Bitcoin Cash (BCH) owners have no reason to celebrate, despite 46% this year in US dollars. A year ago, altcoin was the third largest company by market value. It now risks falling out of the top ten after being overtaken by other cryptocurrencies, including Litecoin (LTC) and Chainlink’s LINK.
After three years of continuous devaluation, on February 22, BCH finally traded for less than 0.01 Bitcoin (BTC). This is not only psychological support but also a 96.5% devaluation compared to the maximum closing level of 0.285 BTC on August 2, 2017.
While the combined hash rate of both cryptocurrencies was fairly comparable at the time, it has since turned into a one-sided battle: the dominance of BTC hashing has now exceeded 98% compared to BCH and Bitcoin SV (BSV) combined.
As shown above, the BCH hash rate is currently 1% of 150 BTC per second. However, BCH officials argue that a 10-block checkpoint system of Bitcoin Cash protects the blockchain from hostile reorganizations, so a lower hash rate is required.
However, while the risks of “deep reorganization” are minimized, stopping points come with trade-offs, especially with the increased risk of splitting the consensus chain, according to BitMex.
The addition of checkpoints has also led to criticism from Bitcoin advocates who argue that the decision threatens the decentralization of the Bitcoin Cash network.
Active Litecoin addresses outperform Bitcoin Cash
Daily active addresses are an important account in the chain, although they are often overrated when considering lower transaction costs and the trade-offs between network security. However, it seems reasonable to compare BCH with Litecoin and Dash, as the average fee for the three networks is less than $ 0.05.
As the data shows, Litecoin currently has twice as many active Bitcoin Cash addresses per day. Thus, the activity on the Bitcoin Cash network is very similar to that of Dash, an alternative currency with a market value of $ 2.2 billion.
Additionally, Cointelegraph Markets Pro’s VORTECS accounts began to decline on February 18th, just days before the price started to fall.
The VORTECS score, excluding Cointelegraph, is a mathematical comparison of historical and current market conditions drawn from multiple data points, including market sentiment, trading volume, recent price movements, and Twitter activity.
The valuation fell below 50 and Bitcoin Cash fell four days later, losing the important support level of $ 670.