Why Has Bitcoin Cash (BCH) Failed?

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

The “problem” of the Bitcoin network

With the rise in popularity of Bitcoin (BTC), more people have started using the main cryptocurrency. That made the BTC network slow and expensive to trade.

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

This situation caused the launch of LN to be postponed, arriving only in 2018. However, while such a discussion existed, another one arose: the increase in the size of Bitcoin blocks.

Arrival of Bitcoin Cash

Altcoins arose from the rebellion of miners of the main cryptocurrency that did not agree with the progress of the network.

At the time, some miners wanted an increase in block size so they could do more transactions per second.

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

But there was a group of miners who did not agree with the narrative and wanted BTC to stay the same. That forked the Bitcoin network and gave rise to Bitcoin Cash. Led by Roger Ver, the altcoin was developed for the purpose of larger blocks, faster transactions, and lower transfer fees.

The idea turned out to be great at the time, something that saw BCH reach the top 10 assets with the highest market capitalization in 2017. But unfortunately for investors who bet on Bitcoin Cash, the cryptocurrency has had a low-key track record in the blockchain industry.

What happened?

BCH has similar features to Bitcoin, such as controlled inflation and even halving. However, three main points distinguish the two cryptocurrencies. First, the altcoin has fast transactions. Second, the fees for these transfers are low. Third, almost no investors are 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 keeping your adoption down.

bitcoin cash It still has its following, but many investors abandoned 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 main cryptocurrency already does its job of being decentralized and uncensored money very well, unlike BCH.

With influential figures in the cryptocurrency market, such as Vitalik Buterin, highlighting that Bitcoin Cash is a failure, the low profitability offered by cryptocurrency mining, and the growing certainty that it will never dethrone Bitcoin, it becomes clear why the capitalization of cryptocurrencies has never returned. reached its all-time high seen in 2017.