Crypto Bear Market Hammers Bitcoin Cash
This year’s Bear market in cryptocurrencies has really punished investors who bought Bitcoin (BTC) at the height of cryptomania last year. But, losses have been even more painful for those who invested in promising rival BCH.
Bitcoin Cash (BCH), an offshoot of Bitcoin that launched on 1 August 2017 moves independently of itBcoin itself. While Bitcoin has fallen 67% from its record intra-day high of 20,089 in December, Bitcoin Cash is down a crushing 88% from its peak of 4,355.62.
Friday evening, it traded at around 533.
Currently, BTH-USD is trading at 521.50, -2.48, or -0.4733%, as of 3:35a BST, the market is open
Most all of the other coins have also plummeted in value, but the under-performance of Bitcoin Cash is notable because it touches on a bigger theme: whether virtual currencies can really become a means of payment that would supplant traditional money.
Supporters of Bitcoin Cash conceived it as a way to fix problems that they believed were impeding bitcoin from becoming a mainstream payment tool, akin to PayPal (NYSE:PYPL) or Visa (NYSE:V).
There is still a lively debate over whether Bitcoin is any good as a medium of exchange. Many Bitcoin holders view it as a hedge against the collapse of government-backed currencies, but do not often use it to pay for things.
The history of Bitcoin Cash
After waging an unsuccessful campaign to change Bitcoin from within, the rebels broke off and created Bitcoin Cash, in a so-called fork that bitterly split the virtual-currency community. The underlying technology of the new cryptocurrency was almost identical to that of Bitcoin, except for tweaks aimed at speeding up transactions and lowering fees.
One year later, some research suggests the breakaway coin has not lived up to its promises.
A study of activity by major cryptocurrency payment processors, which help businesses accept payments in crypto found that just $3.8-M worth of payments were made in Bitcoin Cash in May. That is down from $10.5-M in March.
Payments in Bitcoin are also down too.
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