- Bitcoin Cash (BCH) is the hard fork of Bitcoin, created to solve the Bitcoin scaling problem.
- The network is going will be going through a protocol upgrade on November 15.
- Price forecasts for BCH are reserved for 2020 and more optimistic for 2021 and 2025.
- The Bitcoin Cash price prediction for 2020 varies from $219 to $286.
- The BCH price is expected to linger from $320 to around $660 in 2021.
- Meanwhile, in five years perspective, BCH should cost from $1.350 to $3.135.
In a fast-evolving cryptocurrency market, you have to be something to last. Since dozens of projects become one-day starts, Bitcoin Cash (BCH) continues to stay among the leading digital currencies.
Being one of many Bitcoin-based altcoins, Bitcoin Cash found its way into the Olympus of cryptocurrencies. It has maintained the popularity during the years since splitting from Bitcoin. Being not too risky, nor offering highly gains in the upcoming future, Bitcoin Cash might be a proper asset to invest for those making their first steps in cryptocurrency. If you are interested in Bitcoin Cash, here is the review of its historic and current movements as well as the BCH price prediction for 2020,2021 and 2025.
What is Bitcoin Cash?
Bitcoin Cash (BCH) is the hard fork of Bitcoin. The digital currency separated from the world’s leading crypto asset back in 2017 and currently is the 6th biggest cryptocurrency by market capitalization, according to CoinMarketCap.
The history of Bitcoin Cash started in August 2017 when the BCH split from its parental Bitcoin. The protocol upgrade was made with a belief that larger transaction blocks will solve the Bitcoin scaling problem.
To be clear, the Bitcoin scaling problem was coded in its nature. The protocol processed a low number of transactions per second, making them slow and expensive. There were only a few options to solve the problem: to reduce the number of transactions per block or increase the size of the same blocks.
The protocol upgrade occurred in 2017 when the block size was increased from 2 MB to 8 MB and the hard fork happened. The newly born Bitcoin Cash network became able to process a higher number of transactions. This means that BCH transactions became faster compared to Bitcoin’s and also cheaper, as the transaction fees automatically decreased.
The hard fork of Bitcoin split once again in 2018, creating two cryptocurrencies: Bitcoin Cash and Bitcoin SV. It also went through its first halving in April 2020, marking the reward for miners cut in half from 12.5 to 6.25 BCH. The asset is of the finite (21 million BCH) supply and thus is the scarce asset with a circulating supply of nearly 18.5 million BCH at the time of publishing.
The 6th biggest cryptocurrency currently is worth over $4.9 billion and trades at $268 on digital asset exchanges.
What is BCH used for?
Bitcoin Cash is a digital currency that enables online transactions without depending on banks, credit cards, and other middlemen. It is one of the most common digital currencies used for peer-to-peer (P2P) transactions or cross-border remittance services.
The network fees of BCH are extremely low (less than a penny), thus the digital coin is accordingly popular for making micro-transactions or even tip the user’s content on social networks like Reddit.
Since digital currency is still a volatile asset, the price fluctuations might become quite high in the short term bringing the lucrative profits for traders. Moreover, one of the biggest cryptocurrency investment managers Grayscale recently launched public trading for shares on its Bitcoin Cash Trust.
Bitcoin Cash price history
For those considering the investment in Bitcoin Cash (BCH) it could be helpful to have a broader view of the historic BCH price movements. Bitcoin Cash entered into cryptocurrency exchanges in August 2017. Since then it has gone the long way, peaking at the all-time high of $3.785 in December 2017 and reaching the record lows of $76 the year later (December 2018), according to the data of CoinGecko.
Since then the asset price has been steadily growing. Bitcoin Cash has twice approached the price level of $500 in June 2019 and in February 2020, however, shortly thereafter the price corrected experiencing sharp falls.
The latter drop lasted almost a month when the BCH fell from its $491 highs on February 10 to the $149 on March 13 and lost almost 70% of its value. Shortly after the mid-March global market crash when the majority of digital assets lost their value, BCH began to recover steadily climbing up and surpassing the $300 level in mid-August. The asset’s price is below this resistance level and sits at $277 at the time of publishing.
Bitcoin Cash price forecast
Bitcoin Cash is among the top 5 digital currencies at the time of publishing. However, there are opinions across the cryptocurrency markets predicting an even brighter future for BCH, which however depends on the developers of Bitcoin.
Bitcoin is well known for its scalability problem. This comes from the fact that the BTC network is scarce and has a limited supply of 21 million blocks. Due to the protocol, Bitcoin has a limited rate at which it’s network can process transactions. This shortage of Bitcoin however acts like a background and guarantee for the existence of Bitcoin Cash.
If there will not occur any changes to the Bitcoin protocol, it’s hard fork Bitcoin Cash will remain the one able to process a higher number of transactions. The fact will work as a trampoline for the asset’s price growth as well.
There are various technical improvements planned for Bitcoin Cash this year, including BCH wallet support and even the Telegram tipping bot, that allows Telegram users to give each other tips in BCH for content.
However, the most important is the protocol upgrade scheduled on November 15. The network update will include the so-called Coinbase rule, that aims to provide critical funding to make the Bitcoin Cash network able to be more competitive. The protocol upgrade will come with the new difficulty adjustment algorithm and the so-called Coinbase rule, which will reject all newly mined blocks if they do not contribute the 8% reward to fund the protocol development.
Having in mind the fundamentals, they might look like a positive factor for BCH price to increase. However, the technicals show otherwise, at least for 2020.
BCH price prediction 2020
According to the insights of cryptocurrency trader, SpartaBTC Bitcoin Cash currently is on its long-term bearish pennant pattern, which started back in the end of 2019. At the end of August, when this article is published, the BCH price is at the resistance of the main trend’s downtrend line.
If the price won’t break the resistance and follows the pattern obediently, the BCH price should linger among $286 and $219 in the last days of 2020. However, if it would break through the resistance line and consolidate above, the reversal of the main trend is possible, according to the prognosis of SpartaBTC.
Accordingly, the cryptocurrency exchange aggregator LongForecast predicts Bitcoin Cash will be worth between $233 to $268 by the end of 2020. According to the website, it uses statistical methods of prediction based on the existing historical data, including correlations, changes in the availability, trading growth, regulatory intervention degree and frequency of significant events over time.
BCH price prediction 2021
The trader Olutobi-Ogunsemore gives quite similar BCH price prediction as SpartaBTC, however on a bit wider scale. Following his technical analysis, the bearish pennant pattern of Bitcoin Cash might last all through 2021. According to him, in case BCH will act within the resistance and support lines, its price could linger within $380 at and $320 at the end of 2021.
However, if BCH breaks through the resistance at some point, its next resistance level by the end of 2021 could be about $500, meanwhile the $408 acting as a support.
In the meantime, the popular digital asset price prediction aggregator DigitalCoinPrice claims that Bitcoin Cash will cost around $662 by the end of the year.
Bitcoin Cash price prediction 2025
Predicting the long-term price of digital assets might be a tricky business without strong fundamentals. This is why there are no proper Bitcoin Cash price forecasts for the 5-year long perspective done by traders.
Contrary to them, the artificial intelligence algorithms do offer various Bitcoin Cash price forecasts for 2025 as well. Based on the historical price moments, they do calculate the possible future price of the asset. However, it is important to have in mind that their calculations are based strictly on technical facts and do not include external factors that play an important role in price changes. Despite that, it is interesting to see what algorithms predict for Bitcoin Cash in 2025.
According to the forecasts of a popular CryptoGround website, Bitcoin Cash will follow the uptrend and increase over $1000% within five years’ time, approaching the highs of $3.135by the end of 2025.
Meanwhile, another artificial price aggregator DigitalCoinPrice forecasts the Bitcoin Cash to reach $1.215 after the 5 years. The website’s algorithms suggest that BCH will continue to grow steadily thereafter and reach the $1.350 mark in 2026.
Is Bitcoin Cash a good investment?
Bitcoin Cash is said to be one of the most important hard forks in the history of digital assets. Moreover, it will be going its own hard fork this fall, implementing changes that might possibly play a huge role in the evolution of BCH. The better-maintained infrastructure might allow Bitcoin Cash to become a stronger asset that could be more competitive with other digital currencies like Ethereum.
Despite the optimistic fundamentals, the technicals remain more reserved for the present year as the asset is in the bearish trend pattern. The price though is predicted to steadily grow in the upcoming years. However, there is always the possibility of external factors to influence the price movements, that can not be foreseen at the moment. This is why it is important to evaluate various aspects and make your own research before investing in Bitcoin Cash.