Why Did BCH Surge in November (Will BCHC Continue to Rise)?

Why did BCH surge in November? Recently, BCH has been a hot topic in the cryptocurrency community. With the continuous rise in Bitcoin’s price and the increase in market demand, more and more investors are flocking to this emerging field, attracting more people to enter the industry.

According to official data released by BCH, its price has skyrocketed from $10 to nearly $40 since November, with the current price being around $15. However, due to the large fluctuations in the market and high trading volume, the recent price trend has been very unusual.

Furthermore, there is another piece of news worth noting: according to the official website of BCH, as of the end of January 2018, the total issuance of BCH has reached 500 million (including lock-up), with a circulating market value of 800 million RMB.

It is reported that in the first seven months of 2019, the Bitcoin community has been discussing Bitcoin Cash (BCC). Core Bitcoin developers believe that the value of blockchain technology lies in its ability to integrate decentralized systems into any software or service. This technology can improve people’s demand for the internet by changing the performance of existing internet applications. On the other hand, it allows users to use cryptocurrency payment platforms and services more conveniently and securely by reducing costs, achieving faster and more advanced operations, and reducing points of failure.

So, why did Bitcoin Cash experience such a large increase recently? Bitcoin miners are frantically mining new vaccines. Steven Zheng, the chief scientist of the Bitcoin Foundation, said, “Bitcoin has the potential to become one of the foundational layers of the World Bank, benefiting everyone in the world.”

The main purpose of Bitcoin is to store resources. The core of Bitcoin is a computer-coded virtual machine that allows individuals and organizations to manage their own cloud accounts and run nodes. This research also found that many large companies in the world are working to create distributed ledgers to meet the growing needs of their customer base. However, without sufficient technology to support large-scale data processing capabilities and scalability, sending “massive data” to third-party servers for centralized processing can affect the reputation of the entire digital asset market. “We need new infrastructure, such as artificial intelligence and machine learning, because this will create strong economic incentives. But there are many problems in the market right now, such as a lack of reliable information transmission protocols and inefficient network costs.”

In addition to Bitcoin, “Bitcoin Gold” is another good example. Since 2017, Bitcoin has been favored by central banks and government agencies around the world. At the end of 2017, the People’s Bank of China officially announced the “Notice on Preventing Risks of Token Issuance Financing,” which stated that ICO projects do not have securities properties and do not provide exchange services between legal currency and virtual currency. In early 2018, shortly after the successful listing of the first company publicly selling virtual currency futures in China, the price of Bitcoin quickly fell to over 3,000 US dollars.

Will BCHC Continue to Rise?

Today is the 19th week of BCH, and also the day with its highest price. According to CoinMarketCap data as of the time of writing (December 4, 2019), Bitcoin Cash is currently priced at $7,470.

From the historical performance of BTC, it has been in a downward trend since early November last year, and as of the time of writing, it has fallen to a six-month low of around $7,450. In the past few days, BCHC has started to rise again after continuous discounts and speculation. So, will it continue to rise? Let’s look at the relationship between these three indicators: Bitcoin Cash ABC, BTC, and BSV, as well as their respective market share situations.

Note: According to Binance’s market, BCH is currently priced at 74.55 yuan/coin, with a 24-hour increase of 16.4%, ranking third in the cryptocurrency market!

Another piece of news worth paying attention to is that the BCH development team is considering partnering with the U.S. Securities and Exchange Commission (SEC) to launch a new token called “Bitcoin SV,” but the specific amount is not yet known. Previously, Bitcoin SV announced the issuance of one million new tokens to incentivize community members to participate in network governance, but it was subsequently accused by U.S. regulatory agencies of fraudulent behavior.

In addition, two exchanges have also stated that they have received feedback from this project:

1. Although BCH supporters believe that this new token may not generate any practical value, it may make BCH a substitute for fiat currency to some extent. Because it has completely different attributes – for example, if BCH wants to become the world’s largest digital asset trading platform, it needs to obtain a banking license to provide services; at the same time, it must have the characteristics of decentralization, so it must comply with securities regulations in order to operate.

2. Many people in the market now think this is an ICO bubble. The idea is simple: the project team promotes itself or raises funds through social media posts or Twitter advertisements. However, it is difficult to achieve the expected results due to the lack of sufficient liquidity and user base. For example, some companies may choose to purchase BCH at a high price and use it as collateral for mining. However, in reality, many blockchain companies hope to use their resources to build a more secure ecosystem and easily connect their applications to mainstream public chains. These projects are based on the Ethereum protocol, and BCH is an open protocol built on top of it.

In addition to these positive news, BCH itself is a project incubated by Blockstream, the company behind BitMEX, and the CEO of its parent company, Brian Armstrong, has also published a long article entitled “Can BitcoinSV Replace EOS?”. The article mentions, “BCH may surpass EOS in the future.”

This article was originally published on zycrypto and translated and compiled by Blockchain Knight. The English copyright belongs to the original author. For Chinese reprint, please contact the editor.