Bitcoin Cash is among the most familiar yet unknown cryptocurrencies. Being an investor, chances are that you must’ve heard of the token but don’t know what the token is about.
Bitcoin Cash or BCH is often referred to as BTCs sidekick, only mentioned when there’s a discussion around Bitcoin forks. However, that’s not all. Bitcoin Cash (BCH) is a crypto project designed with several characteristics similar to Bitcoin (BTC). But interestingly, the token also integrates several features and changes that set it apart.
Since its inception in 2017, it has shown a prospect for positive growth and is currently ranking as the 30th largest crypto in the world. Still, many investors continue to have fluctuating opinions about the token.
So to help you better, we’ve explored the token’s different aspects, usability, and other factors to determine BTC cash price prediction for 2025. Let’s check it out in the following sections of the blog.
Bitcoin Cash: How Was BCH Formed?
Bitcoin Cash (BCH) is a crypto token formed out of the fork in Bitcoin protocol back in 2017. For readers who have no idea about a fork, it happens when a project’s community isn’t ready to accept a specific change and decides to form a new token.
The primary objective of the BCH token was to address the issues concerning increasing controversies and transaction fees in the Blockchain network. BCH was designed as a peer-to-peer payment system that eliminates regulatory authorities and other third parties involved in financial transactions.
Since peer-to-peer transactions would sit at the core of the security and mainframe transactions, BCH was designed to facilitate scalability. It increased the block size from 1MB to 8MB, acquiring a high transaction speed as a new token.
Thanks to its revamped bite-size, Bitcoin Cash is primarily used as an affordable payment system, keeping it similar to Bitcoin in many aspects. Talking of the USP of the token, it initiates transactions at a minimal fee below $.01, with a transaction confirmation time that is significantly less than Bitcoin (keeping it within seconds.
Bitcoin Cash is maintained by an active community of developers who see BCH as a necessary alternative to Bitcoin. It is mainly because they view BTC as more of an investment instrument than a reliable and affordable payment system.
However, this info alone doesn’t help determine BCHs future potential. So to help you better, we’ve listed the core fundamentals that set aside the token in the following section.
Bitcoin Cash: Core Fundamentals
As a token, Bitcoin Cash represents a core re-design of the very nature of money. Here’s an overview of the fundamentals of Bitcoin Cash:
- It’s open to anyone: BCH was designed keeping the concept of decentralization in mind. So to keep up with the same concept, there are no rightful owners to control Bitcoin Cash.
There is no CEO, so users need to seek permission to use the token. Additionally, since no identities are tied to the transactions, this keeps the BCH free to use by anyone without censorship.
- The network is transparent: Adding to the list of fundamentals is the transparency of the BCH network. All transactions over the network are recorded on a public Blockchain.
What’s more? The ledger is updated regularly in blocks connected to form a ‘chain’ of transactions. This way, anyone who decides to transact over the platform can view its ownership history, eliminating any fraud or potential.
- A network determined by rules: The nodes used in the BCH project’s development make it unique. It follows a unique protocol set that allows the token to achieve consensus on the ledger’s state. This consensus helps the token to hold the ‘truth’ behind the ownership of its tokens.
However, the protocol present on the network can evolve as per the needs of the participants, even if the modifications require a high degree of consensus. This way, Bitcoin Cash adapts to become a quasi-political system where participants can form a social contract among themselves.
- Secure: The PoW (Proof of Work) consensus revolves around intense competition. Miners signing up for this mechanism need to undergo intense competition to add new blocks to the existing crypto chain.
This adds to the energy and hardware costs of the entire mining procedure. Besides, it also contributes to the security aspect of the network alongside the principles driven by game theory. The PoW mechanism secures the network from any attack and guarantees minimum damage in the process.
- Limited supply: BCH has a limited supply of only 21 million tokens, making it an altcoin with limited supply. This makes Bitcoin Cash one of the few crypto projects with a hard cap.
Thanks to the limited supply, there’s only a limit to which the token can be mined. This way, the project works on a limited supply but increasing demand concept, adding to its value over time.
BTC Vs. BCH: Why Is It Different?
Even though both the tokens are unique, BCH is often compared to the likes of BTC. This is because BCH was developed to increase the speed of transactions while keeping them affordable, while BTC, on the contrary, is a means of value for investors.
Additionally, BCH has a block size of 32 MB, initiating more transactions per block than BTC. The average number per block transaction for Bitcoin was between 1000 – 1500 in 2017.
Another difference between BTC and BCH is SegWit (Segregated Witness), another solution designed to accommodate more transactions per block. As an investor, you must have a profound idea of the difference before investing in either token.
Now that we know the core fundamentals, unique factors, and the difference between BTC and BCH, let’s look at its price performance.
BCH: Price Movements Over The Years
Talking of its price movement over the years, we came across an unusual price movement for the Bitcoin Cash token. Even amidst the crypto winter early this year, the token continued to touch the price range of its inception.
The token was launched in 2017 at $440, whereas it was moving in a rangebound motion around the $300-350 range in February. BCH has remained consistent over the years, unlike the other benchmark tokens (BTC or ETH).
Although there have been some price spikes, the token continued to perform consistently around the $300-400 range. But, BCH is yet to see an increase in its average price, which is generally the case with other top-performing crypto tokens.
Our Technical Analysis At Blockchain Gossip
BCH had long been on the descending wedge since mid-summer of 2021. As a result, the coin was mostly an underperformer even amidst the bullish phase of 2021. However, things changed after BCH entered the strong support zone post-February 2022. The token bounced back after hitting the range of $380-400.
If we look at it over a monthly scale, this entry point could be considered a ‘head’ in the inverse head-and-shoulders pattern. Here, the ‘shoulder’ is a slight lull in the price action during the final months of December.
Keeping the same pattern in mind, the token followed a similar trend, falling to $89 in the mid-weeks of December. However, it has recovered significantly post then, bouncing back to the $100 range, representing a healthy motion.
BCH: Price Prediction For 2025
2025 could be a great year for the Bitcoin Cash token. However, looking at its price movements for 2022 and analyzing the past performance, we’re only optimistic about Bitcoin Cash’s returns in 2025.
So keeping in mind that the market will be healthy and BCH will’ve gathered enough media attention by then, we expect the token to hit $250 by the end of 2025. However, if things fail to keep up with the suggested rate, then we expect the Bitcoin Cash price prediction for 2025 to revolve around an average price of $200.
Overall, the project is a great option to multiply your future returns. So if you haven’t already, now could be a good time to start.
Note: Crypto markets are known for their volatility. Invest only once you’ve acquired enough idea of the market.