Digital payments and cryptocurrencies have taken over the investment market today. People are looking forward to reaping good opportunities and benefits from them.
Bitcoin Cash is one significant cryptocurrency that has gained much popularity. Bitcoin Cash, the spin-off of the Bitcoin blockchain, is on a mission to fulfill the promise of Bitcoin, being the best peer-to-peer Electronic Cash.
Initiated in 2017, Bitcoin Cash has seen a high surge in its price over the last few years. What investors and traders are curious to know is whether Bitcoin Cash is going to explode in 2021.
A Look At 2021: Is Bitcoin Cash All Set For A Massive Bull Run?
Created from a fork in the original Bitcoin blockchain, BCH has all the unique features of BTC. It is a more advanced cryptocurrency that fills the gap created by Bitcoin in the crypto space.
This cryptocurrency has a spew of advancements, forks, and adoptions in store for the coming years. Let us see the factors that might drive BCH to increase this year.
Several reasons back up the prediction that Bitcoin Cash is going to explode in 2021. Here are a few among them.
#1: BCH’s Rally Since Its Inception
Launched in 2017, and since its initiation, Bitcoin Cash had already positioned itself as a prominent player in the crypto space. It started its initial days with a price of $549.3 in July and surged higher, hitting an all-time high of $4,355.62 on December 20, 2017.
For a cryptocurrency just initiated, an increase of 692.94% is remarkable. Further, in 2019 and 2020, BCH saw several upswings but mostly fluctuated between $230 and $270 for a longer time. BCH kickstarted 2021 with a price of $348.9. And investors like to believe that it is probably going to explode by the end of this year.
#2: Better Version Of Bitcoin
The purported goal of Bitcoin Cash is to re-establish Bitcoin’s initial promise. It aims to become the global peer-to-peer electronic cash. It was created as a fork of the Bitcoin blockchain to solve some crucial issues that Bitcoin faced.
As the popularity of Bitcoin surged, more users started to use the network. The original Bitcoin blockchain already had issues with scalability and block size. But with an increase in users, it outgrew its blockchain as its blocks got clogged. Both its price and transaction rate scaled high, making the coin highly volatile.
It was then that Bitcoin developers came up with a new chain known as Bitcoin Cash. It had bigger blocks that could include Bitcoin’s ever-growing user base. BCH was designed as an enhanced Bitcoin version with high scalability, reduced cost, and faster transaction speed. Bitcoin Cash thus supported cryptocurrency as a means of payment rather than just a mere store value.
#3: Bitcoin Cash Offers Faster Transaction With Larger Blocks
Compared to Bitcoin, BCH is a faster blockchain and can handle more transactions at a faster pace. It has a bigger capacity of blocks. Initially, it could handle 8MB of data while Bitcoin could only handle just 1MB. With new updates, BCH can now manage almost 32MB of data. A stress test in September 2018 revealed that the BCH network was capable enough to handle 25,000 transactions per block.
BCH deploys an advanced technology known as the segregated witness or SegWit2x. It makes the amount of data that needs to be verified smaller, thereby enabling more transactions per block.
#4: BCH, A Scarce Cryptocurrency With Multiple Use Cases
BCH has a unique combination of gold-like scarcity with a spendable nature of cash. Just like Bitcoin, it has a limited supply of 21 million coins. Currently, it has a circulating supply of 18,870,118.75 BCH coins. Today anybody with a smartphone or computer can accept Bitcoin Cash as payment, boosting its demand in the market.
Along with peer-to-peer payments between individuals, Bitcoin Cash can also be a payment method in multiple places. It also enables new micro-transaction economies. Since it has low fees, BCH is used to tip content creators and is often used to reward app users.
With multiple use cases but a limited supply, the value of BCH will eventually rise in the market. Crypto enthusiasts predict that with an increase in value and demand, Bitcoin Cash is likely to explode its price in 2021.
Read More: A Beginner’s Guide to Bitcoin Cash and Tips for Investing in It
Major Forks Of Bitcoin Cash
Bitcoin Cash was created with a hard fork in August 2017, with a mission to create a coin with a larger block size. Later in 2018, it underwent yet another major hard fork as a part of its upgrade.
With the Fork, BCH got split into Bitcoin Cash ABC (the Bitcoin Cash we use now) and Bitcoin Cash SV (the Satoshi Vision). Bitcoin Cash SV further increased the size limit of its blocks to 128MB. It included several changes to its blockchain. For instance, a notable inclusion was the Canonical Transaction Ordering Route (CTOR), which helps in rearranging the transactions in a block to a specific order.
Where Does Bitcoin Cash Stand Today
Bitcoin Cash has shown an increase of +69.56% since the beginning of 2021. It currently sits at $586. It has positioned itself at 19th in the CoinMarketCap ranking with a market cap of around $11,074,536,374. Taking into the picture all its advancements, upgrades, and adoptions, BCH might likely explode in 2021.
Advancements In The Bitcoin Cash Ecosystem
Bitcoin Cash developers are building multiple developments, new features, projects, and businesses using BCH. A significant thing that it is pushing forward is its new adoptions. It has plans to create products and features that delight customers, support merchant solutions, and onboard new users, developers, investors, etc.
Another notable ambition is to make BCH a valid competitor of payment platforms like Visa and PayPal in terms of processed transaction volume.
Why Bitcoin Cash is Going to Explode This Year: The Bottom Line
Bitcoin Cash has become a more valuable coin with its major forks, use cases, advancements, and plans. Along with inheriting every unique feature of Bitcoin, like a limited supply, robust consensus mechanism, etc. BCH has also successfully established itself as a highly scalable, fast, cheap, and reliable cryptocurrency for transactions in the market.
Along with its plethora of use cases, the digital asset also has plans for advancements in privacy, smart contracts tokens, and this is also a reason why Bitcoin Cash is going to explode in 2021.
According to crypto enthusiasts. BCH is poised to see growing heights; thanks to its latest updates, Bitcoin cash will make its space in the favourite list of investors for this year and the foreseeable future. Therefore, it might explode tremendously in 2021 as it has plenty of interest in the crypto space today.
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