In mid-2017, Bitcoin forked into two cryptocurrencies – Bitcoin Core and the newer Bitcoin Cash. Even though people had high hopes for the forked currency, the coin does not seem to be holding up well at the moment, as it struggles to gain the trust of cryptocurrency enthusiasts.
Bitcoin Cash (BCH) Struggling To Hold Up In Digital Commerce
BCH is a relatively new cryptocurrency, only launched last year in 2017. For those who are unaware, Bitcoin Cash forked off the original Bitcoin chain in August 2017, with Cash developers taking Bitcoin’s open-source code and altering it to fit their aspirations. The plan was to create a network, that did its best to become the primary form of digital cash’, but if its developers have currently succeeded is up for debate.
Unfortunately, even though the coin seems to provide its users with a significant number of benefits, at the moment, it doesn’t seem like the coin is holding up too well in the face of a bear market.
According to a recent report from Bloomberg, Bitcoin Cash’s usage in commerce has fallen by approximately 75% this year already in a month-over-month decline. Since December 2017, the market capitalization of Bitcoin Cash had also dropped by 85%, to a relatively small $9.4 billion.
In March 2018, payments through the Bitcoin Cash platform totaled $10.5 million. Just one month later, in May 2018, a total of $3.7 million in payments were processed with this cryptocurrency. This is a significant reduction in just a one-month period, leaving people to wonder whether Bitcoin Cash has a place in the future of this ever-growing industry.
Bitcoin also had a recent fall recently in monthly payments. In September 2017, Bitcoin payments peaked at a total of $412 million in a 30-day period. In May 2018 this month, we saw a 30-day payment total of $60 million, which is also a considerable fall in transactions.
The report explains that 17 individual cryptocurrency merchant processors were analyzed to gather this information, with the payment processors including GoCoin, BitPay, and Coinfify.
At the time of writing, BCH is trading at $525.23. The general value of this coin has also decreased over the past two weeks, in a likely correlation with other assets in this market. At the beginning of August, we saw BCH trading at over $700 a piece, but now it has hit a price of lower than $550.
What Is Bitcoin Cash All About?
Bitcoin has been widely regarded as the first cryptocurrency, released in 2009 by a pseudonymous developer named Satoshi Nakamoto. However, some feared that Bitcoin could not satisfy the needs of some, even though the value of BTC saw a substantial increase in value. During August 2017, Bitcoin underwent a hard fork, creating the so-called ‘Bitcoin Core’ and Bitcoin Cash in the process. While Bitcoin remained a popular store of value, Bitcoin Cash was developed to provide an efficient way for individuals to transact on the internet via a digital asset.
The cryptocurrency was developed to be fast and reliable, as well as to be simpler than the original Bitcoin cryptocurrency. Furthermore, Bitcoin Cash also offers a platform that is completely stable and is not ruled by a bank or any type of central authority, like a majority of other cryptocurrencies. The fees associated with Bitcoin Cash transactions are also much lower than the majority of other cryptocurrencies out there right now, including Bitcoin, due to the bigger block sizes of the Bitcoin Cash network.
Even though the Bitcoin Cash cryptocurrency was created as a fork of the original Bitcoin digital currency to provide a transparent way for people to transact on the internet, the coin is not doing as well as expected. At the moment, transactions on the Bitcoin Cash network does not only seem slow but also on the decline.