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Bitcoin Cash (BCH) is experiencing phenomenal growth. For example, Bitcoin Cash’s Market Capitalization grew from $6.03 billion on March 3, 2022, to $7.31 billion on March 30, 2022.
Similarly, Bitcoin Cash’s Coin Price rose from $326.09 on March 1, 2022, to $384.09 on March 30, 2022. Interest in BCH is also growing. The 24-Hour Market Volume grew from $4.5 billion on March 2, 2022, to $4.55 billion on March 30, 2022. Consequently, Bitcoin Cash was CoinMarketCap’s 26th largest cryptocurrency on March 30, 2022.
Why is Bitcoin Cash surging?
So why is Bitcoin Cash surging in popularity? Inflation fears in the United States are the most probable factor driving interest in Bitcoin Cash.
For example, inflation is now Americans’ chief economic worry, Gallup reports. Gallup estimates 17% of Americans call inflation the USA’s greatest problem in a March 2022 Gallup Poll. Gallup estimates 59% of Americans were worrying about inflation in March 2022.
Consequently, some investors buy cryptocurrencies such as Bitcoin because they are more resistant to inflation than the dollar. Inflation drives Bitcoin Cash’s price because BCH is a cheaper Bitcoin alternative. For example, Mr. Market paid $47,101.13 for a Bitcoin (BTC) on March 30, 2022. Many people view Bitcoin as too expensive, but they view Bitcoin Cash’s $326.09 Coin Price on March 30, 2022 as affordable.
Will Yuan-For-Oil boost Bitcoin Cash?
A related fear is worries the Chinese Yuan could supplant the US Dollar as the world’s reserve currency. Rumors that Saudi and Chinese officials are negotiating a deal to allow buyers to pay for oil with Renminbi, drive such fears.
Historically, Saudi Arabia’s government has only accepted US dollars in payment for oil since 1975. The dollar’s linkage to oil is one reason people regard it as the global reserve currency.
The dollar could lose enormous value if it loses its reserve currency or petrodollar status. Such a loss could reduce the dollar’s price and drive US inflation higher. Speculators, fearing a dollar collapse, will move their money into alternatives such as Bitcoin and Bitcoin Cash. Bitcoin Cash prices will keep surging as inflation fears grow because of the Ukraine War.