Can BCH compete in the crypto world?

That’s one big question haunting the internet these days. We’ve already had some time now to get used with the new coin causing waves of both excitement and concern in the crypto world – Bitcoin Cash. We were all able to do our share of research and try to find accurate forecasts in terms of how will BCH compete with the other coins. First, let’s talk about mining, as this is an important factor when trying to assess the coin value and profitability. According to coindesk and other major crypto news sites, data shows that even if BCH seems less profitable for mining right now, there is still a vast part of the initial BTC network which chose to earn less and direct some of their computer power toward BCH. Although there just a few mining operations handling BCH (such as ViaBTC), there is still the question as to what drives these key players to focus their efforts on the new coin. Some believe the reason to be of a political or rather ideological nature, meaning a pure devotion to bigger blocks or simply the concept of defeating the odds and giving credit to a new rising star in the crypto world. How profitable is it though? In order to establish this, one had to consider three main factors: cost, difficulty in mining and rewards.

Currently these are definitely challenging, but there are signs things might improve concerning how easy the coin is to mine, right now several blocks per hour can be mined. The price doesn’t seem so motivating yet either, since it’s only 6% of the BTC price, but many major voices do suggest big boosts might arise in the near future, not easy to foresee how big and for how long. Mining profitability depends a lot on users too, long term value is achieved when both individual consumers and big businesses choose to use the coin, the more users, the more value is to be achieved. And it seems BCH is on the right path, as it displayed a fast progress since just a few weeks since its inception. As far as nodes not working properly, there were some concerns vividly expressed after the fork, but it seemed the process has been pretty smooth so far, and people are not complaining. If you take a look on all the main forums and community spaces, users and miners are becoming more and more confident about BCH. This is a good test when it comes to the 8MB blocks comparing to the 2mb proposed by BTC segwit 2. BCH promises to be faster and easier in terms of transactions speed and security, so far reaching pretty solid ground, we will have to keep observing the coin progress. In the overall Segwit – Segwit2 context, BCH appeared to be more of an experimental way of applying new technology, different from the one proposed by Segwit 2 with the 2MB, but it’s now more than just that, it is building up a stand alone technology with its own path to follow, and its own passionate miners and investors.

The reality is that BTC and BCH will probably affect each other on long term. Segwit 2 will affect BTC price and its overall evolution, and maybe even Bitcoin Cash price. The 2 coins are engaged in a form of brotherly rivalry, but also forcing each other to evolve and become better for users. And we’ll be watching them, hoping to see their rivalry will lead to a better crypto world.