According to Kim Dotcom, the price of Bitcoin Cash (BCH) could rise to $3,000 next year.
Bitcoin Cash was born in August 2017 from a fork of Bitcoin, and since then its price has taken a path that only broadly followed that of BTC.
Its initial value was around $700, but fell almost immediately to $300.
Thanks to the great speculative bubble at the end of 2017, it reached an all-time high of $3,785 on December 20th, and has not been able to approach those figures since.
It even fell below $80 in mid-December 2018, almost a tenth of its initial price, but then slowly climbed back up to close to $500 in February this year.
After the collapse in mid-March, the price recovered first above $200, and then above $300.
In other words, it is now worth less than a tenth of what it was at its peak.
According to Kim Dotcom on Twitter, he believes that BCH could return to close to its all-time highs over the next year.
Bitcoin > great for asset storage
Bitcoin Cash > great for payments
Bitcoin Cash at $310 today.
I expect $3000+ next year.
More and more vendors accept crypto. Vendors want low fees and fast transactions.
I’m bullish on BCH.
I’ll retweet this in a year.
— Kim Dotcom (@KimDotcom) December 17, 2020
Kim Dotcom’s prediction on Bitcoin Cash
Kim argues that while Bitcoin (BTC) is great as a store of value, Bitcoin Cash (BCH) would be great for payments.
However, if, for example, we compare the number of average daily transactions that are recorded on the two respective blockchains, it turns out that those of BCH are still significantly less than a tenth of those of BTC, which is therefore actually much more widely used.
Furthermore, the number of average daily transactions on BCH has not increased significantly over the years, so for now there is no upward trend in this respect.
However, Kim says that from now on an increasing number of retailers will accept cryptocurrencies as a form of payment, but they will want fast transactions and low commission costs.
In fact, BTC is not yet very competitive in this respect, because the use of the Lightning Network is not yet widespread.
This is why he is bullish on BCH, assuming that its value could rise from the current $310 to $3,000 over the next 12 months.