Bitcoin Cash Slingshots to the Moon?

  • Thomas Hughes

    The upcoming fork prompted investors to buy Bitcoin Cash in order to benefit from the extra coins created when the fork is complete.

Bitcoin Cash Slingshots to the Moon?
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The Bitcoin (BTC) community has been divided on whether to increase block size or not for a long time. The lack of consensus resulted in one hard fork already, a hard fork that gave birth to Bitcoin Cash (BCH).

Now the relatively new crypto BCH is facing the same problem, a lack of consensus, so the Bitcoin Cash Blockchain is set to fork again on the Nov. 15.

The upcoming fork prompted investors to buy BCH in order to benefit from the extra coins created when the fork is complete. Giants Binance and Coinbase added to bullish sentiment by announcing their support for the hard-fork.

Charts at a Glance

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During the last 7 days BCH/USD has seen its trading volume increase substantially and, maybe more importantly, has climbed 50.60%.  Along with the move, two major psychological barriers were broken, $500 and $600, leaving Bitcoin Cash trading around $631.

The next immediate hurdle is located at 655 which has acted as both support and resistance in the past. Because price has reacted at this level before it will probably show some sort of reaction when it reaches the level again. It must be noted that after consolidating around 415 and then shooting higher, the pair did not retract at all, a fact that took the Relative Strength Index deep into overbought territory on the daily charts. This fact, coupled with the resistance around 655, increases the chance of a retracement from this level that may find support around 590.

Support zone: 590 - 600

Resistance zone: 655

Most likely scenario: touch or even break of 655 followed by bearish retracements

Alternate scenario: break of immediate support, followed by choppy movement with a bearish bias

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Contents

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

👉MUST READ John McAfee Says Exactly When Bitcoin Will Hit $1 Mln, IBM’s Jesse Lund Goes for More Modest Forecast

Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Subscribe to U.Today on Twitter,and get involved in all top daily crypto news, stories and price predictions!
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