BitcoinCash or BCH is the 27th largest crypto by market cap. It was created as a fork of Bitcoin in 2017. It seems to have risen in popularity recently, therefore, is it worth adding to your portfolio? Let's take a look.

If we look at the 1-month chart, BCH is -8%, but that could be because of normal crypto volatility. So let's take a look at the year to date (YTD) chart:

YTD the position looks even worse with a -31% change since the beginning of the year. As a store of value or as a cash replacement, so far BCH isn't doing so well. Now we will take a look at a longer time frame.

Despite a big run-up, the current performance of BCH over 1 year is -40%. In order to find a positive return with BCH, we would need to go back to Dec 2020 and earlier to see a positive return.

So it seems that holding BitcoinCash long term is currently not profitable. But there are some positives about using BitcoinCash. Those are that you can very quickly and easily transfer Bitcoin as a cash substitute and with very low fees compared to say Bitcoin and Ethereum.

Therefore, my strategy will be to try and join the 1 BCH club initially, so that I have some liquid crypto on hand and then convert above this value to my crypto investments. I will keep evaluating the situation and consider if I need to increase my holdings.

Thanks for reading.

Chart data is taken from Google