Bitcoin and Bitcoin Cash are two of the most popular cryptocurrencies on the market. Bitcoin has the widest adoption and the largest market capitalization, while its fork Bitcoin Cash is the underdog looking to supplant the crypto giant from its throne.
Since the release of BCH, the Bitcoin community has been split in two and a civil war of sorts has erupted. On one side, we have the ardent supporters of the original Bitcoin. They wholeheartedly believe that BTC is the way forward and the future of the crypto industry. They see BCH as a stain on BTC’s reputation and merely a gimmick that will fade away as time progresses.
On the other side, we have the staunch supporters of BCH. They see a different future where Bitcoin is dethroned and Bitcoin Cash is the predominant cryptocurrency. They believe that BCH is a pure crypto which aims to accomplish all what BTC has failed in. Bitcoin Cash wasn’t much supported at the beginning but now it shows a solid growth.
Current price trend analysis BCH vs. BTC
To provide some background, we can look at price trends for BCH and BTC. Over the past year, the price of both currencies has changed dramatically.
|November 2019 (11th)||$9348.20||$291.02|
As you can see, Bitcoin’s price has gradually slipped off from the unprecedented highs of December 2017. Since then, it has dropped month after month and is currently stabilized. Bitcoin Cash has experienced a similar drop off and a recent surge. Furthermore, its market capitalization has increased from $7 billion (November 1st) to more than $9 billion (November 13th) which is a significant jump. With more and more crypto exchanges offering various ways of purchasing Bitcoin Cash, it becomes clear that this currency is going to stand at the market for long.
Reasons for market shifts
So why are prices changing in this direction? Why does Bitcoin continue to face uncertainty and have only little positive movements in price and market capitalization? Why, on the other hand, is Bitcoin Cash experiencing growth?
A rise in the popularity and value of BCH can partially be attributed to the apparent Bitcoin problems. This cryptocurrency is by no means perfect. It has ultimately fallen short of its original plan. The following are some disadvantages of Bitcoin.
- Scalability. No one thought Bitcoin would grow to the size it has. This cryptocurrency has been widely adopted, and the limits of the underlying blockchain system has been tested. How the system scales has resulted in clogged mining pools and increased transaction fees. This was one of the main selling points of Bitcoin – it was meant to offer virtually non-existent fees, however, it has not become a reality.
- Decentralization. Bitcoin is meant to be a decentralized system. There should be no control as there is with fiats. But as more Bitcoins were mined, it has become apparent that the available currency in circulation is controlled by a small group of users. True decentralization has not been achieved. Moreover, the issue of governance has become problematic too – as the currency has grown, people have realized that regulations are needed to ensure continued progress.
- Application Layer Security. The protocol layer security of Bitcoin is fantastic. However, the application layer is questionable – numerous instances of Bitcoin fraud and mishandling show that it has to be improved.
Bitcoin Cash advantages
Whilst Bitcoin experiences problems, Bitcoin Cash continues to blossom. It offers the following advantages over BTC:
- Lower transaction fee
- The increased block size of 32MB allowing for a greater volume of transactions
- Faster processing time
- Greater scalability
What future holds for BCH and BTC
The upcoming Bitcoin Cash hard fork is just around the corner which is having a huge impact on the price. Investors and crypto traders are purchasing BCH in anticipation of a price increase once the hard fork on the 15th of November happens.
The fork is required to upgrade protocols. Usually, this process goes unnoticed, but this time around, things are different. Crypto exchanges have taken note and some are giving their support for the hard fork. Moreover, the BCH community appears divided on the future of the coin. As a result, people are purchasing Bitcoin Cash in a greater volume which is pushing the price upwards. The uncertainty of what the scheduled hard fork may bring has a positive impact on the market.
There’s still a possibility that original Bitcoin will solve the problems it suffers from – and this would negatively affect Bitcoin Cash. If BTC has the same on offer, there will be no point in investing in BCH. The current situation is quite intriguing and leaves us with a lot to think about.