Bitcoin Cash has suffered a notable decline over the last few days, losing more than 10% of its value as the digital currency struggles with numerous challenges.
The hard fork of the original Bitcoin has been falling in value during a time where the broader digital currency market is experiencing less severe price fluctuations.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin Cash fell to as little as $1,167.68 at 08:54 UTC (roughly 5 a.m. EST) today, representing a 10.6% decrease from the price of $1,306.95 that it reached on Sunday, according to CoinMarketCap.
Broader Market’s Modest Volatility
In contrast, the broader digital currency market lost only 5.7% of its value over roughly the same time frame, dropping from $392.2 billion to $369.8 billion, additional CoinMarketCap figures show.
At the time of this writing, many cryptocurrencies were in the red, but they were down only slightly.
“It’s all standard noise,” said Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, emphasizing this asset class’s characteristic volatility.
Jeff Koyen, CEO of 360 Blockchain USA, offered a similar perspective.
“The crypto-wide headwinds feel typical to me,” he stated.
“There’s some news here, some news there — but nothing earth-shattering that I’ve noticed.”
‘One Of The Most Controversial Coins’
Bitcoin Cash is apparently having a different experience, and Koyen spoke to this, shedding some light on the digital currency’s price fluctuations:
“Second perhaps to Ripple, Bitcoin Cash is one of the most controversial coins out there. For its fans and supporters, it’s not enough to see it trade at a higher price.”
“They insist on calling BCH the ‘real bitcoin’ — not just a hard fork. This sows confusion among crypto newcomers and really pisses off a lot of the veterans. As a result, it’s more volatile than most.”
Recent Mining Proposal
Marshall Swatt, founder & president of Swatt Exchange, spoke to a different matter, noting a recent meeting where Bitcoin Cash miners went over a proposal that would provide developers with a fraction of block rewards to fund varying initiatives.
“Bitcoin cash’s miners met recently to discuss whether to reallocate some portion of mining rewards to developers,” he stated.
“That could be a sign that BCH is struggling to gain much traction or grow its engineering and compete among all the other offerings.”
Bitcoin Cash’s Success
In spite of its challenges, Bitcoin Cash has succeeded where many other digital currencies have failed.
Developers have created several forks of the original Bitcoin, and many of them have either struggled to gain some traction or faded from relevance.
More than nine months after coming in to existence in August 2017, Bitcoin Cash is still a Top 10 digital currency by market value, currently holding the number four spot on CoinMarketCap.
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.