Cryptocurrency trader and founder of BKCM investment firm, Brian Kelly said Monday bitcoin cash is the must-own cryptocurrency of the moment.
Chief reason for such recommendation from Kelly is the formation of a new development fund for bitcoin cash network backed by BCH miners.
On Saturday, BCH miners reportedly had a meeting dedicated to funding for a BCH development fund. As per their proposal, the miners will contribute some part of their mining rewards to the bitcoin cash development fund, and that capital will be used to carry on the necessary development of the Bitcoin Cash blockchain.
Kelly continued:
“That’s how blockchains gain value. 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.”
Kelly had his digital chart out to show BCH’s 6% rally over the last month has made it a leader among the top cryptocurrencies. BCH was at a low of almost $600 in mid-April from where it increased dramatically through to early May when it topped $1,800 and has steadily lost value to where it trades today at $1,235 according to livecoinwatch.com.
Bitcoin cash is one of the worst performers last week following a hard fork on their network, a planned upgrade that gave it 32MB blocks and smart contract capability. The fork was intended to bring new functionality to the blockchain but instead missed a consensus – it left a huge chunk of the BCH community behind. As of Friday, nearly one-in-five bitcoin cash nodes were running old software.
Bitcoin Cash is ranked as the 4th largest coin with the market cap over $20.6B and trading volume of $622M per day. The trading volume has dropped significantly from over $1B registered on May 14, which may be attributed to BCH hard fork that happened on May 15.
