By
Tolu Ajiboye
April 23rd, 2024
Now several exchanges use Bitcoin Cash as a key currency, but if their number increases in the future, it may have a positive impact on Bitcoin Cash price.
Bitcoin Cash is a cryptocurrency created in 2017 by the split of Bitcoin. In response to the Bitcoin scalability problem of system and network extensibility/flexibility for transaction data processing, the size of the Bitcoin block is expanded from 1MB to 8MB, Big Block has improved processing capacity and tried to solve it with Bitcoin Cash.
Bitcoin Cash was born by a hard fork that does not maintain system compatibility with Bitcoin. However, since it was derived from Bitcoin, the issuance limit of Bitcoin Cash is about 21 million pieces, and the basic specifications other than Big Blog are almost the same as Bitcoin.
Also, due to conflicts within the developer community, Bitcoin Cash made a further hard fork in 2018 and split into two, Bitcoin Cash ABC and Bitcoin SV.
Bitcoin Cash can be purchased at domestic or overseas exchanges. CoinDesk foreign countries recommend buying at a domestic virtual currency exchange approved by the Financial Services Agency.
It is expected the price of BCH may increase which will lead to the improvement of the coin’s positions in the crypto industry.
Spread of Bitcoin Cash Payment
The first factor is the spread of Bitcoin Cash payments. With the spread of payments using Bitcoin Cash, the demand for Bitcoin Cash will increase, which may be one of the factors behind price growth.
Arrival of Half-Life
The second factor is the arrival of half-life. The half-life of Bitcoin happened in May but it is still has chances to influence the market, and there is a possibility that the price of Bitcoin Cash will fluctuate due to the impact. By the way, some market observers said the last two half-lives of Bitcoin in the past contributed to the significant rise in the price of Bitcoin, according to the other country State Bank. You predict that this year half-life could push Bitcoin prices up to $90,000.
Regulatory Movements around the World
The third issue is the tightening of regulations around the world. As far as records are seen, if there are moves to tighten regulations on virtual currencies in other countries, the United States, etc., there are cases in which the price of Bitcoin Cash will fall in line with it. On the other hand, if there is news of deregulation, etc. Bitcoin Cash prices may rise as virtual currency prices rise.
Increase in Exchanges with Bitcoin Cash as the Key Currency
The fourth factor is the increase in exchanges that use Bitcoin Cash as a critical currency. At present, several exchanges use Bitcoin Cash as a key currency, but if the number increases in the future, it may have a positive impact on Bitcoin Cash price.
Bitcoin Used for Dark Transactions
If we speak about BTC or cryptocurrencies that are related to it, we need to understand that there are different sides of the situation. Bitcoin has positive aspects such as quick international money transfer, secure mobile payment, and high security by cryptographic technology. Still, it also has the aspect of being used for money laundering and dark transactions. The reason why Bitcoin was used for dark transactions was that it allows anonymous transactions without revealing personal information to anyone. However, there are not only illegal ways to get and use crypto. For example, allin1bitcoins is believed to be the best app for trading Bitcoin.
Global Regulatory Efforts
Currently, regulatory authorities are making regulations to prevent virtual currencies such as Bitcoin from being used for black transactions, money laundering and terrorist financing.
Since Bitcoin has a block size of 1MB and is decided to generate blocks once every 10 minutes, there is a chronic scalability problem that delays transaction processing speed. To solve this problem, it was necessary to expand the block size or develop a function to solve the scalability problem without expanding the block size. Since Bitcoin is a non-centralized community with no manager, various factions are created due to disagreements, and eventually, the currency itself diverges hard fork.