Bitcoin Cash turned one-year-old a few weeks ago. Despite reaching this milestone, the altcoin struggles for traction. Commercial use of BCH has dropped off significantly, which is to be expected. It also shows that convincing people Bitcoin Cash is the real Bitcoin has become a lot more difficult.
People Stop Using Bitcoin Cash
Statistics provided by Chainalysis paint an interesting picture. It shows the commercial use of Bitcoin Cash is tapering off quickly. That is entirely to be expected, given the rough year 2018 has been for all cryptocurrencies. Overall Bitcoin payments volumes are also on the decline in spectacular fashion.
For Bitcoin Cash, these problems are rather troublesome. The altcoin has attempted to dethrone Bitcoin and come up short. This is despite gaining support from the top cryptocurrency payment processors. BitPay, GoCoin, and Coinify all introduced Bitcoin Cash payments over the past twelve months. As such, merchants can now accept both Bitcoin and BCH payments through their preferred gateway.
Unfortunately, this adoption has not resulted in the growth some people expected. Instead, BCH payments dropped by nearly 60% between March and May 2018. The same applies to Bitcoin, which noted a 73% decline in volume during the same period. Lower cryptocurrency prices make holders less eager to complete purchases. Of course, it should be noted that Bitcoin stood at a much higher peak than BCH, so it had further to fall when the value of cryptocurrency declined.
Reversing the Trend is Difficult
Despite these troublesome statistics, not everything is doom and gloom. While some experts claim Bitcoin Cash has fewer users and holders, this downward commerce trend is to be expected. Cryptocurrencies are not in the best place right now. Unrelenting bearish market pressure through most of the year forced investors and holders to rethink their positions.
One worrisome aspect is whether or not the self-professed “real Bitcoin” is running out of steam. Notorious proponent Roger Ver seems unable to get people excited about Bitcoin Cash. After the initial hype surrounding the project calmed down, things have begun to go down a slippery slope. Such growing pains are not uncommon in the cryptocurrency industry. It is possible the altcoin will come out stronger once the dust settles. Yet the reality is that Bitcoin has 10 times the market cap that Bitcoin Cash enjoys.
The bigger problem is turning this negative commerce trend around. Bitcoin and altcoins have struggled in this department for years. It seems the situation is not improving much these days. The “main” holders of Bitcoin and altcoins are usually long-term speculators. With prices now falling, spending cryptocurrency on goods and services is no longer as appealing. Until prices recover significantly, this uneasy situation will likely remain in place.
Are you a fan of Bitcoin Cash? Do you think it will reverse its downward trend? Let us know in the comments below.
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