Cryptocurrency investor Brian Kelly believes bitcoin cash is an essential buy for digital currency holders in the wake of an important meeting of BCH miners over the weekend.
Bitcoin Cash: A Must-Have
In a Monday interview with CNBC‘s “Fast Money,” Kelly cited the development of a new bitcoin cash development fund as the principle catalyst for the forthcoming rally.
Miners are “going to take some of the rewards they get from mining and put it in a fund to build stuff on top of bitcoin cash,” Kelly, who heads BKCM investment firm, said of the fund. “That’s how blockchains gain value.”
He added: “You’re going to be getting more use cases to the extent that usefulness translates into value. That could be a positive for bitcoin cash.”
Bitcoin cash was among the worst performers last week following a hard fork upgrade that gave it 32MB blocks and smart contract capability. The upgrade was intended to bring new functionality to the blockchain but instead left a huge chunk of the BCH community behind. As of Friday, nearly one-in-five bitcoin cash nodes were running old software. In other words, they missed consensus.
The market’s reaction to the hard fork last week was relatively muted, which some say reflects general apathy toward bitcoin cash. Kelly’s bullish outlook shined the spotlight back on the digital currency, which continues to be one of the market’s best performers since early April in spite of its recent skid.
BCH/USD Price Levels
Bitcoin cash has shed more than 16% over the past seven days, dragging its market cap all the way down to $26 billion. By comparison, bitcoin values have declined less than 5% over the same period.
Despite its recent skid, bitcoin cash is trading well above its April low of $608.23.
More than $617 million worth of BCH exchanged hands on Tuesday, according to data provider CoinMarkeCap. Overall trade volumes for all cryptocurrencies was roughly $16 billion.
OKEx was the largest market for BCH transactions, accounting for roughly 20% of daily turnover. LBank facilitated 12% of daily transactions and HitBTC 9%.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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