Why Bitcoin Cash is at a Standstill
After Coinbase registered Bitcoin Cash, the Altcoin saw a climb well over $3,500 on the market before slowly losing its value and dropping down below $1,000 in value. While the digital coin continues to vary in price, it remains sluggish.
Stuck in Place
As of now, Bitcoin Cash is valued at anywhere between $750 and $800. Although the value itself is low, it remains much higher than BCH’s original launch gains. So why has Bitcoin Cash come to a standstill at price? Experts attribute three reasons to the current immobile currency.
BCH implemented a new algorithm to regulate the difficulty levels of the currency’s block and has resulted in regulated mining efforts, although mining blocks as an operation are spiraling down. While Bitcoin Cash does see profits from any mining effort, its gains have always been overshadowed by Bitcoin and its successful mining rates. BHC has consistently mined by collaborated resources from miners involved with Bitmain and some consider this to be a more selfish nature of mining, especially given the less-favored reputation of BTH as a result of Bitmain.
Bitcoin and Bitcoin Cash has always seen reliable and trustworthy trades between each other, although recently the dynamic between both currencies has declined, resulting in fewer trades. While the currencies do remain tradeable and continue to trade against one another, neither currency is competing for the number 1 value. As trading with Tether prospers, BCH trading against the currency is proving to be more profitable, with customers jumping at any chance to purchase BHC before their value declines any further.
Bitcoin Cash is still struggling to find its spotlight among alternative coins. The currency is eager on upping its value and reputation by any means although it has been seeing success as a payment method. The currency’s declining value is not generating enough potential boosts to its price, placing the coin in a standstill as opposed to a common scenario of holding off until further gains.
The BHC platform is also seeing a decline in trading activity, with transaction rates rapidly declining to new lows in just one day. Bitcoin is also cutting down on the fees required for any transaction, drawing in even more clients which, in return, affects BHC and its user traffic. As costs lower, Bitcoin is providing a more inviting platform.