Bitcoin Cash (BCH), Cryptocurrency, Hard Forks–Hash wars. Hard forks. Satoshi’s legacy. The list of complications and headaches for the industry of cryptocurrency continues to mount for the fourth largest cryptocurrency. Since breaking off from Bitcoin Core (BTC) in August 2017, BCH has been on the instigating end of a number of controversies.
In December 2017, the coin became the focal point for allegations of insider trading when the BCH/USD pairing was added to Coinbase, leading the price to fluctuate wildly over the course of several days.
Roger Ver, a long time figure in the industry of cryptocurrency and one of the figureheads for BCH, has continually stirred the pot of contention between BTC and BCH supporters, making claims that Bitcoin Cash is the more legitimate of the two and promoting his agenda through popular crypto wallet Blockchain.info as well as taking over the Bitcoin.com website.
Now, Bitcoin Cash has again been at the center of an ongoing controversy for crypto, as the ramifications of the “hash war” waging over the recent fork of BCH continues to have broad implications for the industry. Initially, the price rally leading up to Nov. 15th’s hard fork for BCH appeared to be a win for the industry, as the coin’s price jumped over 20 percent with investor anticipation over the minting of new coins. The rest of the market cap also saw green with the renewed interest in crypto investing, with XRP paving the way in terms of gains and overtaking Ethereum’s long-held position as the second largest currency.
However, the fallout in valuation since the fork has been devastating for both investors and the image of cryptocurrency. While some analysts saw the benefit of Bitcoin Cash drawing investment dollars and interest into the space of cryptocurrency, others bemoaned the effects of ongoing contentious hard forks–particularly one with the vitriol surrounding the BCH split.
Craig Wright, who has gone so far as to claim being the original Satoshi Nakamoto behind Bitcoin, has thrown his weight behind Bitcoin SV while simultaneously denouncing the other half of the fork, Bitcoin ABC. Supporters of Bitcoin ABC are largely doing the same in retaliation, creating the predictable outcome of a community and investment base that is quickly losing trust and confidence in the asset class.
As Bitcoin, Bitcoin Cash and nearly all altcoins have dropped precipitously throughout 2018, the lack of patience for investors to stomach more upset is becoming evident, and no more apparent than the outpouring of capital following BCH’s fork. Investors pumped the price of the coin in the week leading up to the split, thereby hoping to capitalize on both the appreciated price from anticipation as well as receiving free coins following the fork. However, the house of cards collapsed a day early, as investors rushed to sell faster than the next and capitalize on the entirely speculative driven gains.
BCH did not build value out of support or recognition for its use as a currency or the benefits of the fork. Instead to the coin was built on stilts of greed and the tiring pattern of forks leading to price pumps and subsequent falls. The severe backlash in valuation, for the entire industry, is revealing both investor fatigue and general disgust with how price valuation in the space has been handled–a feature that no longer seems to correlate with any legitimacy and is instead entirely drive by speculative market forces.