The Bitcoin Cash scandal
In any real world business situation, the founders of bitcoin cash would have been sued by the owners of bitcoin for copying the name and the branding of the original bitcoin, but In the unregulated playing field of cryptocurrencies, anything goes. Bitcoin cash is seen by some as a symbol of manipulation and corruption in the industry.
The project is a “hard fork” of Bitcoin, and its creators have packaged it as a lighter version, faster with lower fees. Its apparent goal is to one day become the cryptocurrency used in daily consumer transactions.
Since the beginning, Bitcoin Cash has always been looked at with significant scepticism, by much of the community and there are several clear red flags that every investor must be aware of before deciding to invest.
Firstly, whilst many may see the only thing going for the project is its name and association with Bitcoin, most see it as an unethical project piggy-backing off the success of another brand, and will always overshadow its legitimacy.
Bitcoin Cash’s main selling point has always been faster transaction speeds at a lower cost. With so many faster and lower transaction coins on the market, for example Stellar and Nano, its becoming increasingly unclear why Bitcoin cash would be the currency of choice. With the introduction of Bitcoin’s lightning network, there will be even less justification for Bitcoin Cash’s existence, and with a development team of just two fulltime developers, there is little reason to expect any future upgrades.
Over 50% of nodes are running on Chinese servers, raising fears of centralisation. Having most servers concentrated in China leaves them open to malicious attacks and greatly exposes the whole project to potential government political suppression.
The project’s image has suffered due to it being labelled a pump and dump coin linked with numerous scandals. Most prominent of which is the Coinbase insider trading scandal and alleged collusion with Roger Ver. Continued negative publicity could further dent investor sentiment.
The leadership of Bitcoin Cash is often cited as a major concern – with the main names involved being Craig Wright, Calvin Ayre, Wu Jihan, and Roger Ver. All are well-known players in the cryptocurrency industry – but all have murky backgrounds. The most high-profile in this project, Roger Ver, also infamously spent 10 months in jail for selling explosives over ebay.
Not to be left out, Craig Wright once fraudulently claimed he was Satoshi Nakamoto and Wu Jihan is a crypto mining magnate who was known to run dangerous “black hat” software that threatened other miners. That being said, many successful founders have had run ins with the law, and is no indication of the final success of a project.
Being one of the most disliked projects in all of the cryptocurrency space, with questionable future use cases, and an unjustifiably high valuation, the long-term prospects of bitcoin cash are increasingly unclear.