Evaluation of Bitcoin Cash (BCH) performance in a volatile market
The world of cryptocurrency has undergone significant volatility in the last year, with many great cryptocurrencies that see their prices floating wildly. In this article, we will evaluate the performance of Bitcoin Cash (BCH), a popular Altcoin and a hard fork of the original Bitcoin chain.
What is Bitcoin Cash (BCH)?
Bitcoin Cash was created in 2017 by an individual or a group of people who wanted to increase the limitation of the Bitcoin network block size. The goal was to make it easier for miners to protect the network and reduce transaction commissions. Bch was launched on August 1, 2017 and obtained a significant traction as a Bitcoin competitor.
How does Bitcoin Cash work?
Bitcoin Cash is based on the same Bitcoin blockchain technology, but with some key differences:
* Block size : BCH blocks are larger than Bitcoin blocks, which allows faster transactions processing.
* Transaction commissions : the BCH transaction commissions are lower than those of Bitcoin, making it easier to send large quantities of money.
* Mining : The mining process is similar to Bitcoin, but the block reward has been increased to 10,000 new bitcoins per block.
Bitcoin Cash (BCH) performance in a volatile market
Despite its popularity and wide adoption, BCH has undergone significant volatility in the last year. Here are some metrics of the key performance:
* Price
: the price of BCH has oscillated wildly, with an average daily variation of about 10-20%.
* Return to investments : in the last 12 months, the BCH price has returned an average of -60% (i.e. investors have lost $ 1 for each dollar invested).
* Volatility index : the volatility index, which measures market volatility, has increased significantly over the last year. In April 2020, the BCI volatility index reached a maximum of 500%, making it one of the most volatile cryptocurrencies in history.
Key driver of BCH’s volatility
Several factors contribute to the volatility of BCH:
* Regulatory uncertainty : The regulatory environment for cryptocurrencies is not yet clear and uncertain, leading to price fluctuations.
* Mercato feeling
: the feeling of investors can move rapidly, influenced by news and announcements on the cryptocurrency market.
* Network congestion : the congestion of the high network can lead to an increase in transaction commissions, which can further reduce prices.
Comparison of BCH performance with other cryptocurrencies
Bch has experienced significant volatility compared to other cryptocurrencies. For example:
* Dogecoin (Doge) : Despite its relatively stable price of about $ 0.10, Doge has lost over 90% of its value in the last year.
* Litecoin (LTC) : the Litecoin price oscillated between $ 100 and $ 200 per coin, making it one of the most volatile cryptocurrencies.
* Monero (XMR) : Monero’s price has undergone significant volatility, with an average daily variation of about 5-10%.
Conclusion
In conclusion, Bitcoin Cash (BCH) is a high -risk and high recharge cryptocurrency that has undergone significant volatility in the last year. Although it can be attractive for investors looking for a stable and potentially profitable investment opportunity, its price fluctuations make it essential for investors approaching caution.
To mitigate the risk, investors should:
* diversifies their portfolio : spread investments in several cryptocurrencies to minimize exposure to any particular activity.
* Set up clear objectives : Define specific investment objectives and adapt the wallets accordingly.
* Stay informed : constantly monitor the trends and news of the market to make informed investment decisions.
Disclaimer
This article is only for information purposes and should not be considered as investment advice.
