Bitcoin Cash (BCH), a fork of Bitcoin (BTC) that aims to offer faster and cheaper transactions, has seen a remarkable increase in price and market capitalization in the past day.
According to CoinMarketCap, BCH has gained 21% in the last 24 hours, reaching a high of $128.82 at the time of writing. The coin also surpassed Binance Coin (BNB) and Cardano (ADA) to become the fourth-largest cryptocurrency by market cap, with over $23 billion.
What is behind this impressive rally? Some analysts attribute it to the growing adoption of BCH as a payment method by merchants and users worldwide. According to Bitcoin.com, there are over 100,000 merchants that accept BCH as a form of payment, including major platforms like Microsoft, Expedia, and CheapAir. Moreover, BCH has a loyal and active community that supports its development and innovation. For instance, BCH recently implemented a new upgrade that increased its block size limit from 32 MB to 64 MB, allowing more transactions to be processed per second.
Another possible factor that boosted BCH’s price is the anticipation of a hard fork scheduled on November 15, 2023. A hard fork is a change in the protocol rules that creates a new version of the blockchain incompatible with the old one. This means that users and miners must choose which version they want to follow. In the case of BCH, there are two competing proposals for the upcoming hard fork: Bitcoin ABC and Bitcoin SV. Bitcoin ABC is the current dominant implementation of BCH, while Bitcoin SV is a new version that aims to restore the original vision of Satoshi Nakamoto, the anonymous creator of Bitcoin.
The hard fork could result in a split of the BCH network into two separate coins, each with its own price and market cap. This creates an opportunity for investors and traders to speculate on the outcome of the fork and profit from the price movements. However, it also entails a lot of uncertainty and risk, as there is no guarantee that either version will survive or gain more support than the other.
In conclusion, BCH has shown a remarkable performance in the past day, surging 21% in value and becoming the fourth-largest cryptocurrency by market cap. The coin benefits from its fast and cheap transactions, wide adoption by merchants and users, and active community. However, it also faces some challenges ahead, such as the upcoming hard fork that could split its network into two rival coins. Therefore, investors and traders should be cautious and research before investing in BCH or any other cryptocurrency.