Blockchain Investor Analysis

Bitcoin

Bitcoin Cash

BCH
Current Price $255.71 (+1.67%)
Bitcoin Cash (BCH) is a peer-to-peer digital currency that was created as a fork of Bitcoin in mid-2017. In the years to follow, Bitcoin Cash managed to establish itself as one of the leading digital currencies for online payments.

Our Rating:

Market

Problem that it solves

Bitcoin Cash can process transactions quicker than the Bitcoin network. This results in a shorter processing time and lower transaction fees.

Customers

Individuals and businesses that want an alternative payment method to existing digital payment system.

Value creation

A business adopting Bitcoin Cash would see increased transaction speeds while spending less on the cost of processing. Additionally, it alleviates chargeback fraud losses for businesses.

Market structure

Online and bricks-and-mortar businesses that are open to new payment methods.

Market size

Potential market is anyone who wants to use a digital asset to pay for goods and services.

Regulatory risks

Digital currencies such as Bitcoin Cash have so far experienced the most favorable regulations among digital assets. Therefore, the regulatory risk for BCH is low in comparison to other cryptoassets.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Bitcoin Cash is a fork of Bitcoin, so it is built on the battle-tested Bitcoin blockchain.

Lead time advantage

Since Bitcoin Cash is a fork of the original Bitcoin project, it’s tough to say that it’s ahead of the competition. However, it is one of the primary players who provide fast and cheap transactions on the blockchain.

Contacts and networks

With well-heeled early bitcoin adopter Roger Ver and influencial bitcoin miner Jihan Wu in its camp, it’s difficult to imaging Bitcoin Cash having trouble making inroads with anyone.

Average Competitive Advantage Score

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Management Team

Entrepreneurial Team

Roger Ver and Jihan Wu are leading figures behind Bitcoin Cash, which means BCH has two of the more well-known players in the industry in its camp.

Industry/technical experience

Even though Bitcoin Cash has only been around for a few years, there are many on the team who were there at Bitcoin’s beginning.

Integrity

Bitcoin Cash is one of the most controversial coins in the top ten digital assets by market capitalization. When it launched, the BCH community and BCH-backer Bitcoin.com went on a PR crusade to brand BCH as the real Bitcoin despite the fact that the market clearly decided that Bitcoin (BTC) is Bitcoin. Among other controversies, Ver and Wu tried to impose a 12.5% tax on miners that would go to protocol development in January 2020, which caused an uproar in a community primarly composed of individuals with Libertarian views.

Average Management Team Score

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Token Mechanics

Token required

Bitcoin Cash exists to be a peer-to-peer digital cash payment network that can be used to perform quick and cheap transactions. Therefore, it needs the BCH token.

Value added

While Bitcoin Cash is trying to improve the speed and cost of Bitcoin, there are many coins on the market attempting to do the same.

Decentralized

The Bitcoin Cash mining community is dominated by a few large players that have the ability to roll back the blockchain. BCH, therefore, has a low level of decentralization compared to the likes of Bitcoin or Ethereum.

Token supply

Bitcoin Cash has a maximum supply of 21 million, so the value of the coin cannot be diluted with new supply in the future.

Public exchange

Bitcoin Cash is available on a wide variety of exchanges, including Binance, Coinbase, CoinEx, and Kraken.

MVP

The Bitcoin Cash blockchain has been successfully up-and-running since 2017.

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User Adoption

Technical difficulty

Bitcoin Cash is a peer-to-peer digital currency. Anyone who has a basic understanding of cryptocurrencies can understand the concept of Bitcoin Cash.

Halo Effect

Even though Bitcoin Cash is not as well recognized as Bitcoin, it is still one of the leading digital assets in the market. Moreover, BCH has secured a number of notable partnerships.

Buzz

The Bitcoin Cash community is very active and vocal. However, Bitcoin Cash's buzz pales in comparison to Bitcoin or Ethereum's.

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Overall Score

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Blockchain Investor Analysis

Bitcoin Cash is arguably one of the most controversial digital currency projects as it was created through a contentious fork of the Bitcoin Network. However, so far, it has stood the test of time and its community has successfully managed to spread the message of BCH as a peer-to-peer payment method, which has sparked BCH adoption across merchants around the globe.

However, Bitcoin Cash is not Bitcoin, and the fork has not managed to step out of Bitcoin's shadow since it was launched three years ago. As a result, our Investor Scorecard rating equates to 3.9.

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