What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency created in 2017 from a split or a hard fork of Bitcoin. Bitcoin Cash has its own blockchain and specifications and differs from Bitcoin in one key aspect – it has an increased block size to make the verification process faster. At its inception, it had a block size of 8 MB which increased by 4 times in 2018 to reach 32 MB, but the actual block sizes still utilize a small fraction of the 32MB limit. Bitcoin Cash is able to process more transactions per second faster than the Bitcoin network. This makes wait times shorter and transaction fees usually lower.
Changes in Bitcoin Cash Prices
Bitcoin Cash is one of the altcoins that appeared most recently and investors compare the performance of Bitcoin cash to that of Bitcoin. However, the price of Bitcoin Cash has never reached the price of Bitcoin and some investors believe that is not possible. The altcoin was created to facilitate everyday transactions and if the price climbs too high, it won’t be practical to use for everyday online payments.
Which Factors Move the Price of Bitcoin Cash?
The top factors that can possibly affect the price of BCH include:
Supply and Demand
The price of Bitcoin Cash will increase if the demand for it exceeds its supply. The idea behind creating Bitcoin Cash was to address Bitcoin’s inefficiency and lack of scalability. Therefore, concerns over Bitcoin’s efficiency and future could result in demand for BCH rising, driving the price higher.
Investor Awareness
Growing awareness for Bitcoin Cash could cause the demand for the altcoin to rise. According to a 2020 survey by FCA (Financial Conduct Authority) in the U.K., 20% of participants had heard of Bitcoin Cash which shows that the digital asset is among the most well-known altcoins. High levels of public awareness over BCH could signal that investors are more likely to trade it.
Crypto Whales
The term “crypto whales” refers to individuals or entities that hold big amounts of cryptocurrencies. These holders can cause artificial volatility and push prices to increase or decrease in order to profit from the asset movement.
Real-World Applications
If Bitcoin Cash becomes a more established and widely accepted form of payment, its real-life applications will increase. Therefore, the demand for it will go up driving the price higher as well.
Availability on Crypto Exchange Platforms
An increase in popularity for Bitcoin Cash may result in the altcoin appearing in more major cryptocurrency exchange platforms. The greater the number of platforms the digital coin appears on, the greater the availability of the coin and the highest the probability that investors trade it.
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