What are the Main Drivers Behind Positive Bitcoin Cash Movement?


Bitcoin Cash (BCH aka BCC) has been the focus of discussion for many cryptocurrency experts and there are valid reasons for such inquiry. Bitcoin Cash is experiencing significant growth and moving in the right direction right from when the main Bitcoin blockchain hard forked. Let us go through details of how it is performing and also check the reasons which are fueling such positive movement.

Rising Bitcoin Cash Prices
Yesterday, there has been over 18% improvement in exchange rate (BCH/USD) from the low to the high, helping Bitcoin Cash attain $550.00 level with a network cap of about $9.1 billion. As such, it has reached the top 3rd position of cryptocurrencies by their network cap. I use network cap rather then market cap because it is not an equity and does not have earnings.

What is causing the price rise for Bitcoin Cash?
There are several reasons for such a price rise, let us look at them here:
  • The most important reason is that there has been a surge in trading volume taking place on Korean exchanges. In addition to it, the main 3 trading pairs for BCH are with Korean Won plus trading volume for BCH/KRW is nearly $1.5 billion.
  • Another important factor fueling price rises of Bitcoin Cash is the anticipation that network difficulty will go down further and make mining Bitcoin Cash more profitable.
  • Lastly, some people are expecting another split for Bitcoin taking place in near future, Segwit 2x, which will improve Bitcoin Cash’s position.
What are the reasons behind positive movement in Bitcoin Cash?
Let us examine few of the main reasons behind such positive movement.
  • Acceptance by Digital Currency Exchanges: Bitcoin Cash is expected to gain higher popularity as well as experience improvement in trading volumes due to the fact that many digital currency exchanges have started embracing this new cryptocurrency.
One good example is Yapizon which is a South Korean exchange that has started trading Bitcoin cash (BCH) tokens. On similar lines, other virtual currency exchanges in South Korea (such as Coinone and Bithumb) have announced that they will be adopting this cryptocurrency in the coming days.
  • Support Announced by Swiss Private Bank: Likewise, support for Bitcoin Cash announced by a Swiss private bank (Falcon Private Bank) is also going to further improve trading volume.
This support will mean that bank’s customers will now be able to use the functionality and buy, sell as well as hold Bitcoin Cash. More importantly, it will highlight the fact that the financial sector has started viewing cryptocurrency as legitimate store of value and peer to peer cash.
  • Inclusion into Bitcoin IRA: Another piece of positive news for Bitcoin Cash is that it has been included into Bitcoin IRA, which is a US firm that lets US citizens access cryptocurrency in any retirement account that has been approved by the IRS. Users hold funds in Bitcoin IRA until retirement.
  • Support Announced by Bitstamp: On similar lines, the decision by Bitstamp (European Bitcoin exchange) to add support for Bitcoin Cash will also help in improving its position. According to the announcement by Bitstamp, BCH will be receiving three trading pairs which would be BCH/USD, BCH/BTC and BCH/EUR.
  • Transaction costs are lower for Bitcoin Cash: Transaction costs are higher for Bitcoin Segwit and Litecoin.
  • @WintonARK states: The Chinese government prefers Bitcoin Cash to Bitcoin. One would postulate that more Chinese will be buying Bitcoin Cash as a result.
Mining of 8MB Bitcoin Cash Blocks
For some time the Bitcoin Cash blocks had been smaller in comparison to Bitcoin blockchain. However, that recently changed with mining of 8MB Bitcoin Cash block by BitClub network.

It is certainly great news for Bitcoin Cash supporters and works as a valid justification for the split that occurred from the Bitcoin blockchain. Additionally, the network cap of Bitcoin Cash is over $8 billion and may move up even further in the next few weeks. Likewise, trading volume is also rising for Bitcoin Cash and is presently at about $1 billion and has been on the rise.

Development teams working on Bitcoin Cash have said someday Bitcoin Cash blocks may be 1GB or larger to accommodate scaling.

Moreover, analysts are expecting network difficulty will move down even further in the coming days, making Bitcoin Cash more profitable to mine. At present, difficulty of Bitcoin Cash is up 1.93% in the past 24 hours.

All these developments are positive aspects for Bitcoin Cash and clearly highlight the fact that BCH is moving in the right direction as well as experiencing good growth.

A New API
Another promising news item for Bitcoin Cash is that an API is presently being implemented for all major web browsers which will allow users to use cryptocurrency for purchasing goods and services. Moreover, this API will facilitate storage of payment information directly within the browser.

This is certainly a positive move signifying greater recognition of Bitcoin Cash and other cryptocurrencies as payment technologies.

As we can see, Bitcoin Cash is certainly experiencing positive movement and is expected to expand even further in the near future. One can anticipate some smaller tokens and coins to have their value stripped out and added to Bitcoin Cash over time due to its superior properties. On a high note, Roger Ver has been quoted as saying Bitcoin Cash is for everyone in the world to use.

*The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Your investment could go to zero. This is a long term holding.

Disclosure: I own some Bitcoin Cash. Please follow me on Twitter.

Popular posts from this blog

Crypto Market Update 2

Puerto Rico, Taxes, and a Bitcoin Utopia

HandCash - Bitcoin Wallet App Interview