The Highly Anticipated Bitcoin Cash has Fallen Nearly 90% From Its High Position

Since the birth of Bitcoin Cash (BCH) on August 1, 2017, Bitcoin Cash (BCH) has often been compared to Bitcoin, and many believe that Bitcoin Cash (BCH) is a direct competitor to Bitcoin.

However, according to the Wall Street Journal, Bitcoin Cash, which has been diverted from Bitcoin, has fallen by nearly 90% compared to historical highs, which is disappointing. At the beginning, people hope that this kind of transaction faster and cheaper cryptocurrency (bch coin) will become the mainstream payment method.

The bear market of cryptocurrencies punishes investors who bought Bitcoin in the most ardent period of the currency last year. Take Bitcoin Cash as an example. According to industry research, Bitcoin has fallen 67% compared to the intraday high of $20089 set in December last year, while Bitcoin cash has fallen 88% from a high of $4355.62. On last Friday night, the bitcoin cash transaction price was around $533.

The value of hundreds of other bitcoins has also fallen sharply, but the poor performance of Bitcoin cash is particularly eye-catching because it involves a larger theme: can cryptocurrency truly become a way to replace traditional currency?

Proponents of Bitcoin cash believed that the BCH can solve problems that are blocking Bitcoin currency from becoming a mainstream payment tool like PayPal or Visa. They think that the original version of the Bitcoin network is too slow and the fees paid by users when sending Bitcoin to each other are too high. They point out that the bitterness of Bitcoin’s operation has led people to think of it as a value storage tool like gold, rather than buying things like Big Mac hamburgers and cappuccino.

After the failure to change Bitcoin from the inside failed to succeed, Bitcoin cash was created instead. The underlying technology of this new cryptocurrency is almost identical to the original bitcoin, with just a few fine-tunings designed to speed up transactions and reduce costs.

A year later, some studies pointed out that the forked currency-BCH did not meet the expectations of people. A study found that in May of this year, people paid only $3.8 million in bitcoin cash. According to analysis firm Chainalysis who conducted the study, this figure is much lower than the $10.5 million in March.

Bitcoin cash is still the fourth-largest cryptocurrency by market capitalization, but bch value relative to Bitcoin has shrunk, suggesting that investors who have bet on Bitcoin cash may have moved back to the original version of Bitcoin. The data shows that the value of per unit of bitcoin cash today is about 8% per bitcoin, far below the 18% in early May.

All of this data and information shows that the road for bitcoin cash to beat bitcoin and replace the traditional currency payments is rough. but this does not mean that it is impossible. It depends mainly on how Bitcoin cash will go in the coming year. let us wait and see!