Bitcoin Cash’s hard fork, scheduled for this year, will bring additional security and privacy to the network, with cash tokens enabling the execution of decentralized applications (Dapps).
The price of Bitcoin Cash (BCH), the first offshoot of the Bitcoin blockchain, has surged by more than 10% over the past 24 hours. At the time of writing, BCH is priced at $120 and has a market cap of $2.37 billion.
BCH’s latest rise coincides with a broader pump in the altcoin space this week. As a result, Bitcoin Cash (BCH) price is up more than 20% on the weekly chart. Bitcoin Cash broke above the $108 resistance level today. This will push the altcoin to move further to the next resistance level of $150.
The euphoria surrounding the Bitcoin Cash hard fork
Some market traders believe that today’s Bitcoin Cash (BCH) rally could lead to potential network changes as Bitcoin Cash’s hard fork upgrades scheduled for May 2023 this year. It is believed that euphoria sets in due to high .
In November 2022, Bitcoin Cash developer Jason Dreyzehner updated that the hard fork could introduce significant privacy and security changes to the network.
Additionally, the developer plans to introduce CashTokens that will allow decentralized applications (Daaps) to run on the Bitcoin Cash blockchain. Currently, Bitcoin Cash contracts do not have primitives for issuing messages that can be verified by other contracts.
Other proposed improvements with the Bitcoin Cash hard fork include smaller transaction sizes. This helps significantly speed up transaction times and smart contract functionality. This enables the building of Bitcoin Cash-based applications for recurring payments, crowdfunding opportunities, derivative trading, among other uses for Bitcoin Cash users.
Bitcoin Cash (BCH) Price Rise
Like other altcoins, Bitcoin Cash underwent a major price correction last year in 2022, with its price dropping by almost a third on the annual charts. Andrew Kang, founder of Mechanism Capital, writes that the fundamental improvement coupled with the BCH price trough will set a runway for the BCH price to skyrocket in the coming weeks. “Charts are bottoming out insanely and look ready for an impulse,” Kang tweeted.
– The chart is bottoming out insanely and looks ready for an impulse
– Most BCH whales (Ver, Jihan) surrender or dormant
– Biggest network upgrade/hard fork in years in May 2023 (more efficient smart contracts, L2 features) https://t.co/sqb2gtE1tS pic.twitter.com/ESaslrDfHv
— Andrew Kang (@Rewkang) January 12, 2023
In addition to Bitcoin Cash, another altcoin, Litecoin (LTC), is set to hard fork this year.
Bhushan is a FinTech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance focus on the emerging blockchain technology and cryptocurrency market. He is in a continuous learning process and keeps himself motivated by sharing what he has learned. In his free time, he reads thriller novels and sometimes develops his cooking skills.