5 years after its launch, Bitcoin Cash (BCH) is worth just 0.6% of a Bitcoin (BTC) – CryptoMode

Today is an interesting day in cryptocurrency history. It is the day the bitcoin network split from bitcoin cash and both networks never had to intersect again. A lot has changed since then, but the big development is that BCH is trading at less than 1% of Bitcoin’s value, and with good reason.

Five years of Bitcoin Cash

It is commendable to see that the Bitcoin Cash network has lasted for five years. That’s a lot longer than people initially expected. Unfortunately, the network never lived up to expectations and continues to lose ground on core metrics. As a fork of Bitcoin, Bitcoin Cash will likely never succeed to threaten let alone surpass the world’s leading cryptocurrency.

The Bitcoin and Bitcoin Cash networks split on August 1, 2017 Network Block #478559. The reason for this split was the activation of Segregated Witness – and the Lightning Network – on Bitcoin. Additionally, Bitcoin users wanted to keep network blocks small, while others wanted larger blocks to support more transactions. With the support of Bitmain and other parties, the goal was to fork bitcoin into 8MB blocks on another chain.

From that date, Bitcoin Cash became an altcoin by the dozen. Despite offering larger network blocks and lower transaction fees, it never attracted miners and eventually began to fall into oblivion. However, the network still exists today as BCH is trading at $138. Unfortunately, that’s less than 1% of Bitcoin’s value, further confirming how this network has lost all initial momentum. Moreover, it has not reached its all-time high of $3,785 since December 20, 2017 and is unlikely to return to such a level.

With a price this low, one has to wonder if Bitcoin Cash was a worthwhile venture. It’s important for people to pursue new ideas that they believe will work, but claims that BCH is “the new BTC” should fail from day one. The community and market have spoken for the past five years, relegating Bitcoin Cash to the lower market cap rankings that most people won’t even scroll down to. Additionally, some of its network stats suggest things aren’t necessarily going to improve any time soon.

Core BCH stats are bleak

Because Bitcoin Cash relies on proof-of-work like Bitcoin, it requires miner support to secure the network. While Bitcoin over 99% of combined hashrate – of BTC, BCH, BSV and XEC – Bitcoin Cash accounts for 0.57%. This percentage corresponds to the value of Bitcoin that a BCH has, confirming some overlap between the two. Additionally, it accounts for 1.35% of total transactions and 0.16% of block sizes. Bitcoin SV, forked from Bitcoin Cash, beats its “parents” by a wide margin in these two segments.

Considering Bitcoin Cash was designed for larger blocks, one would expect very large blocks to hit the network. Interestingly, practically all blocks are smaller than the size of Bitcoin. Larger blocks are not required if there are no transactions to fill them with. Even though BTC is over 1200x more expensive for transactions, there is not much interest in using BCH. This is worrying, even though both eCash and Bitcoin SV are still cheaper to use than Bitcoin Cash.

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