The Altcoin Bitcoin Cash ( BCH ) fell to a new record low in the currency pair with Bitcoin ( BTC ) after an important support could no longer stop the downward trend.
As the data from the crypto information portals Cointelegraph Markets and CoinMarketCap show, BCH / BTC is at its lowest level in the three-year lifespan of Bitcoin Cash.
Unrestrained on the way down
At the time of going to press, 1 BCH has an equivalent of 0.022 BTC, which is 92.2% less than the peak of 0.285 BTC that was posted in December 2017.
Bitcoin Cash was founded in August 2017 as an offshoot of Bitcoin Pro and was initially supported by many industry heads and companies. However, this support then subsided relatively quickly, as the offshoot could never achieve the same popularity as its „big brother“. The remaining users of the alternative cryptocurrency are therefore mostly only die-hard fans.
However, this group got into a conflict over the future of Altcoin, which resulted in another offshoot called Bitcoin SV ( BSV ) in 2018 . The driving forces behind the split were media mogul Calvin Ayre and BCH advocate Roger Ver .
After Bitcoin Cash reached an annual high of 0.044 BTC in February, the latest downward trend began. Since then, the downward spiral has only intensified, which also gives the experts cause for concern.
For example, crypto analyst Alistair Milne thinks that things are currently looking bad and that there is no end in sight for the downturn.
„Bcash is in the currency pair with Bitcoin on a price finding down“, as Milne accordingly stated yesterday Saturday. And further: „There is no more support left after we hit a new record low last week.“
Tim Draper withdraws his advocacy
Bitcoin is meanwhile fighting for market share with the regaining old coins. Due to the current hype about decentralized financial services ( DeFi ) and the associated cryptocurrencies , the market leader now has „only“ a market share of 55.8%, which is the lowest level since April 2019.
Even if the market dominance of Bitcoin is currently weakened, BTC is still clearly the boss in the ring compared to its offshoots BCH and BSV, which is increasingly becoming the undoing of the „little brothers“.
„To be honest, the whole thing looks like a big speculative bubble,“ as Narek Gevorgyan , managing director of the crypto information portal CoinStats, sums up the situation.
It is therefore a mystery to him how Bitcoin Cash is still one of the ten largest cryptocurrencies in terms of market capitalization.
“Nobody is interested in Bcash, but it’s still in the top 10,” said Gevorgyan, amazed.
Even the advocacy of prominent billionaire Tim Draper earlier this month couldn’t get BCH back on its feet.
After doubts arose about the authenticity of Draper’s advocacy, Draper confirmed in a later interview that he had actually campaigned for BCH.
“I spoke to Roger Ver about his cryptocurrency [BCH] … but I didn’t know it had a security problem. I just knew that the crypto currency came from him and that it can be moved very easily, ”Draper said in an interview. And further:
“So I canceled this tweet, but after doing a little more research, I withdrew it. I like people who try new things and I am not religiously tied to a cryptocurrency. “
The hashrate, i.e. the performance of the proof-of-work consensus procedure, of Bitcoin is miles ahead of BCH and BSV, even if they are considered together. The lack of activity in the blockchain networks of the two offshoots automatically creates security gaps, as Draper had mentioned.
According to the crypto market researchers from Crypto51 , it would cost 50 times as much per hour to start a so-called 51% attack on BTC as on BCH. Accordingly, an attack on BCH would have to invest almost 9,914 US dollars, while BTC would cost 554,672 US dollars. For Bitcoin Gold ( BTG ), another offshoot of Bitcoin, it would only need 312 US dollars.