Bitcoin must be one of the most famous cryptocurrencies in the world. During the past couple of years there has been a lot of dispute in regard to this currency; it didn’t help that the values of bitcoin changed drastically during the past few years causing it to skyrocket followed by plummet and steady increase again.
Bitcoin cash has derived from bitcoin and became the most prosperous of all forks that were released. Not only that has been traded by it, but during the crisis two years ago it remained in the market. Last year, there was a recorded increase in the price of bitcoin cash and it wasn’t small. The question is will this rise in value stick in this year and how will the numbers change? In this article, we will evaluate predictions in their profitability.
How does bitcoin cash work?
As mentioned, bitcoin cash represents a fork of the original is derived from. The main purpose of making it was to ease the whole process of usage of cryptocurrencies; at first the idea was to use it as a scalable alternative for bitcoin. In order to make it a valid currency, there was an increase in the block size which resulted in increased speed of transactions. Once established, people started trading it which was a very good sign for the currency.
On the other hand, the value of this coin if somewhat connected to the market, and it shows the trend to follow the overall state of it; meaning that this coin is highly influenced by what is going on, on the cryptocurrency market. Don’t let it discourage you since this one proved its value and behaved somewhat stable. Even though the exchange rate now is way lower than it was at its highest peak at the end of 2017, the coin was and is active and people are using it in exchanges.
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How profitable is it?
There are a few different factors that can influence the profit you can gain from mining this cryptocurrency. Firstly, in order to successfully mine bitcoin cash, you will need good hardware. The acquirement of specific hardware that can do the job can be costly. Additionally, hardware uses electrical current, so there can be an increase in the electrical bill depending on the energy consumption and costs of electrical power in your county.
Some specific software can be used in bitcoin cash mining and this can also increase investment into the mining and change the overall profitability of it.
Your device’s hash rate will directly influence the profitability of finding blocks and getting a reward. More powerful devices will solve logical problems faster, increasing hash rate and income.
Technical obstacles can be fixed by updating your mining computer and making it more powerful. Other problems that need to be taken into consideration are the state of the market, conflict with Bitcoin SV and the human factor.
As stated, bitcoin cash is somewhat connected and influenced by the state of the market. In the past, it has shown the tendency to mimic the state of the market in the sense that it was unstable and had a tendency to plummet in value.
When it comes to other forks of bitcoin, the one that is in conflict with bitcoin cash is bitcoin SV, made just one year after the release of bitcoin cash. These conflicts for the market status are completely normal and expected but it can mess up the increase rate of both and influence on the further increase or decrease in value.
One of the biggest promoters of the bitcoin cash is Roger Ver; not only that he now promotes bitcoin cash, but he is one of the early investors in bitcoin. He is, by bitcoin miners, perceived as some sort of a God and he has a tendency to increase the value of specific bitcoin forks due to that.
Predictions of the price in the following year
When it comes to predictions in the price that bitcoin cash will have during 2023, we can with certainty state that all predictions need to be taken with reserve. This is due to the age of the market itself and the currency as well, so there is not much data that can be used to compare. The more data you have, the better and more accurate are the predictions.
This does not stop different investors and trades to give their own take on the rise or fall of specific cryptocurrencies. When it comes to bitcoin cash it was discussed on specific numbers and also the percentage of increase.
Since bitcoin cash is connected to the bitcoin itself meaning that any changes in bitcoin value will have an effect on the bitcoin cash. The overall increase is being predicted for both the following year. Even though the first halving of bitcoin cash will be in August this year, it is believed that it will not affect the price greatly and that we will see a steady increase in value during this year.
Bear in mind that there is a finite number of bitcoin cash that can be created and this number is twenty-one million. As time goes by, the time needed for a specific number of coins to be mined decreases by half.
Some other prediction is that bitcoin cash has a tendency to reach the price of a thousand dollars in the following couple of years.
Cryptocurrencies are a very hot topic these days and more and more people decide to take their part in this business. Bitcoin is the most famous currency in the internet world and it has in the past few years yielded few forks; the most famous fork is bitcoin cash which is easy to use.
It seems like mining bitcoin cash is easier and more profitable since finding blocks if more frequent. Bitcoin cash depends on hardware and software used to mine it, but also on the market state. This led to some predictions about the growth of this currency in the future. The estimate is that there will be steady growth of this currency in the next few years and that the value can reach up to one thousand dollars.