Evaluation of Bitcoin Cash Performance (BCH) On A Volatile Market
The world of cryptocurrencies has undergone significant volatility in the last year, many major cryptocurrencies seeing their prices fluctuates wildly. In this article, we will evaluate the performance of bitcoin cash (bch), a popular altcoin and hard fork in the original bitcoin chain.
What is Bitcoin Cash (BCH)?
Bitcoin Cash was created in 2017 by a Person or Group of People who Wanted to Increase The Size Limit of the Bitcoin Network. The Purpose was to facilitation the Miners to Secure the Network and Reduce the Transaction Taxes. BCH was launched on August 1, 2017 and obtained a significant traction as a competitor in Bitcoin.
How’s The Bitcoin Money Work?
Bitcoin Cash is based on the same blockchain as bitcoin technology, but with some key differentences:
* Block Size : BCH Blocks are larger than Bitcoin Blocks, which Allows Faster Transaction Processing.
* Transaction fees : BCH Transaction Fees are Lower than Bitcoin, which makes it easy to send Large Amounts of Money.
* Mining : The Mining Process is Similar to Bitcoin, But the Block Reward Has Been Increased to 10000 New Bitcoins on the Block.
Bitcoin Cash Performance (BCH) On A Volatile Market
Despite its wide popularity and adoption, BCH HAS Undergone Significant Volatility in the Last Year. Here are some key performance values:
* Price : The Price Bch Fluctuated Wildly, With A Daily Average Change of About 10-20%.
* Investment Yield : In The Last 12 months, the price bch has returned on average -60% (ie, investors have lost 1 dollar for each dollar they have invested).
* Volatility index : Volatility index, which Measures Market Volatility, has increased significantly in the last year. In April 2020, The BCI Volatility Index Reached A Maximum Level of 500%, which makes it one of the most volatile cryptocurrency in history.
The key volatility drivers bch
A FEW Factors Contribute to Volatility BCH:
* Regulatory Uncertainty : The Regulatory Environment for Cryptocurrencies is Still Unclear and Uncertain, which leads to price fluctuation.
* Sent of Market : The Investor’s Feeling Can Change Rapidly, Influenced by News and Ads About the Cryptocurrency Market.
* Network CONSTION : High congestion of the Network Can Increase Transaction Taxes, which can Continue to Reduce Prices.
Comparison or BCH Performance with Other Cryptocurrencies
BCH HAS Undergone Significant Volatility Compared to Other Cryptocurrencies. For Example:
* Dogecoin (doge) : Despite its relatively stable price of about $ 0.10, doge lost about 90% of its value in the last year.
* Litecoin (LTC) : The Liteco Price Fluctuated between 100 and 200 USD on the currency, which makes it one of the most cryptocurrency volatile.
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Conclusion
In Conclusion, Bitcoin Cash (BCH) is a high -risk cryptocurrency, which has undergone significant volatility in the last year. AltheHeT can be Attractive to Investors Who Are Looking For A Stable And Potentialy Profitable Investment Opportunity, its Price Fluctuation Make It Essential for Investors to Approach Caution.
To Mitigate Risk, Investors Should:
* DIVERSIFY Their Portfolio : Spread Investments in Multiple Cryptocurrencies to Minimize Exposure to Any Asset.
* SET Clear Goals
: Define the Specific Investment Goals and Adjust the Portfolios Accordingly.
* Remain informed : Continuously monitor market trends and news to make knowledge in knowledge.
Disclaimer
This article is only for information purposes and should not be consulted as investment tips.