Is It Too Late To Buy Bitcoin Cash?
Bitcoin Cash is the most popular hard fork of Bitcoin. The coin currently ranks as the fourteenth largest cryptocurrency in terms of market capitalization. BCH's tremendous achievements and gains in recent months and years have many investors thinking about whether it is too late to invest in the altcoin.
Nevertheless, despite these gains, it is still not too late to invest in Bitcoin Cash for the following reasons.
Bullish Sentiment Across The Broader Market
The broader cryptocurrency market has been witnessing tremendous price gains over the past month. Bitcoin Cash has been reacting to this bullish sentiment, and it has been rallying towards higher levels.
Bitcoin Cash is currently trading at $644, according to data from Coingecko. Over the past month, the altcoin's value has grown by around 17% because of the market support garnered from the broader cryptocurrency market. This overall bullish sentiment is still at play because Bitcoin is still fighting to go to higher levels. If BTC manages to break past $50K, we could see BCH rallying in response.
According to analysts, the current bullish rally has not left out investors because the prices of cryptocurrencies are still recovering from the May market crash. In this case, more gains are to be expected in the coming months when the cryptocurrency market will achieve a strong bullish rally. Once such a rally is realized, we could see BCH create new highs.
Before the crypto market crashed in May, BCH was trading at around $1500. If a strong bullish rally commences, such as the one experienced during this period, we could see BCH reach new highs, where prices will increase by an even higher margin, given that crypto adoption has boomed and more people are venturing into the crypto sector.
The full potential of BCH was realized during the 2017 bullish rally. BCH managed to climb to new highs of around $4000 before the prices corrected. While the coin has not achieved this high again, if there is a massive bull run and buying pressure from traders increases, we could see such highs being achieved again.
Adoption Is Growing
Bitcoin Cash is one of the popular cryptocurrencies in the crypto space. For this reason, it has gained major adoption from different institutions that use it to meet evolving customer needs. The main purpose behind the launch of BCH is to develop a cryptocurrency that will be digital cash by being cheap and easily transferrable. BCH easily achieves this.
One of the main uses of cryptocurrencies is that they can be an alternative to fiat currencies in being used for payments. Payment giant firms such as PayPal have included Bitcoin Cash as one of the supported cryptocurrencies that customers can use to purchase goods and services from merchants around the globe. This adoption has a positive effect on the values of BCH.
The potential of the crypto market is only just now being discovered. The use of cryptocurrencies as a means of payment is currently picking up, which means that cryptocurrencies such as Bitcoin Cash that have positioned themselves in being used for this purpose have a positive future. Cryptocurrencies are also better alternatives for online and cross-border payments. With the world shifting towards a digital economy, we could see increased popularity in Bitcoin Cash's prices in the future.
Check Out: Pros and Cons of Investing in Bitcoin Cash
The main objective of Bitcoin Cash is to develop a network that will promote cheap and fast transactions. The coin has major advantages over other digital coins because of its superior and scalable features.
To begin with, transaction fees on the Bitcoin Cash network are very low. The developers made this possible to boost the use of the cryptocurrency for payments. Most decentralized financial platforms deal with a major problem of high transaction fees, but Bitcoin Cash dealt with this early on to ensure users are attracted to the network.
Bitcoin Cash also offers a network that is relatively stable, quick, and secure. Its robust infrastructure makes it better compared to most of the other cryptocurrencies. The main focus of Bitcoin Cash is to improve on the scalability issues faced by Bitcoin. By offering high speeds and low fees, the network has been able to achieve this. Bitcoin is yet to undergo any major developments that will make it a more scalable platform, and this is one of Bitcoin Cash's major selling points.
The Crypto Market Is Still Young
Blockchain is among the newest technologies in the market. While the sector has only been around for several years, it has accomplished a lot in that short period. It has gained major endorsements that have made it a formidable competitor of fiat currencies and traditional financial institutions.
There is much potential in this sector, which means that in the coming years, we will witness a massive rally that will propel prices towards higher levels. During the first quarter of 2021, the crypto market saw major adoptions from payment firms and leading financial institutions, which led to a massive price rally. Most cryptocurrencies set new all-time highs. While this rally was disrupted after the mining crackdown in China, cryptocurrencies have since recovered, and we could see a similar rally being set in the future.
Furthermore, crypto regulations have changed, and we have seen more laws being formulated about this sector. Hence, if a more solid regulatory framework governs cryptocurrencies, we could see more investors venturing into this sector, which could lead to massive price gains because it will increase the demand for cryptocurrencies.
A straightforward regulatory framework will also attract more institutional investors into this sector, which will have a major positive effect on prices. Cryptocurrencies will evolve from being used for speculation and become a major asset class such as stocks. Those who invested early will hence reap major returns.
With all these factors showing that it is still an opportune time to invest in Bitcoin Cash, it is best practice for investors to conduct their investigations before venturing into this sector. Doing your research will ensure that you have all the details you need before investing.
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