Technical analysis article, focused on the other bitcoin halving after its "hard fork" in 2017, on bitcoin cash, by its Chief Investment Officer, Jesús Sánchez-Bermejo
BITCOIN CASH · El otro halving
Bitcoin Cash, often abbreviated to BCH as a symbol, emerged as a result of a controversial bitcoin hard fork in August 2017. This event marked a significant moment in the history of cryptocurrencies, leading to the creation of a new digital asset. with its own set of principles and objectives. Understanding the history of bitcoin cash requires delving into the context of its inception, the motivations behind its creation and its subsequent evolution in the cryptocurrency landscape.
Origins of Bitcoin Cash:
Bitcoin, the pioneering cryptocurrency, was conceived as a decentralized digital currency, with the aim of revolutionizing the traditional financial system. However, as bitcoin gained popularity, its network faced scalability issues. Bitcoin's limited block size (1 MB) meant that transaction speeds were slow and fees higher during periods of high demand.
To address these challenges, a debate emerged within the bitcoin community about what is the best approach to scaling the network. One proposed solution was to increase the block size to accommodate more transactions per block, thus improving scalability and reducing fees. However, another faction advocated maintaining the status quo or implementing off-chain solutions like the Lightning Network.
The hard fork:
Unable to reach a consensus, the bitcoin community experienced a controversial hard fork on August 1, 2017, which resulted in the creation of bitcoin cash. The key difference between bitcoin and bitcoin cash lies in their respective block sizes.
Bitcoin cash increased the block size to 8 MB, allowing for faster transactions and lower fees compared to bitcoin.
Proponents of bitcoin cash argued that larger blocks were necessary to scale the network and keep transaction fees low, thus preserving the original vision of bitcoin as a peer-to-peer electronic cash system. This divergence in philosophy led to the creation of two distinct cryptocurrencies, each with its own community, development teams, and vision for the future of the digital currency.
Adoption and challenges:
After its creation, bitcoin cash saw rapid adoption and integration by various cryptocurrency exchanges and wallets. Its larger block size and lower fees initially attracted users looking for an alternative to the congested bitcoin network. Additionally, some merchants/businesses and companies began accepting bitcoin cash as a form of payment, further consolidating their position in the cryptocurrency ecosystem.
However, bitcoin cash also encountered challenges and controversies along the way. Skeptics criticized his controversial bitcoin fork, labeling it an attempt to profit or undermine the original cryptocurrency. Additionally, concerns were raised regarding the centralization of bitcoin cash mining, as a few large mining pools controlled a significant portion of the network's hash rate.
Despite these obstacles, bitcoin cash continued to evolve and developers worked to improve its scalability, security, and usability. Various updates and protocol changes have been implemented to improve network functionality and address emerging challenges, such as the introduction of the Bitcoin Cash Network Upgrade Protocol (BCHNUP) and the Schnorr signature algorithm.
Technical Analysis for bitcoin cash:
Halving of the block reward (halving) estimated for April 3, 2024.
Chart for March 16, 2024
412 USD. Where does the price come from?
I note how the BCH price has launched in the last few months, in an uptrend, and has created a slightly ascending channel (marked with two parallel lines in blue). In the past, I also marked the bearish channel of its crypto winter and the bullish turn it produced.
Now?
Blue channel, with an upward trend, with great volatility.
Chart for April 2, 2024
The halving on April 3... is approaching, reducing your reward to 3,125 BCH.
Next important halvings:
Bitcoin, estimated April 20, 2024.
Litecoin, estimated June 26, 2024.
Verge, estimated June 29, 2024.
•This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell crypto assets. Do your own market research (DYOR) or contact your trusted financial advisor.