BCH GBP

Bitcoin cash (BCH) is a second-tier cryptocurrency, in the sense that according to Coinmarketcap, it is currently only the 30^th biggest cryptocurrency by market cap. The British Pound is a fiat currency major, but it doesn’t have the weight of the USD and the EUR in the global financial markets.

That considered, the BCH/GBP crypto/fiat pair is hardly a major. The trading volumes of this pair are under $200 million per day.

BCH has been forked off the bitcoin blockchain in 2017. For a while, it used to be among the leading cryptocurrencies, but then many other digital assets overtook it.

BCH

A community of crypto enthusiasts forked bitcoin cash off the bitcoin blockchain to solve some of the scalability and spending-related issues of the world’s top crypto asset.

On its base layer, bitcoin is hardly scalable. And in times of network congestion, confirmation times can expand, and network fees skyrocket. These are some of the problems BCH set out to solve. Its approach was to expand the block size to up to 32 MB. With such large blocks, the BCH network can process more transactions using less computing power. The downside is, however, that with fewer miners on the network and much less computing power needed, BCH is less secure than bitcoin and more exposed to nefarious activities like 50% attacks.

BCH gives its users access to cheap micro-transactions. Unlike bitcoin, BCH is suitable for buying cups of coffee, movie tickets, etc. It is also a store of value that carries the promise of future appreciation. BCH has retained bitcoin’s 21 million supply cap.

BCH allows pseudo-anonymous transactions. Depending on how they use it, BCH holders can secure more privacy.

GBP 

The official currency of the United Kingdom of Great Britain and Northern Ireland, the pound sterling is the oldest currency still in use that has been in continuous use since its beginnings. The GBP is a fiat currency major and the fourth most traded currency in the world behind the USD, EUR, and JPY. It is also a popular reserve currency.

Even while it was a member of the European Union, Britain stayed away from the eurozone. Electing to keep its currency as an essential part of its sovereignty made its eventual withdrawal from the EU easier and somewhat simpler.

One of the world’s strongest currencies and stronger than the USD, the GBP has not been immune to inflationary pressures. Over the last few years, these pressures have intensified, and the GBP is currently losing value at an accelerated pace, together with the world’s other fiat currencies. The impact of the global pandemic and the geopolitical strife that resulted from the Ukraine war have taken their toll on the purchasing power of the GBP.

BCH/GBP Analysis

The price of BCH tends to correlate with the price of bitcoin. The majority of the world’s top cryptocurrencies mimic the price actions of the crypto king.

The economic forces shaping the price of the BCH/GBP pair are similar to those that determine the BTC/USD price swings. The fiscal policies of the UK government add a layer of complexity to the picture.