Bitcoin Cash is the 11th largest cryptocurrency in the world, and since its launch in late 2016, it has turned out to be a good investment. It has a market value of $12.659 billion and is trading at $670.74. Coinmarketcap says this cryptocurrency has a value of $670.74. So, it was a good BTC fork, and many crypto experts think it will keep growing in the future.
Over the last two years, BCH hasn’t done very well compared to Bitcoin. In December 2017, 1 BCH was worth 0.285 BTC. At the time, it was worth 0.0115 BTC. In this article, we’ll look at how has done in the past to figure out why it’s so low.
Price Comparison: BTC and BCH
A group of people tried to improve BTC by forking it, and that’s how Bitcoin Cash was born in August 2016. As a result, Bitcoin Cash has the same technology as Bitcoin. But it is faster, cheaper, and more scalable than Bitcoin, which is why it is better for now. In the same way, more and more people are using this cryptocurrency, which makes its value rise over time.
After it was released, BCH got a lot of support from people in the crypto world. It took a month for the currency to spread, and then about 1500 blocks were made. Mining pools like ViaBTC and Antpool also got behind this new digital currency and sent a lot of hash-rate to the BCH mining pool. Price started to fall after a few months. This made Bitcoin Cash so cheap in comparison to Bitcoin.
Technical Price Analysis of BCH
When Bitcoin Cash came out in 2016, it was backed by a lot of businesses and experts in the field. At the time, it was worth $543. Bitcoin reached its all-time high of $20,000. In December 2017, the market price reached $3,556, which was about the same time.
BCH wasn’t any better than the rest of the market. In the second half of January 2018, the price of BTC went down, too. Until it was back to where it was at the start. As time went on, the price kept going down. However, between February and November 2020, the cryptocurrency became a little more stable. Its prices ranged from $230 to $270. Occasionally, it went above these levels, but most of the time, it didn’t go above these limits.
Bitcoin Cash doesn’t seem to be following Bitcoin’s lead right now, but it has in the past. While the price of BTC has risen by thousands of dollars in the past, Bitcoin Cash hasn’t changed much. If it had reached its all-time high, it would be worth $557.82 right now.
Reasons Why Bitcoin Cash Didn’t do Well
In 2018, BCH split, resulting in Bitcoin SV (BSV). Various BCH developers recommended some changes to the coin that were not universally accepted. This caused a hard split from the BCH blockchain to form Satoshi’s Vision (SV). Its name comes from Satoshi Nakamoto’s Bitcoin white paper.
BSV’s blockchain is bigger than Bitcoin’s. In this way, it improves user experience, reduces transaction costs, and increases security. However, virtual currency has not gained the desired backing. Because many users had no idea how it operated, they avoided trading and investing. Bitcoin SV is now the 18th biggest cryptocurrency in the world, valued at $5.035 billion.
Later, Bitcoin Cash’s blockchain was divided again, resulting in BCH ABC and BCH Node (BCN). The crypto community was wondering which would be dominant and if the original would become official. Eventually, BCH ABC won and renamed itself BCH. As you can see, the names of these cryptocurrencies are quite similar. So many novice investors and traders shun these cryptocurrencies to prevent losses.
Bitcoin Cash Halves
The phrase Bitcoin halving should be recognizable to expert investors and traders. This is a BTC reward halving event. The latest bitcoin halving was in May 2020, and the next is scheduled for November 2021. When this happens, the crypto market price spikes then plummets.
Before the latest BCH halving, there was a Bitcoin halving. Block rewards fell from 12.5 to 6.25, forcing BCH to mine Bitcoin for larger block rewards.
BCH Miners Face Risky Conditions
Another factor for Bitcoin Cash’s low price is miners’ terrible working conditions. The BCH network’s economic throughput is at an all-time low. Original capacity was 90,000 transactions per second. It can now only handle about 56,000 transactions per second, lowering miner profits.
Because the hash rate has reduced by 3% following Bitcoin’s halving, miners only get 0.05 percent of transaction fees. Compared to this, BTC miners earn about 10% from transaction fees.
A decreased hash rate also leads to network unpredictability. Consequently, rogue miners may simply mount a 51 percent assault on the BCH network. Fortunately, the network has not yet been seriously attacked.
Final Words on BCH Price
While BTC is becoming more popular, crypto analysts are still curious why BCH is so low, although it has always gone up with Bitcoin. There is a better cryptocurrency called Bitcoin Cash than there is BTC itself.
But it hasn’t been able to match Bitcoin’s accomplishment for the reasons above. Thank goodness, BCH still has a group of people who support it even though it has to deal with a lot of problems.
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