Following the Bitcoin hard fork, we now have a new contender vying to be one of the top cryptocurrencies on the market. Although it’s young, Bitcoin Cash (BCH) controls the third-highest market share of all cryptocurrencies, with a $7.42-billion market cap, according to CoinMarketCap (as of this writing). That bodes well for Bitcoin Cash potential.
While it’s still a good ways short of the $21.08-billion market cap of Ethereum (ETH) and the $45.43-billion cap of Bitcoin, third place isn’t bad for one of the youngest cryptocurrencies out there. It was even enough to unseat former third-place-holder Ripple (XRP), which has been garnering a lot of hype these days. But does its meteoric rise mean that in the ETH vs. BCH race, Bitcoin Cash has the ability to overtake the second-place spot?
That’s a very interesting notion, but, ultimately, I believe that Ethereum will maintain the second-highest market cap, and might even dethrone Bitcoin as number one, before it would be beat out by BCH.
The thing is, as much as the hype over the Bitcoin Cash potential is surging right now, I do believe that it is more an effect of the newness of the cryptocurrency and not necessarily indicative of investor confidence.
When any company—or in this case, online currency—hits the market, obviously the novelty of it is bound to create a lot of interested investors. Alongside those interested investors come the short players and day traders who are looking for a quick buck.
As a result, whenever something is launched, we usually see pretty wild activity that is not whatsoever indicative of future performances.
A great example would be Snap Inc (NYSE:SNAP), which made huge gains in its first day on the market, before performing poorly for the next several months straight.
Bitcoin Cash Potential
Right now, I believe that Ethereum prices are bound to shoot up, and are backed up by quite a few resources that BCH lacks, which makes all the difference in the Ethereum vs. Bitcoin Cash battle.
(Data source: “CryptoCurrency Market Capitalizations,” CoinMarketCap, last accessed August 3, 2017.)
For instance, ETH is looking to experiment and eventually switch over to a new way to mine its coins. Instead of the proof-of-work system, it is looking to implement a proof-of-stake system. I won’t bore you with the details, but the long and short of it is that the new system could be much faster, more efficient, and safer compared to the old system. If ETH does this right, expect the Ethereum price prediction to soar.
In fact, my Ethereum price prediction is that I believe that the virtual coin will be valued over $300.00 by the end of 2017, representing solid gains from its current position at about $224.00.
My Bitcoin Cash prediction, however, is harder for me to see. Impossible, even. Because right now we’re in the early stages, when massive swings will come and go, and we won’t be able to accurately predict the trajectory of BCH until that smoke clears. If it ends up being overvalued, a crash will be in the cards.
If BCH ends up undervalued, it will start gaining.
If it has indeed tapered off after the initial few days of excitement, I expect it to have a very similar growth chart to that of Bitcoin.
Conclusion on ETH vs. BCH
The ironic thing here is that ETH had to fend off a challenge of its own not too long ago, when a similar ideological split among the troops resulted in the creation of the spin-off Ethereum Classic (ETC).
In that situation, ETH and ETC basically followed similar trajectories in terms of growth and losses, which is where I ultimately expect Bitcoin Cash to end up.
For those interested in an Ethereum vs. Bitcoin Cash grudge match, I don’t really see one as being an adequate rival of the other. Bitcoin Cash, much like Ethereum Classic, will be seen as a secondary spin-off from the real deal. At least, that will be the story until BCH finds a way to differentiate itself from its older sibling.
Ethereum, on the other hand, is a prized cryptocurrency that many believe has the potential to challenge BTC in the future. ETH is a strongly built platform with a whiz kid of a creator who many tech luminaries respect. Couple that with innovative ideas, and you end up with one of the most exciting cryptocurrencies out there at the moment.
BCH, on the other hand, has really only one main claim to fame: it came from Bitcoin. Other than that, until we start to see real innovations or some other new development from BCH, there’s not a whole lot that makes the coin attractive, other than it being formerly tied to Bitcoin.
Long story short on Ethereum vs. Bitcoin Cash: if you’re a day trader or want to make a quick buck, BCH may still be in the early-enough stages that volatile swings can be taken advantage of and make you a lot of money fast. But, if you’re more of a buy-and-hold type, ETH might be the way to go.