Achieving the vision of the creator of Bitcoin has been a goal among cryptocurrency creators. Bitcoin Cash (BCH) seeks to rescue the original vision of Satoshi Nakamoto. Thus, it was proposed to recover the capacity of cryptocurrencies to be a means of payment for goods and services. He brought a solid currency with him to the world, fulfilling Bitcoin’s original promise as “Electronic Peer-to-peer Money”.
This is why Bitcoin Cash attempted to create a cryptocurrency with faster transactions than Bitcoin. Thus becoming a currency with the ability to perform the same functions as fiat money.
Creating a decentralized currency has its consequences. Since it is the Bitcoin community itself that has the power over the path that the cryptocurrency has, a constant debate in the crypto world.
Bitcoin Cash’s broken promises
Bitcoin Cash became a sure promise for users and merchants. Benefited from low rates and reliable confirmations. The future was bright with unrestricted growth, global adoption, permissionless innovation, and decentralized development.
If you evaluate Bitcoin Cash’s escalation to date according to its initial purpose, it certainly has not achieved its goals. And it is that, if BCH arose to dispute Bitcoin, this latest cryptocurrency maintains its superiority over the crypto world.
This despite attempts to replace Bitcoin, even trying to take the name of the cryptocurrency on social media. However, the BTC has managed to maintain its dominance and recognition worldwide, leaving the BCH aside.
The lunge of Halving and Bitcoin Cash
The blockchain that made Bitcoin a hard fork in the past, took a hard hit on April 8, 2020. It cut its block rewards in half, causing many miners to warn that gross margins fell to almost zero.
This is because the Bitcoin Cash (BCH) blockchain has had its first Halving. As a result of the planned reduction. The reward for each new block on the network has been reduced from 12.5 BCH to 6.25 BCH. This has raised the question of whether Bitcoin Cash is still a recommended investment.
Such a significant reduction was not, of course, overlooked by miners, who are barely managing to recoup their costs due to the recent collapse of the crypto market.
Bitcoin Cash Halving concludes with an exodus of miners and the collapse of their profitability. Therefore, as a result of the decreased reward, BCH miners began to massively connect their mining equipment to more “profitable” assets.
Yassine Elmandjra, cryptocurrency analyst at ARK Invest, said in a Tweet From May 23, 2020, the Bitcoin Cash (BCH) hashrate fell 30% since its Halving event.
A sudden death for BCH?
The drop in the hash rate for Bitcoin Cash (BCH) has been nothing short of drastic. Since April 8, it has fallen 60% to low levels not seen since April 2019.
Since his Halving event he appears to have intensified selling pressure. Something that is feared may also happen in Bitcoin, now that it is trapped in a side market after the third Halving. Although at the moment its hash rate as well as its offer seem to be stable.
BCH was still far from recovering more than 50 percent of its February values. In fact, the cryptocurrency market was registering another pullback, after which the price of the coin fell to $ 231.80 on the charts. However, although the fall in its price was particular, a respite could exist in the short term.
The Bitcoin Cash hash rate continues to rise after reaching a local low in mid-March and as of the date of this article’s release, the BCH price was up to $ 242.65.
These results have generated uneasy responses from users. Due to the uncertainty that investing in BCH generates, many of the experts’ predictions have been fulfilled.
However, the Bitcoin Cash crypto community does not intend to leave the ecosystem. Soon one of the main Bitcoin forks in terms of capitalization, will be able to add the transaction mixing function, thus increasing the level of anonymity in the network. What is expected to make the asset more interesting, increasing its technological capabilities and therefore its demand.
In addition, the loyalty of Bitcoin Cash miners has been maintained thanks to the first of its mixing function, a property that BCH has enacted since its birth, promising users a benefit in its favor. Perhaps Bitcoin Cash is still an option to choose.