The last few days have been full of surprises in the cryptocurrency world. Although bitcoin has managed to hit a new all-time high, thanks to the IPO of Coinbase, the leading cryptocurrency exchange in the US. The real stars of the market have been altcoins, including Dogecoin, Ethereum Classic and, of course, Bitcoin Cash. So today we explain what's behind the rise in the price of BCH.
The altcoin season
For the past few months, leading cryptocurrency market investors such as Scott Melker have been declaring the end of the bitcoin season and the start of the altcoin season. This doesn't mean that bitcoin will stop growing, but it does mean that in the short to medium term, the highest returns can be achieved with altcoins such as Bitcoin Cash or Binance Coin.
This has been clear since the rush to decentralised finance (DeFi) last year. In just a few months, considerable fortunes were made thanks to DeFi projects on the Ethereum blockchain. And this was confirmed by Coinbase's IPO, which, by generating expectations of greater ease of buying and selling cryptocurrencies, encouraged the purchase of altcoins, and thus the massive increase in the price of cryptocurrencies such as Dogecoin.
Thanks to this, and although none of these alternative virtual currencies can compare with bitcoin, either in terms of price or popularity. Projects such as Ethereum and Bitcoin Cash are becoming increasingly well known. They are acquiring their own value for investors beyond their relationship with bitcoin. As a result, we are seeing substantial increases in the value of coins such as BCH, which has risen in recent days from $726 on 13 April to $958 today.
The rise of Bitcoin Cash
So, overnight, a project that long seemed doomed to failure has managed to make headlines within the crypto community. A process that has been in the making since the start of the year, even if the major effects on its price are only just beginning to be felt. This is linked to an increase in interest in BCH among investors.
This is due to the facilities offered by the Bitcoin Cash blockchain as an alternative to bitcoin. Whereas the BTC network faces serious scalability problems, which prevent it from being able to carry out transactions immediately. The Bitcoin Cash blockchain has been designed precisely to be able to process hundreds of transactions per second, calling itself virtual money, while Bitcoin is virtual gold.
