Bitcoin Cash (BCH) is a rather controversial fork of Bitcoin (BTC) with a market cap of $17.2 Billion and currently ranked as the fourth largest coin by market cap. When it first came into existence, some believed that this could actually be a better version of Bitcoin (BTC). It did appear to be a lot faster and cheaper than Bitcoin (BTC) in the beginning and still is. However, once Bitcoin (BTC) solves all of these issues with the help of Lightning Network or similar future upgrades, what will be the fate of Bitcoin Cash (BCH)?
Bitcoin Cash (BTC) is still popular among many investors as a ‘spendable’ version of Bitcoin (BTC). This means that it makes sense to order a $50 pizza with Bitcoin Cash (BTC) but with Bitcoin (BTC) you will end up paying a lot more in fees. So, it is not worth it to pay in Bitcoin (BTC) which is true. Currently, due to low volume and transactions, the fees are much lower for Bitcoin (BTC) but when the network was operating full throttle around $20,000, the fees were incredibly higher. This is because miners prefer to mine higher value transactions first which reduces demand for smaller value transaction blocks resulting in higher fees. Bitcoin Cash (BCH) is currently doing a good job at alleviating that problem but the question remains, “How long will Bitcoin Cash (BCH) have this edge?”
The last few months, Bitcoin Cash (BCH) founder, Roger Ver has been aggressively trying to promote Bitcoin Cash (BCH) as the real Bitcoin (BTC). Roger Ver also owns Bitcoin.com which has been instrumental in ‘engineering’ confusion to mislead new investors into thinking that Bitcoin Cash (BCH) is the original Bitcoin (BTC). These practices also resulted in a Twitter ban for Bitcoin Cash (BCH) but Roger Ver continued with his propaganda.
On the trading side, Bitcoin Cash (BCH) is currently trading well against Bitcoin (BTC) in a bullish channel. The price is trading closely in a triangle with the possibility of a break out in the weeks ahead. However, the situation looks entirely different on the BCH/USD chart as the price is in a clear downtrend and trading in a bearish channel but is being supported by a strong support line. The next few weeks might be instrumental to Bitcoin Cash (BCH)’s price movement for the rest of the year.
As long as the overall market grows, Bitcoin Cash (BCH) will most likely continue to grow. This is a fairly new market and investors looking to diversify are putting funds into most top 20 coins, Bitcoin Cash (BCH) included. This is the exact same situation as the one we had during the dot com boom. During the early years, investors were putting money into any and all kinds of companies with little to no regard for fundamentals or long term prospects. However, as the stock market matured, these factors began to carry more weight and investors became more cautious. Bitcoin Cash (BCH) will most likely face a similar fate and will thus continue to grow for the time being despite the fact that Bitcoin Cash (BCH) does not have any significant edge over Bitcoin (BTC) to justify its fourth position.