AS PREDICTED: Bitcoin Cash mining profitability adjusted - PRICES CRASHING SOON - Find out why
In one of my posts from 4 days ago I predicted that the Bitcoin cash mining profitability would adjust and eventually reach parity with that of the Bitcoin network.
Related post: Why betting on Bitcoin Cash is a really bad idea right now
Back then a lot of investors were betting on Bitcoin Cash overtaking Bitcoin’s hash power and thus they were mispricing Bitcoin cash a lot higher than they should because the difficulty adjustments would make this advantage only temporary.
This is the chart that I published 4 days ago (excuse my line making skills, I know, I’m bad at drawing :)
The actual difficulty adjustments are matching my chart very closely, if you don't mind the bad drawing skills, of course
Why I believe Bitcoin Cash prices are going to fall even more
Now that difficulties have adjusted on both chains and are getting close to parity these premature investors will realize Bitcoin cash is not overtaking Bitcoin anytime soon
Bitcoin is light years away from Bitcoin cash in network effect. It’s listed on all exchanges and used everywhere by everyone.
Segwit is here, so far there hasn’t been any problems and network congestion on the Bitcoin chain is only going to improve from now on as people begin to use Segwit addresses.
Most importantly, Bitcoin cash is not being used. In the following chart you’ll see there’s a huge disparity between the price of Bitcoin cash and the number of active addresses. Bitcoin cash should be currently priced under $100 USD based on its usage.
Don’t rush to sell your BCH
However, I don’t believe you should rush and sell you Bitcoin cash. Segwit is still young on the Bitcoin network, something could still go wrong and, should anything happen with Segwit, Bitcoin cash could explode in price overnight.
If you don’t need the money right away, keep your Bitcoin cash, grab a popcorn bag, relax and enjoy the view of the crypto landscape as these giants battle it out to become your wealth preserver of choice ;)
CHECK OUT MY PREVIOUS POSTS:
Bitcoin is mooning! Find out what’s causing this increase in price
Tell me what you think about this post in the comments below. This is not professional investment advise. I'm not your financial advisor. Only invest money you can afford to lose!
Happy crypto investing!
great one!
It will go more down. Best to invest in Litecoin
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Thank you for this article. I upvoted and followed.
I think your analysis is spot on. BTC has such a huge penetration that it is hard for BCH to advance. The biggest advantage from what I could see was the mining which appears to be dwindling. Yes the block size was a point of contention yet I think BTC is starting to address that problem.
Ultimately, BTC might end up only as a store of value....which is something BCH cannot do. That is what will help BTC to prevail.
Thanks lots, followed too. Now you have a friend watching from the sky:) regards
Thanks cryptoeagle...I can use all the help that I can get.
This seems backwards. Why would the network described in the white paper not be able to provide a store of value, yet you think current ticker BTC with Segwit and Lightning dependancy will do better?
(If anything, I can see an argument that it will be more stable when the network is used less by anyone but miners/banks and thus provide better grounds for a currency which the miners/banks would unfortunately control, but that's a contentious economic argument and not what my question is about)
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Great post! Thank you! (:
Thank you for commenting and reesteming! regards
great post , information thanks,
As usual another great post on Bitcoin Cash mining. thanks for sharing..