Bitcoin Cash (BCH) was created as a fork of Bitcoin (BTC). It claimed to solve many of Bitcoin’s problems, but it has had some trouble over the past few weeks.
In fact, the market cap of Bitcoin Cash was overtaken, albeit briefly, by Polkadot.
Anyway, this article will cover some of the problems that have plagued Bitcoin Cash and why it might not be a wise investment. We will also offer our predictions for the future of various cryptocurrencies.
Bitcoin Cash loses Market Cap
First, Bitcoin Cash had a large drop in market cap on November 21st and was overtaken by Polkadot.
However, the market cap quickly recovered and Bitcoin Cash overtook Polkadot. At the time of writing, Bitcoin Cash has a 500% higher market cap than Polkadot.
Of course, this can change fast. Cryptocurrency is known for massive price fluctuations.
In our opinion, the long term trend is that Bitcoin Cash will continue to lose market cap due to some of the problems inherent to Bitcoin Cash. This article will explain some of those problems.
The problems with Bitcoin Cash
Here are some of the problems with Bitcoin Cash. These problems are all major problems that will prevent Bitcoin Cash from maintaining its position as a Top 10 cryptocurrency. In fact, Bitcoin Cash has already fallen out of the Top 5 of cryptocurrencies when measured by market cap.
The market does not view it as the “true” Bitcoin
The biggest problem with Bitcoin Cash, in our opinion, is that the market does not view Bitcoin Cash as the real Bitcoin.
That might not sound significant at first glance, but Bitcoin Cash was created as a fork of Bitcoin with the purpose of becoming the real Bitcoin. The founders of Bitcoin Cash have even claimed it is the “true” Bitcoin.
Unfortunately for them, the market does not view Bitcoin Cash as the true Bitcoin. And many in the cryptocurrency basically view Bitcoin Cash as a scam.
It’s Not Secure
The next biggest problem with Bitcoin Cash, and some say the biggest problem with it, is that the network is not secure. Why is the network secure?
The hash rate of Bitcoin Cash is far too low. This makes it possible for miners to launch a 51% attack on Bitcoin Cash.
This is a major security flaw. It’s such a huge security flaw that it’s a small miracle that the network has not already had a 51% attack.
Experts agree that it’s simply a matter of time before a 51% attack occurs on the network.
Of course, a 51% attack will cause users to lose trust in Bitcoin Cash – not like Bitcoin Cash has much trust at the moment. A massive sell off during a 51% attack is expected. And that would serve as the final nail in the coffin for the Bitcoin Cash project.
Miners Prefer Bitcoin Cash
A major network problem for Bitcoin Cash is that miners prefer mining Bitcoin rather than Bitcoin Cash.
Why do miners prefer mining Bitcoin?
The fees miners collect from Bitcoin are higher than the fees they collect from Bitcoin Cash. These fees are significantly higher, too.
Bitcoin Cash pays out around 0.5% of the transaction fee while Bitcoin pays upto 10% of the transaction fee.
This is important because a cryptocurrency is only as strong as its miners. Simply put, if not enough miners operate on the blockchain, then the cryptocurrency will cease to function. Transfer times will slow down and fees will rise – this causes people to leave the network, which only exacerbates the problem.
Roger Ver’s Questionable Background
Another problem with Bitcoin Cash is that Roger Ver, a prominent supporter of Bitcoin Cash, is a convicted felon. Granted, the felony was for selling explosives on eBay.
However, it’s not a good look when one of the biggest proponents of the cryptocurrency is a convicted felon.
What is the future of Bitcoin Cash?
In our opinion, the future of Bitcoin Cash is bleak. Does that mean it will go to $0.00 tomorrow?
No, Bitcoin Cash might stay around for years to come. However, it has a downward trajectory due to all the problems facing the cryptocurrency.
This becomes more apparent when you view the price of Bitcoin Cash in Bitcoin rather than United States Dollars. The price when viewed from that perspective has dropped – dramatically. It had a high of 0.2 satoshis and currently sits at around 0.016 satoshis.
That’s an 80% drop in price.
What is Polkadot?
This article is more about Bitcoin Cash than Polkadot, so we will keep this brief.
Polkadot is essentially a competitor of Ethereum. It has the same roadmap of creating a blockchain ecosystem that allows users to build their own cryptocurrencies on top of the Polkadot platform.
Ethereum has its own problem, which makes Polkadot a good candidate for a replacement when Ethereum eventually collapses.
Is Bitcoin Cash a good investment?
The viability of Bitcoin Cash as an investment depends on your timeline. Do you want a short term investment with the potential to increase by 100% or more?
Bitcoin Cash might work out for you.
On the other hand, if you are searching for a good long-term or medium-term cryptocurrency investment, then we strongly discourage you from investing in Bitcoin Cash. Ripple or Bitcoin are probably better investments in that case.
Bitcoin Cash’s days are numbered. It will likely not survive the next cryptocurrency crash.
Well, that’s all we have to say about Bitcoin Cash. It’s not a highly regarded cryptocurrency within the cryptocurrency community. And it’s high price is mostly a mystery.
It simply has too many problems to complete its stated goal of overtaking Bitcoin. Without overtaking Bitcoin, Bitcoin Cash will slowly fade to zero.
We recommend looking elsewhere if you plan on purchasing a cryptocurrency for investment.