Since finding a price bottom in December, Bitcoin Cash is up over 110%. Just a few weeks after that price bottom hit, Bitcoin Jesus himself, Roger Ver, did an interview with Forbes.com. In the interview, he predicts that Bitcoin Cash will eventually overtake Bitcoin in terms of market capitalization. Let’s explore a little bit more about Bitcoin Cash, why it’s rising to the top and the challenges the project faces moving forward.
Bitcoin Cash in the Top 5
At the time of this writing, Bitcoin Cash’s market capitalization sits at nearly $6.8 billion USD. It’s now the fourth most viable cryptocurrency in the world. With over 18.2 million BCH coins in circulation right now, that puts the value of each coin at nearly $400 USD. Lately, Bitcoin Cash has been flip-flopping with Bitcoin SV. Both projects represent a fork (aka a variation) of the original Bitcoin’s code. Proponents of the latter project say that BSV operates on a level that is closer to the original mission and vision of Bitcoin’s creator, Satoshi Nakamoto.
As noted before at BTCGG, Calvin Ayre, the founder of gambling site Bodog.com, is a big fan of Bitcoin SV as the one true Bitcoin that should rule the world. Yet, Roger Ver (CEO of Bitcoin.com) says that Bitcoin Cash is going to reign above them all.
The Reason Roger Ver Believes in BCH
When asked in his recent Forbes interview how Bitcoin Cash is serving the world, Ver says Bitcoin Cash allows individuals to send and receive money in any amount, anywhere and nearly for free. No government controls or permission required. He used to say the same thing about Bitcoin as one of the project’s earliest adopters, but he believes Bitcoin is no longer king.
Ver’s stance is based partly on the fact that he’s heavily financially invested in Bitcoin Cash. Of course he wants the project to succeed. At the end of the day he’s a venture capitalist that wants to keep making money. But there’s another reason Ver believes in Bitcoin Cash over Bitcoin and all other altcoins. It’s that the BCH blockchain can facilitate cheaper transactions at a higher volume than the Bitcoin network. Ver believes that eventually more and more people will come to BCH realizing this fact.
Other Reasons Bitcoin Cash Is Booming
There are three other big time developments in the world of Bitcoin Cash affecting its current rise in price. One is a major deal in place to have Bitcoin.com’s Bitcoin Cash Wallet pre-installed on all HTC phones. The second big development is the fact that Bitcoin Cash is the only network readily able to pay out investment dividends to investors on the blockchain anonymously. The original Bitcoin network can’t do that. This development is big for the long term because it welcomes institutional investing.
While both of these revelations are positive, there is actually one potentially negative development that might actually be boosting the price of Bitcoin Cash coins in the short term.
The Bitcoin Cash Mining Tax
A group of respected developers are putting forth the idea of charging a 6% tax on Bitcoin Cash mining profits as a way of generating a basic income for developers. The problem with this, as Ver and other opponents point out, is that there is no official structure or set of policies in place for how those funds should be collected or distributed. The original document detailing the proposed tax recommend using an old-school Chinese philosophy known as the non-debate theory originally brought forth by a well-known communist party Deng Xiao Ping. The philosophy holds that the more time people spend arguing, the less time they have to get things done. The whole idea is to push things forward and offer no opportunity for debate.
Many crypto terrorists counter the philosophy saying that a communist approach tarnishes the whole point of putting currencies on the blockchain. To give people freedom.
So why would such a controversy actually push the Bitcoin Cash price higher? Because a vote on the issue will take place in the middle of May, and groups who don’t like the idea of a mining tax on the Bitcoin Cash network are threatening to create yet another fork of the Bitcoin code. If a fork happens, BCH holders would be able to hold onto their coins and claim the coins of whatever newly-forked project is birthed. In short, investors would win twice.
Will Bitcoin Cash actually surpass Bitcoin in value someday? Only time will tell. But many investors are betting Roger Ver and other BCH evangelists will push it to the top.