fork in 2017, many developers and teams have brought multiple protocols and innovative changes, making BTC a system that efficiently supports its ‘economic freedom.’
These advancements, if one can call them this, which sets them apart from Bitcoin, are not limited to and listed as follows:
Maximum block size
BCH has a large block size of 32 MB vs 1 MB of BTC. This difference plays a crucial part in the volume of transactions that the blockchain network can take advantage of on its chain.
BTC can typically produce 3-7 transactions in a second, while BCH has the ability to process 200 transactions per second.
This huge gap difference helps in reducing cost per transaction and increases the speed of the transaction also.
Smart contract support
Developers use smart contracts, one of blockchain technology’s core functionality and applications, for complex processes.
This allows maximum usage of this application for decentralized applications such as in the field of finance.
This ‘replace-by-fee enables transactions to be canceled/rejected/double-spent if they are not yet confirmed.
This feature is absent in BCH, and the absence of this protocol makes BCH more safe and secure, as unconfirmed transactions in the blockchain are not programmed to be reversible.
Using Bitcoin Cash
Bitcoin Cash is listed as an asset for trading on many popular exchanges for trading. Although cryptocurrency offers anonymity, exchanges require proper identification in order to know who you are dealing with and to address anti-money laundering activities.
The asset is also available in certain placed ATMs. As said earlier, PayPal also supports BCH, so interested parties can utilize this facility if in their vicinity.
Predicting BCH: Difficulties and Track Record in the last 12 Months
Various traders and dealers accept BCH transactions for payment. Many other industries such as traveling, services, and e-commerce have started using this technology.
All the users need is a wallet and an address for the recipient, and the recipient can be any person or merchant; it doesn’t matter.
But the significant difficulty and misfortune for this technology is its popularity and its mainstream. Today, many merchants and traders accept Bitcoin (BTC) as their primary source of cryptocurrency exchange rather than Bitcoin Cash. This fact is a blockade of broad acceptance of BCH.
Bitcoin Cash Vs. Leading Standards of Value
The main unique attribute of Bitcoin Cash, along with its blockchain technology, is its cap, prescribed in its protocols and code, of 21 million coins.
It can never proceed above this figure, and this makes it stand out amongst its counterpart hard assets.
Compared with gold, the supply of gold is subject and is under constraint to the powers of supply and demand.
Gold may be limited in supply, but as its prices rise, more and more miners are inclined to gain such incentives by searching for the commodity and financing it. This further widens the field of supply of gold, which in turn loosens pressure on its price.
Current Market Status
This prominent crypto asset in the market today has been able to achieve and record a remarkable growth rate of above 40% in the last quarter.
This has enabled BCH to garner the position of the most discussed digital asset in the trading and crypto world.
As anyone who follows the news knows, crypto is one of the most aggressive currencies if we talk about market standing. BCH’s price trades at around $528 and has a volume of $3,198,836,987.
Bitcoin Cash Analysis
BCH has secured top positions on exchanges, with 14th on CoinGecko, a known platform for crypto.
The trend seen in recent times is bullish, or if we want to get technical, short-term bullish. This is evident from the fact that its trend has higher highs and higher lows in its ascending channel pattern.
High trade volume has also given it a bullish trend, which was a change from the bear.
The RSI of BCH was 56.39, indicating that it may proceed to a price reversal at any given time. RSI stands for Relative Strength Index, and its number represents that BCH is in an overbought state.
Bitcoin Cash Price Prediction
This year – 2021
In a very small time frame, BCH has displayed a bullish uptrend and state. According to analysis and investors, in the short to the midterm scenario, Bitcoin Cash can break previous levels at $1,047. If not, then it can get dragged down below.
Next year – 2022
Assuming BCH’s trend continues to next year, it is estimated that BCH may reach $1,200 by the end of next year.
Also, the start of next year may show a rapid increase in its price, maybe till $1,500, and then decrease. Not to worry, this will not be any major mishap or fall, but with developments expected in the short term, the prediction of $1,200 is also optimistic.
Investors are rating BCH with a positive future ahead this year. There are ongoing developments expected to finish in the ecosystem of BCH and the crypto market, which may push the bullish price of Bitcoin Cash to new heights.
Not only this, but some optimistic investors predict it will reach an all-time high if it can break some barriers it is facing.
How to Buy
Bitcoin Cash can be bought on cryptocurrency exchanges like Huobi, Binance, and OKEx. From there, coins can be transferred to secure software or hardware, whichever wallet the recipient may prefer for their keeping.
Final Verdict: What to make of all the hype
Traders dealing in cryptocurrencies must trade wisely. Market hype may divert substantial gains in the market, and a cautious approach may also divert unexpected losses due to historic swings of the crypto market.
As already known throughout, due to its apparent nature, crypto assets have faced non-pattern-like graphs and predictions.
2021 brought bullish tactics which were higher or lower than prevailing rates. As with any other currency, these fluctuations do happen.
Considering various factors and the above analysis, Bitcoin Cash has a very bright future and a very competitive market happening this year.
Coupled with developments and technological advancements in the crypto and digital universe, we can surely expect that BTC would make incredible breakthroughs and can reach all-time highs.