A few hours ago, Brian Kelly the founder of BKCM made an interesting statement about Bitcoin cash on CNBC. To quote him, “Bitcoin cash has been left for dead. Maybe it’s almost dead but it’s not dead yet.” While he went ahead to say that Bitcoin cash will rebound, I still find it interesting that people believe that bitcoin cash is dead or dying? If anything, Bitcoin cash could actually emerge as the true bitcoin. Here’s why.
Well, the reason why bitcoin gained traction in the first place is because it was taunted a low-cost global transaction currency, which was independent of the mainstream financial system. Has it lived to that standard? Absolutely not! Bitcoin has some of the highest transaction fees in the crypto market. Until it fully adopts the lightning network, things will remain this way. This explains why there has been an explosion of altcoins that have eaten into its market. The same cannot be said of Bitcoin cash. Bitcoin cash has some of the lowest transaction costs in the market. That’s why it has been adopted by several merchant platforms that aim to use crypto in the mass market. Surely, there is no way such a crypto can be dead, or dying, right?
Secondly, bitcoin was first described as a “peer to peer electronic cash system.” That’s what it was meant to be. However, as its fees increased, and scalability became an issue, the story changed. We now see media people defining bitcoin as “digital gold.” Was Satoshi Nakamoto creating digital gold? I think not! He was creating a digital currency, and to a large extent that’s bitcoin cash. Bitcoin cash has low transaction fees, is fast, and very scalable as the number of transactions increase. Now that’s a currency! As cryptocurrency goes mainstream, you can expect the value of this crypto to keep going up.
And even if one was to look at it from the perspective of price movements during the bear market, was bitcoin cash really that big of a loser, at least when compared to the rest of the market? The answer is a big NO! There are many crypto projects that have lost a good chunk of their value, but are still taunted as the future of blockchain. Some few examples are Ripple (XRP), Cardano (Ada) and IOTA (MIOTA). Ripple literally crashed from over $3 to lows of $0.48, yet no one thinks it’s dead. Therefore, there is absolutely no reason for anyone to believe that Bitcoin cash is dead due to its drop to a low of around $600 – $800. It’s simply in line with the recent bearish trend in the entire market.
As a matter of fact, this should be the best time to stock up on Bitcoin cash. Kelly is right that bitcoin cash is primed for a potential breakout, if volumes continue to increase. Once the market rebounds, and bitcoin cash continues to get adopted, expect it to close 2018 above $2000.