What Bitcoin Cash's Volatile Price Says About Its Future

The sharp price fluctuations Bitcoin Cash has experienced during its first month make the digital currency’s future look uncertain.

In addition to experiencing price movements that have been all over the map, Bitcoin Cash’s team of developers has not shed much light on its future plans, CoinDesk reported.

Bitcoin Cash’s price nearly doubled within its first 24 hours, surging from roughly $394 to $757, according to figures provided by CoinMarketCap.

Because of this robust price increase, Bitcoin Cash quickly became one of the top three cryptocurrencies in terms of market capitalization (market cap), additional CoinMarketCap figures show.

This price volatility continued, causing Bitcoin Cash to rise to $386 on August 8 and then experience relative stability until August 17, when it began a sharp rally that pushed its value to an all-time high of $1,091.97 on August 19.

The digital currency didn’t trade at this elevated level for long, quickly falling below $600 and spending the rest of the month trading between $500 and $700.

At the time of report, Bitcoin Cash was trading at $557.26.

When asked how the alternative asset protocol will fare going forward, analysts offered mixed responses. Cryptocurrency trader Marius Rupsys, for example, described Bitcoin Cash’s future as being “less certain” than that of its digital sibling Bitcoin.

He emphasized that the cryptocurrency’s fork was “unilaterally initiated by one miner and very unexpected.”

Going forward, the alternative asset protocol will need to overcome many challenges to succeed, he emphasized.

“For this fork to succeed they would need to make wallets compatible, merchants accept it and use it, attract developers to join and many other things.”

Jacob Eliosoff also spoke to Bitcoin Cash’s current level of support, stating that while the cryptocurrency’s price and market cap may have risen to impressive levels, the digital asset certainly doesn’t have anywhere near as much backing from industry stakeholders like users and developers as Bitcoin does.

Bitcoin has taken [eight] years to get to where it is,” emphasized Iqbal Gandham, UK Managing Director at eToro, a multi-asset broker and social trading company. “[Bitcoin Cash] has had less time.”

He emphasized that Bitcoin Cash could benefit significantly if the Bitcoin network splits in two when it experiences a hard fork in November.

Should that happen, “we may just see Bitcoin cash gain strength at the expense of the other two,” said Ganham.

Going forward, the cryptocurrency community will need to decide whether Bitcoin or Bitcoin Cash is more optimal, he said.