Cryptocurrency portfolio manager Brian Kelly has been touting Bitcoin Cash for weeks, and now he’s doubling down on his bullish call. Bitcoin Cash outperformed other leading digital currencies, the latter of which have taken it on the chin in recent weeks.
The Bitcoin Cash price advanced 6% over the last month compared to declines of 5%, 9% and 11% for bitcoin, Litecoin and Ripple, respectively. Kelly on CNBC made the case for Bitcoin Cash.
Kelly, the founder of investment firm BKCM, believes that Bitcoin Cash has more room to run, and he’s outlined the catalysts for the bullish outlook.
To take each of the catalysts in more detail, miners of Bitcoin Cash in recent days announced a new development fund that will be comprised of a percentage of the bounty they receive from creating new coins. The funds in the new portfolio will be directed toward the development of new technology “on top of Bitcoin Cash,” Kelly explained, adding that it’s akin to an App Store for the blockchain.
“That potentially could give value to Bitcoin Cash,” said Kelly, adding that it’s not the only blockchain project doing something like this.
The development fund leads to the second catalyst, which involves developers using the new blockchain technology to create more use cases for bitcoin cash. “To the extent that usefulness translates into value, that could be a positive for Bitcoin Cash,” he said.
Next, the development fund reflects “centralization of the miners,” which Kelly admits bucks the trend for cryptocurrencies. Ultimately, this could prove to be a negative but for now, the mission behind the development fund appears to be a good one.
As for the market, Kelly points to an uptrend in BCH that’s strengthened by the fact that it has been able to hold support. The technicals for BCH coupled with the catalysts he outlined led to his bullish call: “For me, that’s a place that I want to buy,” he said.
CNBC’s Fast Money took some tweets from viewers, one of which asked Kelly if he was actually early bitcoin backer Roger Ver. Ver, who is also known as “Bitcoin Jesus”, is a proponent of Bitcoin Cash over bitcoin core.
CNBC said they get a number of tweets basically accusing the business network of performing pump-and-dump schemes. One such accusation come from a Twitter user by Samson Mow, who Mow said Kelly has since blocked –
Meanwhile, CNBC host Melissa Lee responded on the air broadly to any accusations, saying: “That is absolutely not the case. We do not take any payments to promote anything on this show. Nothing.”
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Last modified: July 13, 2020 9:33 PM UTC