Update December 2021: Bitcoin Cash ABC (BCHA) just changed the branding name to eCash. eCash is still one of the biggest cryptocurrencies in 2021 with a market cap of around 3 billion. eCash has brought some amazing features to the crypto community.
Whenever a cryptocurrency is updated, it can either be a soft fork or a hard fork. Soft forks are those updates that can be backward compatible with not updated nodes. Hard forks require that each node updates if they want to remain in the blockchain. The implication here is that if a considerable number of nodes decide to not update, a new blockchain can be created. This was the case with Bitcoin Cash (BCH), which is the result of a Bitcoin hard fork.
This article focuses on the fundamentals of Bitcoin Cash as a project and as an investment. After looking at the key features, we can dive a bit deeper into what can await this cryptocurrency in the future.
Bitcoin Cash (BCH) Fundamental Analysis
Bitcoin, as the world’s first and biggest cryptocurrency, began having some problems as it grew even more. Perhaps the biggest issue that Bitcoin has is scalability. Since the network has become so crowded, it takes quite some time until a transaction is verified. Moreover, longer transaction times mean more fees, making Bitcoin transactions quite expensive. To solve such an issue, some members and developers of the network proposed in 2017 that an upgrade needs to occur. The main idea behind this proposal was to increase the block size so that more transactions can be verified. This also meant some changes in the mining aspect of the network, and that’s why many users did not favor this change. As a result, a new blockchain was created from this hard fork, leading to the creation of Bitcoin Cash.
At first, people thought that this update was a scheme to get richer because if you had BTC before the fork, you would have received that same amount in BCH. However, the likes of Roger Ver, one of the earliest investors of Bitcoin, showed full support toward Bitcoin Cash and how it can be better than Bitcoin. This encouraged more people to believe in the concept of Bitcoin Cash.
Even Bitcoin Cash forked later on. Bitcoin Cash ABC (BCHA) and Bitcoin SV (BSV) might be the two forks you may have heard of. However, the two have not been as successful as Bitcoin Cash.
How does Bitcoin Cash work exactly?
In a lot of aspects, Bitcoin Cash is very similar to Bitcoin. Both Bitcoin and Bitcoin Cash use Proof-of-Work (PoW) as a consensus mechanism. A PoW mechanism means that miners compete with each other on verifying transactions. A more powerful computational power means a higher chance of successfully mining. In terms of tokenomics, both Bitcoin and Bitcoin Cash have a limited supply of 21 million. The circulating supply of both is around 18.8 million.
The main difference between the two is the block size. Bitcoin has a block size of 1MB. When Bitcoin Cash was created, the block size was increased to 8MB. This increased block size was sufficient for achieving a higher speed and solving scalability issues. Furthermore, Bitcoin Cash has increased the block size to 32MB, making Bitcoin Cash one of the most efficient networks for conducting transactions.
Another difference between Bitcoin and Bitcoin Cash is that the latter supports the use of smart contracts. Apps such as CashShuffle or CashFusion can be used by Bitcoin Cash users. The two apps can be used to make your BCH transactions private by mixing or fusing several other transactions in order to make them untraceable.
Bitcoin Cash has been favored by businesses because it is much better for micropayments. It can easily be used in restaurants, stores, etc. Because of that, many investors have shifted their focus from Bitcoin to Bitcoin Cash. Nevertheless, Bitcoin still remains the most dominant cryptocurrency to exist.
It is worth noting that Bitcoin’s utility remains to be digital gold. Bitcoin Cash, on the other hand, has the same supply as virtual gold. The difference is that Bitcoin Cash can be easily used in the same way as cash, so it is a combination of gold and cash.
Read more: What is Bitcoin Cash (BCH) Cryptocurrency?
Bitcoin Cash (BCH) Price Analysis
Bitcoin Cash was created midway through 2017. According to CoinMarketCap, BCH had a price of around $440 when it was launched in July of that year. Initially, BCH grabbed the attention of many investors, driving its price to around $754 in less than a month. Throughout the year, the price slowly declined to around $320. In the last two months of 2017, BCH began its biggest increase, reaching $1,000 for the first time in November. On December 20 of that year, BCH reached its highest of all time at $3,923, marking almost an 800% increase in less than six months.
The price started declining after that, reaching as low as $610 by April of 2018. There was another increase up to $1,765 in May of that year, but that was also followed by a price reduction in the following months. Throughout the rest of 2018, 2019, and 2020, the price of BCH ranged from $100 to $500, keeping Bitcoin Cash quite stable and less exciting than it was when it was first launched.
Following the bullish trend of 2021 caused by the BTC halving of 2020, Bitcoin Cash started increasing again, climbing back again in the cryptocurrency rankings. As of May 2021, BCH reached a price of $1635, which is the highest Bitcoin Cash has managed in quite some time. While still not surpassing its price record of 2017, BCH still has the potential to grow.
At the time of writing this, the price of BCH is around $495. With this price and a circulating supply of 18.8 million BCH, Bitcoin Cash has a market cap of around $9.3 billion. This places Bitcoin Cash at number 12 in the market rankings. the fully diluted market cap is around $10.4 billion.
Rank: 16
Bitcoin Cash (BCH) Market Price Prediction
Since Bitcoin Cash is still yet to reach its full potential, many experts predict that the price of BCH can keep increasing in the future. Not only BCH is supported by a lot of investors and influencers, but it also is being incorporated in many businesses as a means of payment since it is much more scalable than Bitcoin.
Wallet Investor predicts that BCH can keep growing in the long run. They predict that holding BCH tokens might generate at least a 200% profit in the long run. Whether or not it may exceed its highest of all time remains to be seen, but consistent price growth is anticipated.
While many might be bearish about the rest of 2021, Previsioni Bitcoin suggests that the price of BCH can rebound and surpass $1,200 once again in 2021. That growth can continue in 2022 as well, with the price predicted to exceed at least $2,100 by May of next year.
YouTuber Crypto Addiction suggests that Bitcoin Cash has received a lot of support from institutional investors, and it is much more practical than Bitcoin. Since it is still a project on the rise, the price of BCH might range from $4,000 to $5,000.
https://www.youtube.com/watch?v=RjxbKGUi1Ks
BitBoy Crypto also predicted an increase in the price of Bitcoin Cash since it has proven that it is better than Bitcoin in some fields. However, since BCH already had momentum when it was launched, and some of the supporters have moved away when Bitcoin Cash forked into Bitcoin SV, BCH might not surpass its all-time high in the short run. Nevertheless, a price of around $3,000 is quite possible in 2021.
When looking at price predictions, it is worth noting that Bitcoin Cash and its price are heavily affected by influencers such as Roger Ver. In an interview with Andrew Henderson, Ver addresses both Bitcoin and Bitcoin Cash. His verdict is that Bitcoin Cash is the better option between the two since they have similar features, but Bitcoin Cash is a lot more scalable.
Crypto Academy Bitcoin Cash (BCH) Price Prediction
The price of Bitcoin Cash is affected by many factors that are similar to Bitcoin. To illustrate, the supply of both BTC and BCH is equivalent. As the supply of BCH runs out, its price is likely to increase. Furthermore, since many businesses are beginning to implement Bitcoin Cash as a payment method, its demand may also increase. The price of BCH is heavily linked with the price of BTC. Usually, an increase in the price of BTC causes an increase in the price of BCH. This occurs because BCH is already in the top 15 crypto rankings and many investors diversify their portfolio once the price of a cryptocurrency increases. Due to all the price factors that we have gone through so far, we here at Crypto Academy predict a steady increase in the price of BCH in both the short term and the long term.
Bitcoin Cash (BCH) Price Prediction For 2021
As suggested, the price of BCH is directly related to the price of BTC. If the price of BTC increases in the remaining months of 2021 (which is quite possible), BCH can increase as well. While BCH might not surpass its highest of all time in 2021, it can easily get close to $2,000 once again.
Bitcoin Cash (BCH) Price Prediction For 2022
Bitcoin has crossed the $40,000 mark and is likely to move further towards $100,000 as many crypto experts predict. If this happens even altcoins will rise in price as they are correlated to BTC. This would undoubtedly increase the demand for BCH tokens and increase its price as a result. The price of BCH might exceed its all-time high and reach $4,000 for the first time.
Bitcoin Cash (BCH) Price Prediction For 2023
2023 might see a continuation of the price increase predicted in 2022 for Bitcoin Cash. Most cryptocurrencies revolve around the price of Bitcoin. Since the price of Bitcoin is projected to keep increasing in 2023, BCH might range from $5,500 to $7,200.
Bitcoin Cash (BCH) Price Prediction For 2024
By 2024, cryptocurrencies are likely to increase in popularity and be one step closer to replacing traditional payment methods. Nevertheless, 2024 might be a little more stable until the BTC halving of 2024 occurs. The average price of BCH might be around $7,800.
Bitcoin Cash (BCH) Price Prediction For 2025
Judging by previous bullish runs that started a few months after BTC halving events, the price of BCH is very likely to increase as BTC increases. Other things equal, the price of BCH might range from $13,000 to $15,000 in the bullish run of 2025.
Bitcoin Cash (BCH) Price Prediction For 2026
BCH has already proved what it is capable of doing. As the world starts relying more on cryptocurrencies, BCH can possibly exceed $15,000. As the supply would be even scarcer by then, the BCH market cap would likely place it in the top five cryptocurrency rankings.
How To Buy Bitcoin Cash (BCH)?
You can buy Bitcoin Cash in three easy steps;
Step 1: Create a crypto exchange account
Go to a trusted cryptocurrency exchange such as eToro, Binance, Coinbase, etc. There, you need to open an account and verify it. If you want to know what are the best crypto exchanges you could use click here.
Step 2: Fund Your Account
Deposit the desired amount of money through a credit or debit card, and simply select the cryptocurrency you want to purchase.
Step 3: Buy Bitcoin Cash
You can determine the desired amount of BCH tokens you want to purchase. Simply write down the amount of BCH you are interested in buying and press “BUY”.
Read more: How to Buy Cryptocurrency?
How to Store Bitcoin Cash?
Once you purchase your BCH tokens, you can store them in a crypto wallet. Wallets are necessary for keeping your funds safe, so it is important that you do this step. Once you transfer the BCH tokens to your wallet, you successfully own BCH.
First things first, you need to have a cryptocurrency wallet that supports BCH tokens. This wallet can either be a hot (software) wallet or a cold (hardware) wallet. The best hot wallets for BCH are Exodus, Kraken, TrustWallet, etc. The best cold wallets for BCH are Ledger and Trezor. Check out what are the Top 9 Cryptocurrency Wallets in 2021.
Once you have a wallet, you need to locate your Cash Address, which will be the address where your purchased BCH tokens go.
Frequently Asked Questions
Is BCH a good investment?
Since the price of BCH is predicted to increase, BCH might be a very good investment in the long run.
Can Bitcoin Cash price ever reach $5,000?
It is quite possible that BCH reaches $5,000 as its supply becomes scarcer and its demand increases.
Can Bitcoin Cash price increase?
The price of BCH can easily increase due to supply and demand factors. Furthermore, an increase in the price of BTC can easily affect an increase in the price of BCH.
Also read: Decentraland Price Prediction 2021 and Beyond – Is MANA a Good Investment?
Takeaways
- Bitcoin Cash is a Bitcoin fork that solves the scalability issues of the latter.
- Similar to Bitcoin, Bitcoin Cash has a limited supply of 21 million and has a PoW consensus mechanism.
- The main difference between Bitcoin and Bitcoin Cash is the block size. The block size of BCH as of 2021 is 32MB.
- BCH had its highest of all time five months within its launch. It is yet to surpass its price record.
- Bitcoin Cash is predicted to increase in both the short run and the long run due to supply and demand, potential Amazon integration, BTC halving of 2024, etc.
- To buy BCH tokens, you need to use a cryptocurrency exchange, have a cryptocurrency wallet, and transfer the purchased tokens from the exchange to the wallet.
- Overall, Bitcoin Cash is a good investment.