Bitcoin cash (BCH) is galloping higher. At the time of press, the coin was $10 shy from the $500 mark.
Notably, BCH bulls had reversed losses from November 2018 hash rate war whose aftermath saw prices drop 50%, subsequently cratering in following sessions to around $100 before bouncing back strongly in the first half of 2019.
Bitcoin Cash Bulls on the Driving Seat
Amid this resurgence, Bitcoin Cash buyers are in the driving seat. The coin is outperforming stalwarts, leading the market as the crypto environment remains upbeat in expectations of better prices.
Specifically, Bitcoin Cash is up 9% in the past trading week but has more than doubled in 2020 against the greenback.
This year alone, the coin us up 248% against the USD, reclaiming its spot at fourth. Also, BCH has somehow outperformed ETH, which is throbbing at spot prices.
As a Bitcoin spinoff, the coin uses a Proof-of-Work consensus algorithm, and every 4 years, the network halves its block reward to keep its emission steady.
Bitcoin Cash halving in 8 weeks. Block 63000 will halve the number of new #BCH minted with each block mined.
— Bitcoin Cash (@BitcoinCash) February 12, 2020
Like Bitcoin, BCH will halve. However, this event will precede Bitcoin’s. Because of the emission shock expected once halving is done, and assuming a constant demand, it is likely that BCH will be repriced higher.
For this, this rally front runs and traders are jumping in the bandwagon, as their ROI post greens.
Bitcoin Cash shaking off Mining Tax Division
Incredibly, the furor around introducing a 12.5% mining tax seems not to affect BCH prices.
Roger Ver, the eccentric leader and a former Bitcoin evangelist who is now the face of Bitcoin Cash, is casting doubt on the details around the BCH tax plan.
The aim of this controversial plan is to fund Bitcoin Cash Development.
However, the sticky argument is the slush fund which may end up collecting over $6 million passively could end up funding unaccounted developers.
Roger Ver: Taxation is theft.
Also Roger Ver: We will tax 12.5% of your mining rewards or ruin your business.
— grubles (@notgrubles) January 22, 2020
Through a Reddit post, he expresses his worries:
“I’m worried this could easily turn into a slush-fund boondoggle for developers, a universal basic income for them that gives them more leeway to turn Bitcoin Cash into a science project instead of the tight leash and a collar with clear success metrics it should be.”
Bitcoin Cash halving is in less than two months.
Nonetheless, the value of BCH will depend on its utility and demand. When Litecoin halved in 2019, prices fell.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich