Bitcoin Cash (BCH) seems to be breaking away from the cryptocurrency pack to hit the 3K mark in the coming months. This comes at the backdrop of other top 10 currencies to get their footing back on track. BCH is the fourth largest cryptocurrency in market capitalization and is trading at $1,552.96 (1.14%) at the time of writing.
The above is in total contrast with BCH performance in the last seven days where it rose to a high of $2,961. The dip is attributed to the South Korea intent to ban trading in cryptocurrencies. Korea is one of the biggest crypto markets with BCH being among the favorite.
What is Bitcoin Cash (BCH)?
Bitcoin Cash forked from Bitcoin core in August 1st 2017. This is a better version of the original Bitcoin (BTC). The upgrade in software meant better features and more benefits for the end user. The upgrade occurred in block size meaning faster transaction speeds. Miners can process more transactions per second as compared to the original slow transaction platform.
The Bitcoin Core (BTC) system congestion means slowing down transactions which make the processing fee out of reach for the ordinary user. When block size is limited, transaction take hours or even days to go through. This resulted in forking of Bitcoin Cash and turning BTC in to a store of value.
The South Korea- Bitcoin Cash (BCH) Connection
There is a correlation between BCH and the South Korea market’ any shift in the legislation affects the overall trade volumes. The Korean market seems to have confidence in the cryptocurrency markets despite the impending ban on digital currency trading ban.
The local media seems to play major role in in the domestic market. According to Bithumb exchange, an average of $250 million has exchanged hands in the last 24 hours (February 19th). The beauty of the Korean market is usage of smartphones and tablets and internet and electricity penetration are one of the best in the world; trading to them can always be on the go.
The Driving Force behind Bitcoin Cash
By adopting the “Bitcoin” brand name, Bitcoin Cash acquired an upper hand in the market. Their selling point was an improved Bitcoin; true to their word, they have improved transaction speeds with minimal fees. The ecosystem is highly scalable bring in to fore the question why BTC has dominated the market for such a long time.
As much as Bitcoin Cash (BCH) inherited a similar infrastructure as BTC, it has taken a different route compared to other popular Altcoins like Ripple (XRP) and Litecoin. The BCH protocol has improved features that are ore focused on the user.
With cryptocurrencies, predicting their future takes a lot of guess work if the recent crash is anything to go by. Many investors are still stuck in Bitcoin (BTC), the store of value and do not trust Bitcoin Cash since they see it as a medium of exchange.
However, when you look at digital currency from a broad perspective, you will realize that choosing a store of value or a transactional coin adds up to similar goals. If there are no complementary coins, Market dominance by a segment of investors results in more whiles than minnows which are not practical in the long run.
The current turbulence in the cryptocurrency market and in particular Bitcoin is not something ending soon. However, if you opt to use Bitcoin Cash (BTC) as an investment, there is a lot of competition compared to using the platform as a currency transaction processor. If you need to invest Bitcoin cash (BCH) has a better risk proposition compared to other coins in the market.