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Bitcoin Cash price jumps 68%: Looming hard fork to boost BCH user base?

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Smartphone with Bitcoin Cash growth chart on-screen among piles of golden Bitcoin Cash coins. BCC/BCH growth concept. 3D rendering

Bitcoin Cash (BCH) is up over 36% in the past 24 hours. In turn, the weekly growth was 68%. Thus, on Thursday, Bitcoin Cash (BCH) entered the top ten of the market cap rankings again. At the time of this writing, Bitcoin Cash ranks ninth in the digital asset ranking.

BCH’s strong growth started this year along with the rest of the market. At the end of last year, the number of daily transactions was 20,000, while today this number has exceeded 150,000.

Rebirth to the hard fork

Bitcoin Cash has a lot to catch up with Bitcoin in terms of the size of its network. Peaking at nearly $ 4,000 in 2018, it then dropped significantly and dropped to around $ 300-400 over the next few years. A big jump in recent weeks has seen the price rise again to over $ 1,400.

The rebirth to the two-year Bitcoin Cash hard fork on May 15 will bring two small but important network changes:

– The limitation of the chain of unconfirmed transactions in Bitcoin Cash has been removed, this allows you to broadcast more microtransactions without waiting for a block confirmation (in Bitcoin Cash, blocks are mined every 10 minutes, and the old chain limit was set at 50 transactions);

– Another important change: implementation of multiple “OP RETURN” outputs. Simply put, the Bitcoin Cash blockchain will allow various data such as text, images and other forms of data to be included in a transaction. At the moment, a transaction can have only one output “OP RETURN” – one image, text.

How does the Bitcoin Cash hard fork relate to changes in the value of digital coins?

When a network for cryptocurrencies is forked, a small fraction of the value that was on the network tends to split into a forked chain. For example, when Bitcoin Cash originated from the Bitcoin network, the price of BTC changed from $ 2,800 to $ 2,700 in July 2017.

This means that an individual’s assets may drop in value, but because of the fork, the person makes a profit when it comes to the fact that they now have a corresponding amount of another currency (in this case, Bitcoin Cash). Despite the loss of the primary coin, the value of the secondary coin compensates for this, so that the user will actually receive some profit overall.

Ultimately, hard forks can solve the problems of the original coins and even develop the coins in a way that makes them more attractive to investors. Differences in the forked code can be extremely useful and innovative for them. In addition, they allow a given token to be developed in such a way as to maximize profits. In the sense that the fork will cost more than just the initial value of the token.

Conclusion

The coming days and weeks may turn out to be quite interesting. Although it is still difficult to say which direction Bitcoin Cash will turn.

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