Bitcoin Cash (BCH) is one of the biggest advantages in the cryptocurrency market. However, altcoins have not been able to break through in recent years. What causes BCH to fail? Read below for more information.
Bitcoin network “problem”
As Bitcoin (BTC) grows in popularity, more people are starting to use the leading cryptocurrency. This made transactions on the BTC network slow and costly.
In 2015, there was already a discussion about Bitcoin’s ease of use in everyday transactions. This is why scalability solutions such as Lightning Network (LN) were created. However, debate lingers on its security and whether Bitcoin really needs this second layer.
Due to this situation, the launch of LN was delayed and only arrived in 2018. But while there was such a debate, another one arose. An increase in the size of Bitcoin blocks.
Rise of Bitcoin Cash
Altcoins Born Out of Rebellion miner of the major cryptocurrencies that opposed the advancement of the network.
At the time, some miners wanted larger block sizes so they could perform more transactions per second.
With more blocks, BTC was expected to become a popular everyday payment currency.
However, there was a group of miners who disagreed with this story and wanted BTC to stay the same. It forked the Bitcoin network and created Bitcoin Cash. Led by Roger Verr, altcoins were developed with the goal of bigger blocks, faster transactions and lower transfer fees.
The idea proved to be a great one at the time — it made BCH reach the top 10 assets with the highest market cap in 2017. blockchain industry.
what happened?
BCH has similar characteristics to Bitcoin, such as controlled inflation and halving. However, there are three main points that distinguish the two cryptocurrencies. First, altcoin transactions are fast. Second, the fees for these transfers are low. Third, very few investors are interested in Bitcoin Cash.
Having a network that does a lot of transactions per second doesn’t help if no one is really interested in keeping the network’s adoption low.
bitcoin cash While it still has fans, many investors abandoned cryptocurrencies during their journey. The “improved Bitcoin” story turned out to be another type of crypto market hype.
Unlike BCH, no new BTC is needed as the major cryptocurrencies have already fulfilled their role of being decentralized and uncensored money.
Cryptocurrency market influencers such as Vitalik Buterin have criticized Bitcoin Cash as a failure, the low profitability that cryptocurrency mining offers and the growing certainty that it will never usurp Bitcoin’s throne. By emphasizing that the cryptocurrency market cap is never again It hit a record high in 2017.
