How Bitcoin Cash Dethroned Ethereum to Become the Second Priciest Cryptocurrency


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Ethereum opened the year 2018 at $755 as against $2,534 for Bitcoin Cash. For many market watchers, this was nothing but a fluke. Apparently, they were all wrong.

Four months into the year, Bitcoin Cash has shown a resilience that makes it stand out as the second priciest cryptocurrency. As at midday trades of April 9, 2018, ETH was sold for $407 while BCH was going for $670.


Bitcoin Cash Trade Movement(Coinmarketcap)


Ethereum Trade Movement(Coinmarketcap)

The Major Drivers

It is important to identify the major drivers that propped up Bitcoin Cash to dethrone Ethereum in the course of the last four months:

Adoption by Exchanges

As the year 2017 drew to a close, many communities hosted by exchanges saw the stability of Bitcoin Cash as a major selling point. In essence, exchanges like Coinbase, attracted users’ backlash as the community demanded the adoption of BCH as a default payment option. On other platforms like Spectrocoin and Binance, BCH enjoys a free rein.

Adopting any currency as a default payment option gives it a big advantage. Demand for its use will increase alongside the perception of its value. As the world’s most popular exchange gave a hint of listening to users’ request, the fortunes of BCH soared.

Its Low Fees

BCH was forked from Bitcoin, and this gives it the advantage of integration on the Bitcoin Blockchain. What this means is that anyone with Bitcoin infrastructure only needs to add a few plugins to make Bitcoin Cash functional.

Merchants saw that BCH could expedite their Bitcoin processing and this was a cost-saving observation. Low fees are a major attraction across the globe, and Bitcoin lost market share to BCH as a result.

Faster Processing Times

The processing times for Bitcoin Cash transactions are better than that of Bitcoin on a 3:1 basis. Compared with Ethereum, While Bitcoin Cash handles 61 transactions per second, Ethereum handles a maximum of 15 transactions per second.

In a world where time is treasured, the rate of processing of transactions matters a lot. Bitcoin Cash has leveraged on this to cut into Ethereum and Bitcoin market share.

Although none of the figures can be said to be cast in stone, it is expected that with ongoing process improvements, the TPS rate will be improved upon.


Security

Although the Ethereum network is rated highly in the Blockchain security world, Bitcoin Cash implementation of improved security with the innovative SigHash algorithm is notable.

As there are no loopholes presently known in the Bitcoin Cash Segwit updates, the user community is elated to trade this coin.


Decentralized Development

Ethereum has a problem with network access that gives preference to high stakers on the network. In other words, anyone who has a higher proof of stake gets to process transactions before others. On the Bitcoin Cash network, this limitation does not exist.

As the plethora of ICOs came to the market over the past year, ETH network soared in user numbers, and this led to clogging on the network.

In the practical sense of the word, Bitcoin Cash offered users a better user experience than the Ethereum network.For crypto traders, it also means that they could have their transactions finalized faster with Bitcoin Cash than Ethereum.


Going Forward

What the future holds for Bitcoin Cash might not be easily foreseen. However, it is clear that the development team is looking at ways to improve its processes having adopted decentralized development. Ethereum, on the other hand, has to work its delivery in order to stay relevant and enhance its scalability.

As at today, Bitcoin Cash reigns supreme as the second priciest cryptocurrency.




Gb Adolph Obasogie is a Chartered Accountant and a top-rated cryptocurrency analyst. He is on twitter @gbaobasogie

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