Bitcoin Cash prices have yet to emerge from the ditch into which they tumbled during 2018. Honestly though, this could be said of almost any cryptocurrency or token. Many blockchain analysts believe that blockchain technology is going to rise from the ashes of these markets, but it has yet to happen.
If we accept that cryptocurrency will recover, how can we determine which projects will thrive once more? And will Bitcoin Cash be among them? We’ll take a look at various factors for and against Bitcoin Cash as a leader in the cryptocurrency space in 2019. You might want to invest in Bitcoin Cash, or not, after reading this Bitcoin Cash review. Reasonable people can have differing opinions on the subject.
Bitcoin Cash Prices: Current Price and Analysis
Bitcoin Cash suffered a major hard fork in late 2018. A rival faction led by Craig “Fake Satoshi” Wright branched off from the main chain, along with a significant mining cohort. The new blockchain and cryptocurrency were called “Bitcoin Satoshi’s Vision”, which Bitcoin Cash remained Bitcoin Cash.
It’s well documented that Craig Wright is a serial fraudster, and is certainly not “Satoshi Nakamoto”, the unknown creator of Bitcoin. This alone should lead some to suspicion of the intentions behind any cryptocurrency he leads. Fortunately, Bitcoin SV did not emerge as the victor in the spat between it and Bitcoin Cash.
Even so, Bitcoin Cash saw a significant chunk of its hash power, community, and market cap go away with Bitcoin SV. We’ll get into more detail about this below, and whether or not it represents a crippling blow for Bitcoin Cash BCH.
Why Bitcoin Cash Prices May Go Up…Or Down
We’re not sure whether Bitcoin Cash prices will go up, down, or sideways. Bitcoin Cash is one of the most contentious cryptocurrency projects operating today. There are some who call it a scam and other who call it the one true Bitcoin. We think the reality lies somewhere in between. We’ll make a Bitcoin Cash prediction at the end of this post, but first let’s look at the logic behind out Bitcoin Cash price prediction.
1) Bitcoin Cash Has Bigger Blocks.
One of the main reasons Bitcoin Cash exists at all is that Bitcoin has static block size. This might be a little technical, but it’s essential to understanding key debates within cryptocurrency. Bitcoin blocks are technically limited to 1 mb in size (even though Bitcoin features like Segregated Witness allow for more storage). Because transaction data is stored within blocks, the amount of people who can use Bitcoin is limited to the amount of data that can fit in these tiny 1 mb blocks.
The Bitcoin community was torn about whether to increase block sizes when Bitcoin became expensive and slow in 2017. The “Big Block” cohort ended up breaking away from Bitcoin, with the Bitcoin Cash hard fork. This new blockchain had 8 mb blocks, which could hold way more transaction data. These blocks were also variable in size. If a ton of transactions came through all at once, Bitcoin Cash blocks could get bigger on the fly. This led to a rapid gain in the Bitcoin Cash price, and many Bitcoin Cash predictions held that it would soon take over for Bitcoin at the top spot of the cryptocurrency markets.
Note: Bitcoin Cash blocks are only as big as they need to be, effectively, so the size is quite small in the image above. This is entirely due to low network traffic.
2) Bitcoin Cash Bigger Blocks Don’t Seem to Make Much Difference
People were skeptical when I was talking about negative adoption in 2017. This is it.#BitcoinCash fixed the issues that caused adoption to drop, but we now are facing an uphill battle to reboot it. However, make no mistake, this is how the bull comes back.
— Deadal Nix (@deadalnix) January 22, 2019
That sounds great, but did it work? Well, at first Bitcoin Cash seemed better able to handle traffic than Bitcoin. BCH transactions were faster and cheaper, and at one point it really looked like Bitcoin might collapse into a “Death Spiral”. But then Bitcoin developers found all kinds of other solutions to its problems (Segregated Witness, The Lightning Network, Batched Orders from Coinbase and other exchanges). Bitcoin transaction prices fell and speeds increased. Bitcoin Cash started to look a little bit irrelevant, at least by this metric.
3) Bitcoin Cash Has Instantly Variable Difficulty.
Another way Bitcoin Cash set out to be better than Bitcoin was with mining difficulty that could turn on a dime. Basically, mining profitability depends on how difficult it is to mine a new coin. When miners have to do more work, they use more electricity for less reward. This is a big problem in Bitcoin right now, as falling BTC prices mean that miners are losing money.
Bitcoin Cash created a new difficulty algorithm that constantly changed how hard it is to mine Bitcoin Cash. If miners started to leave the chain, the difficulty would quickly drop, making it easier to make money and drawing miners back. Bitcoin, in comparison, had a much slower method of changing difficulty. Bitcoin Cash could easily swoop in and become more profitable for miners than the larger chain. This still works this way, even today.
4) Bitcoin Cash Has Roger Ver
Remember when BTC always had extra space in the blocks so transactions were fast and basically free?
If you hate BCH, you probably don’t.#BitcoinCash
— Roger Ver (@rogerkver) January 24, 2019
Bitcoin Cash’s Roger Ver may be the single biggest asset and detriment BCH has in its camp. Ver was an early Bitcoin investor, and quickly became a Billionaire as his holding doubled in value dozens of times over. Ver is a controversial figure, sometimes behaving badly in interviews in a way that’s off-putting to critics. To some, Roger Ver wants to be the King of Bitcoin, and tried to subvert and destroy the real Bitcoin with his upstart Bitcoin Cash.
On the other hand, Roger Ver’s criticisms of Bitcoin were totally valid in 2017. Bitcoin was slow and expensive, and Bitcoin Cash’s solutions to these problems were, at least theoretically, viable. Roger Ver also has tremendous resources, apparently funding aspects of Bitcoin cash development out of pocket. He’s also a well spoken advocate for his chain. Whether you think Roger Ver is an asset or a liability depends entirely on your perspective and preference.
5) Bitcoin Cash Doesn’t Really Have a Unique Use Case in 2019
Why fourth-largest #cryptocurrency has been pushed down ? 🧐🧐
— cryptoknowmics (@cryptoknowmics) January 23, 2019
There are many other technical and political considerations we could talk about with Bitcoin Cash, but at the end of the day, we just don’t think Bitcoin Cash has a unique solution to the world’s need for digital currency. Maybe it did in 2017, but the times have changed, Bitcoin has solved many of its 2017 problems, and Bitcoin Cash seems almost…obsolete.
The Bitcoin SV hard fork was a major split for the Bitcoin Cash community. Bitcoin Cash clearly came out the victor of that conflict, but Bitcoin Cash prices suffered losses from which they have not recovered.
Cryptocurrency prices are likely to recover, and in this event money is likely to flow back into Bitcoin Cash. But does BCH truly have an argument for usefulness in 2019? We’re not convinced.
6) Other Cryptocurrencies Are Doing Better.
Not only is Bitcoin looking like the better buy for 2019, Ripple XRP is another cryptocurrency that’s proving to be far more useful than Bitcoin Cash. Though you might complain that XRP is only used by institutions, and largely centralized, the technology’s speed, affordability, and widespread adoption are characteristics that aren’t true of Bitcoin Cash.
Like Litecoin, we tend to see Bitcoin Cash as an aging and increasingly irrelevant cryptocurrency. Bitcoin Cash may turn our Bitcoin Cash prediction around with some major development, but we can’t imagine what that would be, especially with crypto/Bitcoin Cash prices as low as they are in early 2019.
Bitcoin Cash Price Forecast By Quarter 2019
While no one can say for sure how Bitcoin Cash prices will change over time, we’ll offer here our Bitcoin Cash price prediction for each quarter in 2019.
- Q1 2019 Bitcoin Cash Price Prediction: $100Bitcoin Cash doesn’t stand out in today’s market. People who are invested in Bitcoin Cash tend to be those who have owned their coins for awhile, and won’t sell simply because they’re hoping that the Bitcoin Cash price will go up soon. There aren’t a whole lot of new converts to the Bitcoin Cash family. Without a strong use case or unique solution to the world’s digital cash needs, we think Bitcoin Cash will continue to founder in Q1 2019. It may lose some investors to Bitcoin, Ripple, or some other altcoin. The price could rise in the short term, but we can’t understand why.
- Q2 2019 Bitcoin Cash Price Prediction: $200
Let’s imagine for a moment that the bulls return to the crypto markets. In a case like this, all crypto projects, however good or bad, will see fresh cash flow into them. Bitcoin Cash, still in the top 5 cryptocurrencies in the market, would surely benefit from this. We think that 2019 will be a good year for crypto prices, and that in this event Bitcoin Cash would passively benefit.
- Q3 2019 Bitcoin Cash Price Prediction: $300Bitcoin Cash would continue to benefit from increased market prices, as long as it continued to function reasonably well. Despite all of our Bitcoin Cash criticisms here, we’re not saying Bitcoin Cash doesn’t work. We’re only saying that it doesn’t have an inspiring solution to market needs. If crypto prices improve in a big way, as we think they might in 2019, Bitcoin Cash prices will follow. However, our Bitcoin Cash prediction is that BCH prices will lag behind returns from other, better projects. In this situation, crypto investors would be better off putting their funds elsewhere.
- Q4 2019 Bitcoin Cash Price Prediction: $80There it is. We believe that sooner or later, regardless of market activity, people are going to realize that Bitcoin Cash just isn’t the one true Bitcoin that it originally claimed to be. Bitcoin Cash’s original ideas were good, but they proved not to be the solutions fans hoped they’d be. In this case, long time BCH holders would start to sell their stashes, and Bitcoin Cash prices would start their great and final decline.
Is it Time to Buy Bitcoin Cash?
We don’t think so. Perhaps you know something we don’t (in which case we’d love to hear from you in the comments), but we are pretty sure that Bitcoin Cash doesn’t have a strong strategy to worldwide adoption. In the world of blockchain digital cash, there will probably be only one or two real winners. For now, Bitcoin and Ripple seem like much better answers to the needs of global consumers and institutions. Bitcoin Cash, by comparison, feels like a has-been.