BCH Price Forecast for 2021
We’ll be sharing the top Experts predictions for Bitcoin Cash in 2021.
Read our Bitcoin Cash BCH Price Analysis for 2021
Bitcoin Cash (BCH) started life as an offshoot of Bitcoin (BTC), following the original cryptocurrency’s now-infamous hard forking of 2017. Whilst the two inevitably share many technical similarities, Bitcoin Cash sought to address the scalability issues of its predecessor and accommodates a much larger block size, which in turn allows more transactions to be included in each block. At its heart, Bitcoin Cash seeks to refocus the original intention of Bitcoin - to be a decentralised, peer-to-peer payment platform for everyday consumers.
The new formula appears to have been something of a success, as Bitcoin Cash is well and truly out of the shadow of its predecessor and at the time of writing was the 7th largest cryptocurrency by market capitalization, which stood just short of $7.5 billion.
Like most cryptocurrencies, Bitcoin Cash experienced a tumultuous year in 2020, with the COVID-19 pandemic putting the breaks on what had been a promising bull run. Following a chaotic summer, Bitcoin Cash’s fortunes appeared to turn a corner in September and prices have been steadily increasing since.
So is Bitcoin Cash still a good investment going forward? In the following Bitcoin Cash price analysis for 2021, we will weigh up the various factors affecting the cryptocurrency and find out what some experts are predicting for the year ahead.
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Bitcoin Cash - An Overview
An essential step in any Bitcoin Cash price analysis 2021 is detailing some of the technical particulars of the network and looking at the main ways in which it differs from Bitcoin.
As we have already noted, Bitcoin Cash was created when Bitcoin hit a hard fork back in 2017. When this occurred, anyone holding Bitcoin received an equivalent amount of Bitcoin Cash. This led to the latter having an unusually high debut price on crypto exchanges, at around $600.
By the time the fork occurred, the original Bitcoin had hit certain issues. The cost of confirmation on the blockchain had surged and transactions were plagued by backlogs and delays. It was intended that Bitcoin Cash would solve these issues with an increased block size. At the time, the block size on the Bitcoin network was limited to 1MB, whereas Bitcoin Cash increased the size to between 8 MB and 32 MB, thus allowing for up to around 25,000 transactions per block (as of September 2018) compared to the 1000 - 1500 possible via the Bitcoin blockchain. The intention of Bitcoin Cash was that it could be used for daily transactions, potentially competing with existing traditional methods, such as VISA or Mastercard.
Of course, there are plenty of similarities between BCH and BTC. Both rely on the Proof of Work consensus mechanism, which means that computers - or nodes - on the network solve complex equations to ‘mine’ for new coins. For this purpose, both Bitcoin and Bitcoin Cash use the world’s largest cryptocurrency miner, Bitmain. Initially, both coins shared the same mining algorithm (Emergency Difficulty Adjustment), although Bitcoin Cash later adjusted its version to make it easier for miners to generate the BCH token and prevent them alternating between BTC and BCH to their own advantage. The supply of both Bitcoin and Bitcoin Cash is capped at 21 million coins.
Interestingly, Bitcoin Cash experienced a hard fork of its own around a year after it came into existence. In 2018, it split into Bitcoin Cash ABC - what we now refer to as Bitcoin Cash - and Bitcoin Cash SV (Satoshi Vision). The forking was related to proposed updates to include smart contracts in Bitcoin Cash’s blockchain network and increase the average block size. BCH then underwent another hard fork in November 2020, as part of further planned updates to the network protocol.
So what does all this mean for our Bitcoin Cash price analysis for 2021? On paper, Bitcoin Cash should be a ‘better’ version of its predecessor, but as of yet it has not come close to rivalling Bitcoin. With the development of Bitcoin SV, which purports to have addressed issues with Bitcoin Cash, the technical particulars of BCH give us very little to go on when predicting price movements, but it is nonetheless important to be aware of how Bitcoin Cash differs from the other Bitcoin incarnations to help us predict potential divergence in each one’s price trajectory.
History of Bitcoin Cash Price Movement
One way to start forming a Bitcoin Cash price analysis for 2021 is with a retrospective of the cryptocurrency’s past price movement. This can help us identify patterns in how the charts have moved and also to some extent gauge how certain market forces might affect BCH in future.
As we have mentioned, Bitcoin Cash had a somewhat different start in life to many other cryptocurrencies. Whilst most coins - including Bitcoin - entered the market almost worth next to nothing, BCH started trading at around $600 from the outset. This was, of course, entirely down its creation being a result of the Bitcoin fork. However, there was initially plenty of investor support for the new coin and prices soared to over $2,400 by December 2017. But this initial success turned out to be something of a poisoned chalice as rumours of insider trading quickly began to circulate, prompting Coinbase to suspend BCH trading. This saw the value of Bitcoin Cash plummet to $704. Aside from a spike in April 2018, the downward trend continued until January 2019, when BCH was trading at an all-time low of $107. The rest of 2019 was also somewhat lacklustre, with Bitcoin Cash bouncing around between $200 and $300, before finishing the year at a disappointing $209.
It seems that many of the technological advancements that were promised by Bitcoin Cash failed to materialise - at least not to the extent that many investors were predicting. Contrary to initial expectations, the average size of blocks mined on Bitcoin Cash’s blockchain ended up being far smaller than those of Bitcoin, which meant that the increased transaction rates that were promised were not fully realised. Whatsmore, since the inception of Bitcoin Cash, Bitcoin’s transaction fees have been reduced significantly, not least thanks to the SegWit upgrade, reducing the advantages of Bitcoin Cash over its predecessor.
However, whilst things may be sounding somewhat pessimistic at this stage in our Bitcoin Cash price analysis for 2021, it seems investors still have some faith in the altcoin and things started to turn around going into 2021.
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Bitcoin Cash in 2020
It’s fair to say that 2020 can hardly serve as a benchmark for a Bitcoin Cash Price analysis for 2021; the COVID-19 pandemic was something of an anomaly that caused an unprecedented global downturn. However, it’s still useful to consider how coins weathered the storm - or didn’t, as the case may be.
After a subdued end to 2019, BCH soared from just over $200 to $393 by the 31st of January 2020. It continued to climb steeply, before hitting a 12 month high of almost $500 in early February. After a disappointing 2019, it looked as though Bitcoin Cash may have turned a corner, until the pandemic struck and its price dropped sharply, bottoming out at around $149.
Things improved slightly over the summer months and there was a surprise rally in August, which saw BCH creep up to over $309, before it went back into decline, down to between roughly $200 and $250 across September and October. However, once again Bitcoin Cash seems to be on the road to recovery, whilst its price growth may not have been as steady as other cryptocurrencies, it ended 2020 trading over $340 and was well on its way to breaking the $400 mark, prompting renewed interest and speculation from the wider crypto industry.
It remains unclear how the November hard fork will affect BCH price moving forward. In theory, a network upgrade should lead to bullish sentiment, but there have been issues with exchanges refusing to list the competing tokens resulting from the fork: Bitcoin Cash Node (BCHN) and Bitcoin ABC (BCHA). Coinbase, for example, announced that it will not be listing the latter.
Experts predictions for Bitcoin Cash in 2021
An essential consideration for any Bitcoin Cash price analysis for 2021 is whether or not there is any consensus between crypto industry figures as to how well BCH can be expected to perform in the year ahead. We found that opinions were somewhat divided over Bitcoin Cash, but here’s what a few prominent analysts and investors had to say:
Crypto expert and long-time advocate of Bitcoin Cash, Roger Ver, has reiterated his support for BCH, insisting that Bitcoin Cash is the only version that truly conforms to the original Satoshi whitepaper. He has recently been quoted as saying: “I am very bullish on Bitcoin Cash, just like I was when I was the very first investor of Bitcoin in 2011.” As far as a Bitcoin Cash price analysis for 2021, he believes that whilst BTC will see its value soar by 10 to 20 times in the year ahead, Bitcoin Cash price will at least double its value from what it is now. Mr Ver claims that BCH will continue to be popular because it can be stored and spent similar to cash, facilitating day to day spending.
Whilst Mike Novogratz has held back on making a Bitcoin Cash price analysis for 2021, he did take to Twitter to ask his followers what cryptocurrencies out of diem, bitcoin cash, USDC, and tether (USDT) “has the best chance of winning payments?” Many prominent voices in the crypto industry, including General Protocols’ developer Jonathan Silverblood, who said “out of the current contenders, I work on and believe in [bitcoin cash] BCH as the rails. In particular, I do so because they are focusing on the right use case, and are innovating in this field specifically.”
Controversial crypto investor and founder of hosting service Megaupload, Kim Dotcom is extremely bullish on BCH. “Bitcoin > great for asset storage, Bitcoin Cash > great for payments.” Bitcoin Cash at $310 today. I expect $3000+ next year. Why? More and more vendors accept crypto. Vendors want low fees and fast transactions. I’m bullish on BCH. I’ll retweet this in a year. Maybe earlier,” she tweeted recently before adding: “BCH has many use cases today. And K.im will use BCH.” Dotcom created the K.im platform, branding it as “the ultimate content monetization platform.”
Writing as the Times Money Mentor, Jedidajah Otte advises caution for altcoins in general - including Bitcoin Cash specifically. Whilst he does not offer a Bitcoin Cash price analysis for 2021, Mr Otte warns that crypto newcomers should “exercise caution” when approaching BCH, not risking more than 5% of their available investment funds.
Factors affecting Bitcoin Cash price
All cryptocurrencies are affected by Bitcoin in some form or another. The original cryptocurrency is seen as something of an indicator of the wider market and, given that BTC often operates as a kind of reserve currency in many crypto transactions, its performance is always going to be relevant to other coins that may be in your investment portfolio. This alone makes Bitcoin a key consideration for our Bitcoin Cash price analysis for 2021.
However, Bitcoin Cash is also effectively in direct competition with its predecessor, so there are other factors at play when considering how BTC could directly impact Bitcoin Cash. For example, BCH was intended to reduce transaction costs with larger blocks, but any technological innovations that allow Bitcoin to improve its own usefulness as a peer-to-peer payments platform will eat away at any advantages of Bitcoin Cash, which is likely to stunt any potential growth.
As such, anyone investing in BCH will need to keep a close eye on technological developments with regards to the original Bitcoin, as well as how BTC might be reflecting investor appetite for cryptocurrency in general.
Regulations related to cryptocurrency
Regulation is an ongoing concern for crypto enthusiasts and investors. Effectively, a single piece of aggressive regulation from one of the world’s major economies could reduce a coin’s value to almost nothing overnight. Ripple, for example, saw around 50% wiped off its value at the end of 2020, when the SEC ruled that its native token, XRP, was a tradable security rather than a currency.
However, it should also be remembered that there is the potential for positive regulatory changes, which could see huge gains for the cryptocurrency market in general. One of the most significant pieces of regulation for any future Bitcoin Cash price analysis for 2021 to consider, will be the upcoming EU regulatory framework that is due to be finalised over the coming months.
As we have discussed, Bitcoin Cash is intended to be a peer-to-peer payments platform for the general consumer. As such, any major retail chains or commercial platforms that start supporting BCH as a payment option will have a positive impact on the coin’s value. Payments platforms like Flexa have made it easier than ever for consumers to pay for things with crypto and PayPal has recently begun allowing users to buy and spend BTC, so BCH has some ground to cover in this sense.
Ultimately, the price of Bitcoin Cash, like any other tradable instrument, will be dictated by supply and demand. There are mixed opinions of Bitcoin Cash and its potential to upstage its predecessor, making it difficult to speculate on any potential surges in demand. A combination of the factors listed above will either motivate or demotivate investors, but the volatility of BCH means there is plenty of potential for savvy investors to make significant gains - if they can accurately predict when to get in and when to get out.
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Bitcoin Cash price analysis for 2021
Making an accurate Bitcoin Cash price analysis for 2021 is no mean feat. The altcoin has experienced changing fortunes since it was created in 2017 and many leading voices in the crypto sphere have failed to accurately predict the impact of BCH. Whilst even the most ardent Bitcoin Cash proponents cannot be anything but slightly disappointed in the overall performance of the coin, it should be noted that it has shown considerable resilience and has maintained its position as one of the top ten biggest cryptocurrencies by market cap.
Even turning to technical analysis from top cryptocurrency platforms does not paint an especially clear picture.
Smartereum is hugely optimistic, predicting that Bitcoin Cash price will hit $6700 by the end of 2021 and continue growing across 2022. Meanwhile, Tech Bullion has offered a more subdued prediction, believing that the November 2020 hard forking will lead to a bullish run on BCH, but maxing out at around $400 for 2021.
On the other hand, TradingBeasts forecasts suggest that BCH will stagnate throughout the next year, with the price of Bitcoin Cash hovering around $350 from January right through to December 2021.
Should you invest in Bitcoin Cash in 2021?
There’s little doubt that Bitcoin Cash has the potential to yield good returns in the coming year, but potential investors should heed the words of certain industry voices and approach the altcoin with caution. As our Bitcoin Cash price analysis for 2021 has highlighted, there are numerous factors that could affect the price of BCH and several of these are, to a large extent, unknown quantities.
Of course the same could be said of any other altcoin, but the success of Bitcoin Cash depends largely on its viability as a peer-to-peer payment system, as well as its maintaining some advantage over other cryptocurrencies competing in this space.
Another important consideration is that, whilst plenty of analysts are predicting growth for Bitcoin Cash in 2021, they differ hugely on exactly how much growth. The more optimistic estimates of BCH soaring to thousands of dollars should perhaps be taken with a pinch of salt. Instead, investors should manage their expectations and look for more subdued growth. A sensible target would be in the region of slightly above $400 - with anything more being viewed as a bonus.
Finally, the effects of the hard fork in November may yet to be fully realised. The more risk-averse investors may wish to wait it out for the first few weeks of 2021 before committing funds and adding BCH to their portfolios.
Bitcoin Cash price analysis - Conclusion
Bitcoin Cash has always been a somewhat divisive cryptocurrency. Whilst some industry experts believe it is everything that Satoshi had intended the original Bitcoin to be, others believe it has failed to deliver on its promises and what is often described as a hostile environment for miners will severely limit BCH’s capacity for sustainable growth. The last 12 months have been a trying time for all financial markets, but as our Bitcoin Cash price analysis for 2021 has pointed out - BCH seemed to be making some headway with a solid bull run before the COVID pandemic hit.
How Bitcoin Cash will perform in the first few weeks of 2021 will largely depend on the industry reaction to the November forking and whether exchanges like Coinbase relax their stance on refusing to list both Bitcoin Cash Node and Bitcoin ABC. With this in mind, it’s possible that many investors will hold off until the effects of the fork become clear - which could further delay price growth.
Of course, day traders will relish the frequent fluctuations in Bitcoin Cash’s value, but investors looking at the long term will need to keep close tabs on several factors: in particular, the result of the Bitcoin Cash fork, any upcoming regulatory changes and developments within the original Bitcoin blockchain.
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Bitcoin Cash price analysis 2021 - FAQ
Will Bitcoin Cash go up in 2021?
You may find the occasional Bitcoin Cash price analysis for 2021 that unanimously predicts BCH will increase in value over the coming year, but the reality is it could go either way. There are many signs pointing to a positive 2021, but there are also factors that could scupper potential growth. In any case, Bitcoin Cash is certainly a cryptocurrency to watch in 2021.
How will the hard fork affect the value of Bitcoin Cash?
To say the Bitcoin Cash hard fork of November 2020 was contentious would be something of an understatement. Whereas many have welcomed the event as a much-needed upgrade to the protocol, some exchanges have refused to list the two resulting cryptocurrencies. It’s too early to say how the fork will affect prices moving forward, but the likelihood is things will become clear in the opening weeks of 2021.
What are the experts predicting for Bitcoin Cash in 2021?
There have been some differing opinions among experts as to how BCH will perform in the coming year. Of those who made a Bitcoin Cash price analysis for 2021, Kim Dotcom is perhaps the most optimistic, predicting that the altcoin could exceed $3,000 next year. However, the most prominent analysts predict far more subdued growth.
Is now a good time to invest in Bitcoin Cash?
2021 is being touted as a big year for cryptocurrency in general, so it will be of little surprise that many investors are turning their attention to this exciting new market. Whilst some coins are predicted to see huge growth, others are looking more uncertain. Bitcoin Cash has plenty of potential for growth and many experts believe that 2021 will be a good year for the Bitcoin offshoot. However, investment in BCH should only be made as part of a diversified portfolio - especially as the results of the hard fork in November 2020 are yet to be fully observed.
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If our Bitcoin Cash price analysis for 2021 has convinced you of BCH’s potential for the year ahead, then you’ll need to find an exchange that will allow you to purchase cryptocurrencies. We recommend eToro as an option for novice investors, as it supports all the major tokens - including BCH - as well as offering plenty of analytics and educational resources.
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