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Bitcoin Cash [BCH] Rips Higher, bulls Likely to Break $500
BTC
1.29%
BCH
2.62%
7d agoCoinGape
bullish:
0
bearish:
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bull

Bitcoin cash (BCH) is galloping higher. At the time of  press, the coin was $10 shy from the $500 mark.

Notably, BCH bulls had reversed losses from November 2018 hash rate war whose aftermath saw prices drop 50%, subsequently cratering in following sessions to around $100 before bouncing back strongly in the first half of 2019.

Bitcoin Cash Bulls on the Driving Seat

Amid this resurgence, Bitcoin Cash buyers are in the driving seat. The coin is outperforming stalwarts, leading the market as the crypto environment remains upbeat in expectations of better prices.

Specifically, Bitcoin Cash is up 9% in the past trading week but has more than doubled in 2020 against the greenback.

Bitcoin Cash BCH Market Performance
Bitcoin Cash BCH Market Performance

This year alone, the coin us up 248% against the USD, reclaiming its spot at fourth. Also, BCH has somehow outperformed ETH, which is throbbing at spot prices.

Bitcoin Cash Weekly Chart for Feb 14
Bitcoin Cash Weekly Chart for Feb 14

Halving Expectations

As a Bitcoin spinoff, the coin uses a Proof-of-Work consensus algorithm, and every 4 years, the network halves its block reward to keep its emission steady.

Like Bitcoin, BCH will halve. However, this event will precede Bitcoin’s. Because of the emission shock expected once halving is done, and assuming a constant demand, it is likely that BCH will be repriced higher.

For this, this rally front runs and traders are jumping in the bandwagon, as their ROI post greens.

Bitcoin Cash shaking off Mining Tax Division

Incredibly, the furor around introducing a 12.5% mining tax seems not to affect BCH prices.

Roger Ver, the eccentric leader and a former Bitcoin evangelist who is now the face of Bitcoin Cash, is casting doubt on the details around the BCH tax plan.

The aim of this controversial plan is to fund Bitcoin Cash Development.

However, the sticky argument is the slush fund which may end up collecting over $6 million passively could end up funding unaccounted developers.

Through a Reddit post, he expresses his worries:

“I’m worried this could easily turn into a slush-fund boondoggle for developers, a universal basic income for them that gives them more leeway to turn Bitcoin Cash into a science project instead of the tight leash and a collar with clear success metrics it should be.”

Bitcoin Cash halving is in less than two months.

Nonetheless, the value of BCH will depend on its utility and demand. When Litecoin halved in 2019, prices fell.

7d agoCoinGape
bullish:
0
bearish:
0