Is Bitcoin Cash dead? • Cryptanalysis • Benzinga

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 congested, giving you fast and cheap transactions in the process. Bitcoin Cash was forked from Bitcoin in 2017.

Along with the larger block size, Bitcoin Cash also made its chain smart contract compatible, allowing decentralized applications to be built on top of the chain. Most features remain the same as Bitcoin, including a hard cap of 21 million coins and a proof-of-work (PoW) consensus method.

The underlying code of Bitcoin was modified by a group of developers in 2017, who forked the chain into Bitcoin Cash; its BCH currency closely follows the price movement of Bitcoin. The idea of ​​making Bitcoin easier to transact is an honorable one, but its gold-like store of value and security may have been compromised in the process.

Why Bitcoin Cash Down?

The entire crypto market has fallen following an 8.6% rise in the IPC last week. The rise in the consumer price index was much higher than expected and came during a Fed tightening cycle, making it very bearish for markets. This spike in inflation has refuted the narrative that inflation is transitory.

Investors are rushing for liquidity, crushing the stock and crypto markets. Fears of stronger measures from the Fed to control inflation have affected markets around the world. The Fed will meet this June to discuss additional actions. The expected 50 bps increase could turn into a stronger move, perhaps as high as 75 bps. Fed Chairman Jerome Powell’s tone on inflation will also be important. If Powell sounds too harsh, it could result in further pain for the markets.

Bear markets tend to last just under a year, or about 10 months. Accumulating large positions when assets are cheap is how many create wealth. Buying when others are afraid has been a strategy used by many great investors; With few wanting to touch risky assets, it may be time to start accumulating. Whether Bitcoin Cash is the right risk asset for you is a decision you have to make.

Bitcoin Cash Price Movements

Bitcoin Cash (BCH) has not received much publicity lately. With worsening market conditions, its value fell in 2022 from over $390 per coin to just over $130 per coin. Bitcoin has also had a rough year, dropping its price from $47,000 to $25,000.

If this market stays bearish, Bitcoin Cash is a name that will likely get squashed. A coin with few developers, use cases, or any real value outside of speculative investment is destined for a bumpy ride when liquidity in a market dries up.

Bear markets have occurred where currencies lost up to 99% of their value but came back stronger in the next bull market. Even if Bitcoin Cash were to lose most of the value, you should hesitate before declaring it dead.

cryptocurrency market cycle

The market cycle appears to be heading into a crypto winter. Bitcoin and other altcoins are crashing, stablecoins are failing, and investor sentiment is low. All signs point to a bear market, but this time it could be exciting for crypto investors. Money is made in bear markets and made in bull markets.

Coupled with great buying opportunities, investors see the crypto market more clearly. When the market is pumping, it is much more difficult to understand which crypto projects have real value. When everything is tense, values ​​are realigned.

The technology underlying these cryptocurrencies has not changed; market conditions and consumer sentiment have. Keeping a cool head is important, and making emotional trades is rarely a good strategy. By following a dollar cost averaging strategy, you can help eliminate emotional trading. This practice can reduce panic sales and prevent you from going overboard with these attractive new prices.

Where to buy Bitcoin Cash

1 minute review

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 simple to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s exclusive Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and improved functionality.

Although Coinbase doesn’t offer the most affordable prices or lowest fees, its simple platform is easy enough for complete beginners to master in just one trade.

Better for

  • New crypto traders
  • Cryptocurrency Traders Interested in Major Pairs
  • Cryptocurrency traders interested in a simple platform

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins

  • Higher rates than competitors

Bitcoin Cash is available for purchase on various trading platforms, most notably Coinbase Global Inc. (NASDAQ: CURRENCY). Another option is to use a decentralized exchange (DEX). To use a DEX, a non-custodial wallet is needed. Some leading non-custodial wallets include MetaMask wallet and Coinbase (different from their trading platform).

So is Bitcoin Cash dead?

Bitcoin Cash may not survive this market selloff. Historically, a long list of currencies do not survive bear markets. With few bullish cases, Bitcoin Cash could join the long list of dead coins. If the markets reverse, Bitcoin Cash is likely to go higher with Bitcoin. However, if it is a prolonged crypto winter, it is not known if Bitcoin Cash will ever return to its all-time highs.

Leave a Comment