Why Did Bitcoin Cash Jump 32% in One Day? Is the Hype Real?

Bitcoin cash price
Credit: istock.com/Boonrit Panyaphinitnugoon

Making Sense of the Bitcoin Cash Price

The Bitcoin Cash price has been on the minds of nearly every player in the cryptocurrency market. As Bitcoin Cash (BCH) attempts to follow its older sibling, Bitcoin (BTC), on a path towards success, many investors are wondering whether this new coin is something real or just puffed-up hype. So what is the true Bitcoin Cash value? In other words, is this steak all sizzle and no substance?

As much as I hate to disappoint all the BCH fanboys out there, I’d say the vast majority of investors are better off staying away from this sryptocurrency, at least for the time being.

To put it bluntly: if someone asked me if they should buy Bitcoin Cash, I would tell them to run—not walk—in the other direction. Why? Because the market right now is simply too volatile.

Bitcoin Cash price over the past week alone has gone from $300.00 to $400.00, back down to $200.00, then up to around $700.00 before falling back to $330.00 or so. Clearly, the BCH value has not been settled. This isn’t a predictable trajectory, nor is it one that can be counted on to even head in a single direction for more than a day.

What we have right now is a speculative buy where investors are trying to make a quick buck in the wake of the hard fork that created BCH.

The BCH price is so wild right now and that’s because no one is viewing it as a buy-and-hold asset at the moment, not to mention that there’s still a tonne of logistical issues still up in the air that could very well affect Bitcoin Cash futures.

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Data courtesy of CoinMarketCap

For instance, BCH is currently not listed on one of the largest coin exchanges in the world, Coinbase. While the exchange claimed it would allow people to access BCH come 2018, it hasn’t made a decision regarding whether it will allow the new coin to be traded. Coinbase’s reasoning? BCH is too new and unproven to have on its exchange.

If you’ve been following the cryptocurrency market, you know that it’s really saying something to call a particular coin unsafe. The market has been flooded with a ton of startup currencies, each one more specific and niche than the last, and each one hoping to be that diamond penny stock that goes from tenths of pennies to dollars overnight.

Sure, that’s an exciting market to play in, but the problem is that a lot of people with a lot of resources are going to be trying to outsmart the market and, by extension, any investor who gets involved with BCH. You’d be going up against day traders and people bent on making quick dollars off of the massive volatility, and that is no place for a layperson investor.

That doesn’t mean that Bitcoin Cash futures are all bleak. After all, BTC is notoriously volatile and yet it has now passed the $3,000 threshold and is still climbing.

So if you’re absolutely determined to buy Bitcoin Cash, I believe that waiting for a little bit longer to let the early fervor trading settle before getting involved could be a good idea. Not to mention the possible lawsuits that may arise as owners of BTC who want to access their new BCH coins may levy against Coinbase.

And it’s not as if there aren’t superior options on the market. Ethereum (ETH) is once again on the move back up towards $300.00, while Bitcoin as I mentioned earlier continues to perform very well in 2017.

Other coins like Ripple (XRP) are exciting, though Ripple is currently in the midst of a downturn over an overhyped jump. Hmm, sound familiar?

The cryptocurrency market is a tricky one to play, so keep that in mind before you’re taken in by the newest and shiniest coin on the market, even if the gains are huge day to day—the falls are usually just as bad, if not worse.