For the first time in history, the price of Bitcoin Cash (BCH) has fallen below Ethereum (ETH).
According to Coinmarketcap, the price of Ethreum is $86.27 and Bitcoin Cash around $2.5 less at $83.73. The circulating supply of ETH (103.7 Million), however, is almost 6 times more than that of BCH (17.5 Million).
Both Ethereum and Bitcoin Cash have lost their long-standing position in market capitalization. Ethereum lost its second position to XRP and Bitcoin Cash lost its 4th position to Stellar, Tether EOS and even BSV at a point in time. Currently Ethereum stands in the third position with a market cap of $8.9 Billion whereas Bitcoin Cash at the 7th position at a market cap of $1.46 Billion.
Ethereum being the lead smart contract platform has lost 94% of its value from an all-time high price. That doesn’t sound as bad when you consider BCH which has lost 98% of its value since the all-time high. To give some context, for an asset to lose 98% of its value, it has to first drop 95% and then again drop 60% in value.
The Death Spiral Fork
Ever since the hardfork in November BCH has gone on a death spiral losing over 81% of its value since. It can be argued that the actual price of Bitcoin Cash is the sum of BCH and BSV, but just like it doesn’t make sense to consider all the forks of Bitcoin when calculating its price, the price of BCH will be independent of BSV as it is a separate Cryptocurrency now.
Bitcoin SV is now the 9th largest Cryptocurrency with a market cap of $1.3 Billion. Earlier this month BSV even briefly surpassed BCH to occupy the 5th position on Coinmarketcap.
Although BCH has lost a lot of value, the holders of BCH assuming they received the forked tokens, they would not have lost that much of money as they would also hold BSV tokens. But some of the exchanges and wallets are yet to credit their users with BSV tokens.
Thank you for reading the article. Wishing you a very Happy New Year from team Blockmanity 🙂
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