What will happen to the Bitcoin Cash price in 2021? Cryptocurrencies have gained immense popularity. However, investors have always wondered what really drives the Bitcoin Cash price?
Especially at this time when the article is being written, cryptocurrencies are experiencing tremendous growth, with Bitcoin at the top, aiming for 60K again.
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But, what really drives the Bitcoin Cash Price?
There are mainly three factors that drive Bitcoin Cash Price:
- Demand and institutional awareness
- Correlation to Bitcoin
- The potential to become a leading online payment tool
Here at Trading Education, we analysed these three factors and below we will show you in more details what we have found out.
If you want to get informed in detail about Bitcoin Cash price prediction, take a look at this detailed price prediction forecast for Bitcoin Cash.
Why Bitcoin Cash?
Why should investors consider investing in Bitcoin Cash?
Bitcoin Cash, in a way, belongs to the group of new cryptocurrencies because it came out on June 24, 2017. So precisely in the year of the cryptocurrency boom.
Bitcoin Cash is a fork of Bitcoin, meaning that initially, it came out as the second version of Bitcoin. Its launch price was $543, to go after five months to the highest record in its history of $3,556.
Although Bitcoin Cash is a fork of Bitcoin, it does not mean that their prices move the same way. Bitcoin Cash, differently known as Bcash, split up in 2018 in Bitcoin Cash and Bitcoin SV.
Bitcoin Cash is ranked as the 19th largest cryptocurrency. Its market cap is $11,074,536,374 as for now.
At the time of writing, Bitcoin Cash has experienced a drastic increase in value, amid overall cryptocurrency price increases recently. The price of Bitcoin Cash at the moment is $586 and experts predict an ongoing increase for the coin, which makes it a good investment option for investors.
All-time Bitcoin Cash price chart. Source: Coinmarketcap
Would you consider investing in Bitcoin Cash BCH?
What drives Bitcoin Cash Price?
Cryptocurrencies are now seen as a safe haven asset, or digital gold, as in 2020 there was a massive institutional investment, with Paypal at the helm, which decided to offer crypto services and is buying Bitcoin in large quantities.
“As central banks continue printing more money to alleviate the financial downturn, investors are looking for an asset that serves as a hedge and bitcoin seems to be the answer,” Konstantin Anissimov, executive director at London-based cryptocurrency exchange CEX.IO told The Independent.
Cryptocurrencies are going through a bull-run right now some experts claim.
But, let’s see what really affects the price of Bitcoin Cash?
3 Factors will drive the Bitcoin cash price in 2021
Factor 1: Demand and institutional awareness
The purpose of Bitcoin Cash as a blockchain is to become the leading online payment tool. So, as a much more competent blockchain than Bitcoin itself, Bitcoin Cash finds more application in practice. Bitcoin Cash processes transaction faster than Bitcoin and with lower fees also.
Since it is perfect as such, there is the possibility that various financial companies will adopt it to an even greater extent, thus affecting its price and increasing its value. Because, as the basic rule of economics says; as demand increases, so does the price.
Factor 2: Correlation to Bitcoin
Altcoins are correlated with Bitcoin, and consequently, when the price of Bitcoin changes, it also affects the price of altcoins. Bitcoin Cash is one of the altcoins that is mostly correlated with Bitcoin. If we take as an example the period, April-June 2019 Bitcoin Cash showed correlations between 74% and 82% with Bitcoin.
Correlation between Bitcoin and altcoins from April-June 2019. Source: Cointelegraph
Reputable cryptocurrencies such as Ethereum, Litecoin, Bitcoin Cash, NEO, Monero and XRP are always highly correlated with Bitcoin’s behaviour. So investors will consider Bitcoin Cash as a proper investment, in bullish times, because there are good opportunities for high returns.
Factor 3: The Potential of Leading online payment tool
Can Bitcoin Cash become the main blockchain for online payments?
As aforementioned, Bitcoin Cash is a more competent blockchain that Bitcoin itself, with faster transactions and lower fees. Therefore, Bitcoin Cash has the potential to become the main blockchain for online payments.
Interesting enough, the thing that pushed the hard fork was the split of developers into two groups. One group wanted to put an 8 per cent tax on Bitcoin Cash mining, with the aim that the 8 per cent would be redistributed to finance the development of the protocol.
Bitcoin Cash Node did not support the idea, thus receiving more support and became the winner blockchain by not deciding to tax their community. This is likely going to affect the price pushing it up as there will be more people that will be willing to buy the coin.
Although Bitcoin Cash has been controversial, it has its own supporter club which lately has been active, promoting the coin.
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How to Invest in Bitcoin Cash for 2021
Considering the factors mentioned above, we can conclude that the price movement of Bitcoin Cash will depend on the demand and on the real potential of its blockchain to become the main online payment tool in the near future.
Also, Bitcoin Cash knows how to surprise. If we go back in the first quarter of 2019, Bitcoin Cash had experienced more than 200% growth within six months. During this period, Bitcoin Cash grew immensely as it was being widely adopted, and its infrastructure got strengthened.
Bitcoin cash (BCH) markets had increased by 213% in the first six months of 2019. Source: Bitcoin.com
Some of the exchanges where Bitcoin Cash trades the most are Binance, Digifinex, Hitbtc, Coinbase, Bitstamp and Bitforex.
But how much will the Bitcoin Cash price go in 2021?
“The reasons I started investing in Bitcoin in 2011 are the exact same reasons I’m investing in Bitcoin Cash today”, Roger Ver, the co-creator of Bitcoin Cash tweeted back in 2018, hinting to the fact that Bitcoin Cash could experience something similar to Bitcoin in the coming years.
Ver has been optimistic about Bitcoin Cash and has been pointing out that its blockchain could really be the main tool for online payments.
There are various thoughts on the price prediction of Bitcoin Cash. Ver, for example, believes that the Bitcoin Cash Price will double and will reach $500 by November 2021.
Furthermore, Digitalcoin is even more optimistic, predicting that Bitcoin Cash price will end 2021 at $851.05.
Bitcoin Cash price prediction for 2021. Source: Digitalcoin
According to these predictions which are really optimistic, it is safe to say that Bitcoin Cash is a good investment option for investors in 2021.
If you want to get informed in detail about Bitcoin Cash price prediction, take a look at this detailed price prediction forecast for Bitcoin Cash.
Bitcoin Cash Price Beyond 2021
Bitcoin Cash, according to predictions, will act differently beyond 2021. Longforecast predicts that Bitcoin Cash will hit as high as $1,132 by the end of 2023, indicating an optimistic long-term Bitcoin Cash prediction.
But in the long run, Digitalcoin is more optimistic predicting the price of Bitcoin Cash to reach as high as $1,401.82 in December 2026.
Bitcoin Cash price could reach $1,401 by December 2026. Source: Digitalcoin
The bottom line: Is Bitcoin Cash a good investment option for investors?
Well, according to the predictions mentioned above, Bitcoin Cash will go through an upwards phase in 2021 to go downwards right after the same year. But then it will pick up reaching new heights by 2026. So, we can conclude that Bitcoin Cash is a good investment option for investors that have the patience to HODL.
Learn To Invest In Bitcoin Cash
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Bitcoin Cash Price - Key Points
- Bitcoin Cash was released in 2017, and it is a fork of Bitcoin.
- Bitcoin Cash is ranked as the 19th largest cryptocurrency.
- Three factors that drive the price of Bitcoin Cash are demand and institutional awareness, correlation to Bitcoin and the potential to become leading online payment tool.
- Bitcoin Cash launch price was $543, to go after five months to the highest record in its history of $ 3,556.
- Bitcoin Cash is a more competent blockchain than Bitcoin itself, and it has the potential to become the main blockchain for online payments.
- In the first quarter of 2019, Bitcoin Cash had experienced more than 200% growth within 6 months.
- Bitcoin Cash could end 2021 at $851.05 according to Digitalcoin.
- Longforecast predicts that Bitcoin Cash will hit as high as $1,132 by the end of 2023.
- Bitcoin Cash is a good investment option for investors that have the patience to HODL and gain returns by 2025-2026.
We hope that this article has made it clearer to you where Bitcoin Cash price would be oriented in terms of value. And lastly, if you have enjoyed reading this article share it, because there maybe someone else who can benefit from it.
Read More:
Pros and Cons of Investing in Bitcoin Cash
Is Bitcoin Cash a Good Investment?
Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk