Bitcoin Cash is a form of peer-to-peer payment with a larger block size than Bitcoin. This larger block size helps make the chain less crowded, allowing it to transact quickly and cheaply. Bitcoin Cash was hard derived from Bitcoin in 2017.
In addition to the larger block size, Bitcoin Cash has also made its chain compatible with smart contracts, allowing decentralized applications to be built on top of the chain. The majority of features remain the same as Bitcoin, including a hard cap of 21 million coins and a proof-of-work (PoW) consensus method.
The code behind Bitcoin was changed by a group of developers in 2017, which turned the chain into Bitcoin Cash; its BCH coin closely follows the price movement of Bitcoin. The idea of facilitating transactions with Bitcoin is honorable, but its gold-like store of value and security may have been compromised in the process.
Why Bitcoin Cash Down?
The overall crypto market is down after the CPI spiked 8.6% last week. The consumer price index spike was much higher than expected and occurred during a Fed tightening cycle, making it very bearish for markets. This spike in inflation disproved the narrative that inflation is transitory.
Investors are rushing for liquidity, crushing stock and crypto markets. Fear of stronger measures by the Fed to control inflation impacted markets around the world. The Fed will meet in June to discuss new measures. The expected 50 BPS rise could turn into a stronger move, possibly up to 75 BPS. Fed Chairman Jerome Powell’s tone on inflation will also be important. If Powell seems too authoritative, it could lead to more pain for the markets.
Bear markets tend to last just under a year, or around 10 months. Accumulating good positions when assets are cheap is how many create wealth. Buying when others are scared has been a strategy used by many top investors; as few want to touch risky assets, it might be time to start accumulating. Whether Bitcoin Cash is the right risk asset for you is a decision you need to make.
Bitcoin Cash Price Movements
Bitcoin Cash (BCH) hasn’t received much hype lately. With deteriorating market conditions, its value has dropped in 2022 from over $390 per coin to just over $130 per coin. Bitcoin also had a rough year, with its price dropping from $47,000 to $25,000.
If this market remains bearish, Bitcoin Cash is a name that will likely be crushed. A coin with few developers, use cases, or any real value outside of speculative investment is bound to have a turbulent race when a market’s liquidity dries up.
Bear markets in which coins have lost up to 99% of their value but come back stronger in the next bull market have occurred. Even if Bitcoin Cash were to lose a majority of value, we must hesitate before declaring it dead.
Cryptocurrency market cycle
The market cycle appears to be heading for a crypto winter. Bitcoin and other altcoins are crashing, stablecoins are failing, and investor sentiment is weak. All signs point to a bear market, but this time could be exciting for crypto investors. Money is made in bear markets and made in bull markets.
Along with great buying opportunities, investors are viewing the crypto market with increased clarity. When the market is booming, it is much more difficult to understand which crypto projects have real value. When everything tightens up, values realign.
The technology underlying these cryptocurrencies has not changed; market conditions and consumer sentiment have. Keeping a cool head is important, and making emotional exchanges is rarely a good strategy. By following a dollar-cost averaging strategy, you can help eliminate emotional trading. This practice can reduce panic selling and prevent you from expanding at these attractive new prices.
Where to Buy Bitcoin Cash
Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally easy to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Although Coinbase doesn’t offer the most affordable prices or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single transaction.
- New Cryptocurrency Traders
- Cryptocurrency Traders Interested in Major Pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to use
- Full mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto to learn more about available coins
- Higher fees than competitors
Bitcoin Cash is available for purchase on a number of trading platforms, including Coinbase Global Inc. (NASDAQ: CURRENCY). Another option is to use a decentralized exchange (DEX). To use a DEX, a non-custodial wallet is required. Some of the major non-custodial wallets include MetaMask and the Coinbase wallet (different from its trading platform.)
So, is Bitcoin Cash dead?
Bitcoin Cash may not survive this market sell-off. Historically, a long list of coins does not survive bear markets. With few instances of bulls, Bitcoin Cash could potentially join the long list of dead coins. If the markets reverse, Bitcoin Cash will likely rise along with Bitcoin. However, if this is an extended crypto winter, it is unclear if Bitcoin Cash will ever return to all-time highs.