Bitcoin Cash: BCH price and technical analysis | Bullbear Analytics

Currency name(s):  Bitcoin Cash (BCH); Bitcoin ABC in November 2018 but that token took over the BCH ticker after it was seen as the dominant fork
Genesis Block: August 2017
Total Supply: the current supply of Bitcoin Cash tokens is around 17.8 million tokens; the maximum supply is capped at 21 million tokens, same as Bitcoin
Algorithm: SHA-256
Features: better scalability, faster transaction speeds, lower transaction processing fees
Website: https://www.bitcoincash.org/

What is Bitcoin Cash?

What started off as a fork of Bitcoin is now a fully developed cryptocurrency network that stands in the top 5 most valuable networks in the world. Bitcoin Cash was derived directly from Bitcoin blockchain, and it was a community activated hard fork with the intent to raise the blocksize limit. Namely, before SegWit Bitcoin had a 1-megabyte block, while Bitcoin Cash currently has 8 megabytes which is still far more block space than BTC has. This change was done in order to increase the number of transactions per second as due mainly to the fact that bitcoin encountered a scalability problem back in 2016-2017 when the network was growing exponentially. Consequently, increasing the number of transactions reduced the wait times for confirmations, and reduced fees.

Before Bitcoin’s popularity skyrocketed, scalability was discussed but no solution was agreed upon due to differences in opinion as to the best way to increase throughput. This impasse gave the Bitcoin Cash proponents the impetus needed to hard fork to a new coin with the help of Roger Ver and BitMAIN, thus the birth of BCH, but it also opened the door to other forks that have divided the bitcoin cash community even further. Also note that not long after the original bitcoin cash fork, bitcoin core adopted a protocol change called SegWit that did increase capacity and allowed for the lightning network which promises to scale bitcoin beyond even Visa and Mastercard someday. 

Technology

As Bitcoin Cash is forked from Bitcoin, it functions in a similar manner to the original Bitcoin network. Namely, it uses the SHA-256 algorithm to create and verify new blocks and then adds them to the blockchain for confirmation. The only major difference between BCH and BTC is the aforementioned blocksize parameter which is still much larger in BCH, and although this certainly increases throughput capacity it also makes running a node increasingly difficult for individual users. Like all protocol changes/upgrade, some sacrifices have to be made. 

As previously mentioned, another important event that happened within the Bitcoin Cash community and established further technological development was the so-called hash war. Essentially, there were two sides within the community – the Bitcoin ABC and Bitcoin SV – which provoked a hard fork of the Bitcoin Cash blockchain. Both sides wanted to change the block sizes (Bitcoin ABC was pushing for 32-megabyte blocks, while Bitcoin SV went for 128-megabyte sizes), and both sides wanted to modify the way transactions are made. Eventually, the hash rate, chain length, number of nodes and community approval of Bitcoin ABC outperformed those of Bitcoin SV, so it claimed the ticker of Bitcoin Cash and became the dominant fork.

Bitcoin Cash Markets

Bitcoin Cash was created with a goal to be an improved version of the original Bitcoin blockchain and although in the sense of blocksize this is true, in terms of market performance against bitcoin it absolutely is not. It's not in terms of hashing power, nodes, or transaction counts so at this point the bitcoin cash experiment has fallen short of its proponent's hopes. That's not to say that the BCH markets are not liquid and tradeable, they very much are, although we think its more important to focus on the BTC pair rather than its USD counterpart. 

Bitcoin Cash Trading

The Bitcoin Cash network currently has an overall market cap of around $5.5 billion, which puts this cryptocurrency comfortably in the top five of the most valuable blockchain networks, with Bitcoin, EthereumRipple, and Litecoin also in the top five. The highest price per Bitcoin Cash token ever recorded was $4355, and it was seen in December 2017 during the massive cryptocurrency price rally. The lowest price per token was recorded in December 2018 when the whole cryptocurrency market was experiencing a market correction when the price for one Bitcoin Cash was around $75.

Many markets offer Bitcoin Cash trading pairs for other cryptocurrencies, and this token can be traded for Bitcoin, Ethereum and Tether among others. Bibox, OEX, and HitBTC among others offer cryptocurrency trading pairs, and fiat currency pairs are supported as well. Kraken, Bitfinex, and Bitstamp are the markets where Bitcoin Cash can be bought and sold for US dollars.

The crypto space is growing large, and it is difficult to keep information about all the various networks/assets straight. We do our best, but information on this page has not been verified for accuracy, and is provided as-is, for your own consumption. If you find an error that needs correcting, please email us at support@bullbearanalytics.com.

Disclaimer: Please always do your own due diligence, and consult your financial advisor. Author owns and trades bitcoins and other financial markets mentioned in this communication. We never provide actual trading recommendations. Trading remains at your own risk. Never invest unless you can afford to lose your entire investment. Please read our full terms of service and disclaimer at the BullBear Analytics Legal.