Ever since 2017, Bitcoin and Bitcoin Cash have caused confusion to new investors. While Bitcoin was created as early as 2009, Bitcoin Cash (BCH) resulted from a hard fork that occurred in August 2017.
According to its founder, Roger Ver, BCH was created to resolve the scalability issues that Bitcoin was facing as a result of market growth. The high fees and slow transaction times made it difficult for investors to see Bitcoin as a potential global currency. However, as the market is evolving, the scalability issues seem to subside. So is Bitcoin Cash still relevant? And does it stand a chance against the king?
Before you buy bitcoin with debit card, make sure you consider all the facts listed below. We take a look at the facts to find out which cryptocurrency will offer the best profit potential for new and experienced investors.
Performance of BTC and BCH in the bear market
After a 3-year crypto winter, experienced investors have lots of historic data to refer to. This comparison can offer lots of information related to the potential growth of each cryptocurrency and reveals tendencies that occur on specific occasions.
The market bottomed out in December 2018, nearly one year after the meteoric rise of both cryptocurrencies.
- BCH bottomed out at ±$176, more than 90% below its all-time high
- BTC bottomed out at ±3200, approximately 85% below its all-time high
While the above information indicates that both cryptocurrencies experienced a similar drop in price, the interesting findings come when we look at the current prices. Nearly 20 months after bottoming out:
- BCH has experienced a 68,75% increase in price, currently sitting at $293.
- BTC has experienced a 287% increase in price, currently hovering above $11.700
The price recovery of the two cryptocurrencies hints that Bitcoin is experiencing a higher adoption rate the BCH, with the latest being stagnant for more than a year.
“Buidling” & development
Over the past 3 years, cryptocurrency has evolved as a whole, with exchanges like Binance leading in product development. At the same time, the functionality and applications of Bitcoin and Bitcoin cash have changed.
- Nowadays, there are more FIAT onramps than ever before. Bitcoin can be bought using most government-based currencies, with BCH still lacking a significant number of market pairs.
- Elisabeth Stark and the Lightning Network team are actively solving the scalability issue of Bitcoin, to allow faster and cheaper transfers. The blockchain project has already been tested and is expected to be used by all BTC transfers in the future. If you wish to see the Lightning Network in action, consider using Strike for micropayments. The app, which is still in Beta mode, makes Bitcoin payments easier than any other payment system currently available.
- After acquiring CoinMarketCap in March, Binance decided to change the logo of BCH, making it green-colored and completely different from the original Bitcoin. This change is expected to further separate the two cryptocurrencies from each other, favoring BTC as the “real” Bitcoin.
The Bitcoin Cash halving event was not highly anticipated and the price, respectively, did not grow as a result of the event. After the halving of rewards, the ecosystem experienced a massive miner “exodus” which was partially caused by the decision to automatically donate a small portion of the rewards towards the development of the BCH ecosystem (payment for developers). Overall, we can’t say that the event had a significant effect on the demand of the cryptocurrency.
Bitcoin, on the other hand, seemed to follow historical patterns, with the exception of the sharp pre-halving drop on its price. The event was heavily promoted in the media and search volumes sharply increased, topping at more than 10 times the search volume related to the previous halving event. The demand for Bitcoin increased since the event occurred, with the price hovering approximately 50% higher than the time of the reward halving.
Marketing & community growth
Over the past three years, more and more people start to realize that Bitcoin Cash does not share the elements that constitute Bitcoin as the leader in the space:
- Bitcoin is fully decentralized and has a much higher daily trading volume (liquidity) compared to Bitcoin Cash. On average, the daily trading volume of BTC is 25 times higher than that of BCH, leading to increased liquidity and more investor confidence.
- Bitcoin Cash has the upper hand when it comes to marketing, as it introduced several updates this year, and owns the Bitcoin.com domain. However, this does not seem to offer any benefits as BTC experiences a higher degree of growth through word-of-mouth advertisement and its history.
- Community insight website Lunarcrush is constantly exploring cryptocurrency trends and social media popularity. According to them and when looking at the overall social engagement, Bitcoin scores at 84/100. At the same time, Bitcoin Cash has a lower score of 57/100.
Who will be the winner of the bull market?
Based on this quick analysis it is safe to assume that Bitcoin (BTC) was, is, and will most likely continue to be a better investment option. Additionally, as we enter into a new bull market, most investors will need to acquire BTC before they proceed to altcoin investing and swing trading.
This is not to say that BCH is a bad investment. Not at all. The forked coin has been known for its sharp volatility during bull market conditions and could follow a more unstable growth pattern as compared to Bitcoin. This could become beneficial for swing traders who wish to increase their BTC position through altcoin trading.
If you are new to the exciting journey of crypto investing, it is best that you explore the background of the two popular cryptocurrencies, discover why Bitcoin is the best option for long term investors and make better decisions.