The only hard fork that underperformed Bitcoin this year is Bitcoin Cash according to the data from Messari. BCH is only up 9% year to date while most alternate cryptocurrencies rallied over the past few months as reported in the previous Bitcoin Cash news.
Bitcoin Cash-the the only hard fork around today that started trading back in 2017, is now left behind. Bitcoin Cash started underperforming bitcoin back in May but two months were more than enough time for the forked cryptocurrency to underperform the leading crypto asset by 18% so far this year. It’s usual for altcoins to outperform bitcoin during the bullish market cycles but altcoins with low or medium market capitalizations often experience high volatility compared to Bitcoin which could yield higher returns if the bitcoin price increases as well.
Bitcoin Cash, on the other hand, experienced more volatility compression compared to other projects especially Bitcoin SV which has a market capitalization close to Bitcoin Cash, according to Dan Koehler, the liquidity manager at OKCoin:
“Bitcoin gold and bitcoin diamond remain in a much smaller market cap bucket and thus could be experiencing higher volatility and returns as a result.”
A more fundamental possible explanation for Bitcoin Cash’s lackluster performance is that the ecosystem of the protocol including developers, entrepreneurs, and investors, has already unraveled according to Zach Resnik, the managing partner at Unbounded Capital which is a BSV fund. Bitcoin underperformed other forks such as Bitcoin Gold and Bitcoin diamond is not quite surprising because of their high volatility that is characteristic. Regardless of the reasons, Bitcoin Satoshi Vision, Bitcoin Gold, and Bitcoin diamond have all outperformed bitcoin by more than 40% this year.
As per the latest reports, The BitMEX CEO Arthur Hayes, as the leader of one of the biggest derivatives exchanges out there, once again slammed a cryptocurrency calling it a shitcoin, and this time it was Bitcoin Cash. This is not the first time that Hayes refers to a cryptocurrency that is not Bitcoin, a shitcoin. Back in 2018, the CEO of the platform even called Ether a double-digit shitcoin referring to the parabolic market increase in 2017. He also commented on the latest bitcoin drop in price by mentioning that there is a growing correlation between the legacy markets and Bitcoin as a number one cryptocurrency.
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