Why Has Bitcoin Cash (BCH) Failed?

Bitcoin Cash (BCH) was one of the biggest gainers in the cryptocurrency market. However, the altcoin has not been able to break through in recent years. What could have motivated the BCH failure? Read on for details.

Bitcoin Network “Problem”

With the rise in popularity of Bitcoin (BTC), more people have started using the primary cryptocurrency. It made the BTC network slow and expensive in its transactions.

In 2015, there was already a debate about the usability of Bitcoin in daily transactions. For this reason, scalability solutions such as the Lightning Network (LN) were created. However, the debate about the security and whether Bitcoin really needed this second layer has been prolonged.

This situation caused the launch of LN to be postponed and only arrive in 2018. Yet, while there was such a discussion, another arose: the increase in the size of Bitcoin blocks.

Arrival of Bitcoin Cash

The altcoin emerged from the rebellion of miners of the primary cryptocurrency who disagreed with the progress of the network.

At the time, some miners wanted an increase in block sizes so that more transactions could be performed per second.

The expectation was to increase the block so that BTC would become the currency to pay for common everyday things.

But there was a group of miners who disagreed with the narrative and wanted BTC to remain the same. It split the Bitcoin network and gave rise to Bitcoin Cash. Led by Roger Ver, the altcoin was developed with the aim of larger blocks, faster transactions and lower transfer fees.

The idea turned out to be a good one at the time – making BCH a top 10 asset with the highest market capitalization in 2017. But unfortunately for investors who took a chance on Bitcoin Cash, the cryptocurrency has had a low-key history in the blockchain industry.

What happened?

BCH has similar properties to Bitcoin, such as controlled inflation and even halving. However, there are three main points that separate the two cryptocurrencies. First, altcoins have fast transactions. Second, the fees for these transfers are low. Third, almost no investor is interested in Bitcoin Cash.

Having a network that does a lot of transactions per second is of no use if no one is really interested in it keeping it low.

Bitcoin Cash still has its fans, but many investors abandoned the cryptocurrency midway through its journey as the “improved Bitcoin” narrative turned out to be just another type of cryptocurrency market hype.

No one needs a new BTC, as the primary cryptocurrency already fulfills its role as decentralized and uncensored money very well, unlike BCH.

With influential figures in the crypto market, such as Vitalik Buterin, highlighting that Bitcoin Cash is a failure, the low profitability that crypto mining offers, and the growing certainty that it will never dethrone Bitcoin, it is clear why the cryptocurrency’s capitalization has never recovered. reached its record high level in 2017.