What’s Hot in Crypto this week?
Bitcoin Cash (BCH) is a cryptocurrency created through a hard fork of the bitcoin network, which occurred in August 2017. Those who supported larger blocks on the network split from BTC to increase the block size from 1 MB to 8 MB on Bitcoin Cash.
Why is BCH hot now?
An increasing number of users are buying Bitcoin Cash, because the price of Bitcoin skyrocketed these past few months. Indeed, despite the split from Bitcoin, the rise and fall of BCH always closely mirrors it. The sudden spike in user activity has been no exception.
Both BTC and BCH quickly gained momentum in mid-October 2020. After Bitcoin hit its all-time high above $34,000 over the weekend, price speculation on the Bitcoin Cash network seemed to rise.
How has BCH’s score changed?
BCH's Fundamental Crypto Asset Score went up 10-points (1.3%), driven by a 19-point (2.13%) rise in User Activity.
This brought Bitcoin Cash back as a member of the "FCAS 25." These are reevaluated each month and must be ranked within the Top 25 for at least 40 days to qualify. The FCAS is a comparative metric that evaluates the fundamental health of a crypto project, and the FCAS 25 is a weighted moving average of the top 25 projects that aims to show the overall health of the crypto industry.
What’s Flipside’s Take?
It’s worth noting the risk of investing in BCH remains high because no one is really using the token for anything other than speculation, and its price could drop at any moment. The submetric “project utilization” of BCH, which goes into measuring an asset’s user activity, remains alarmingly low. At the same time, “Risk,” which measures the volatility of an asset also ranks very poorly, which comes at no surprise considering the highly unstable price history of Bitcoin Cash.
The Flipside Crypto Asset Score Tracker provides institutional and sophisticated retail investors the ability to track over 500 cryptocurrencies' fundamentals. FCAS Tracker is currently free to a select group of new users as it continues to develop the product. Visit Flipside here to gain access to Flipside Analytics.