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BitcoinBusiness & Finance

‘Bitcoin Jesus’ Struggling to Win Supporters Amid BTC and BCH Decline

World's first investor in Bitcoin startups is hoping for a Bitcoin second coming

Roger Ver, who is the world’s first investor in Bitcoin startups, including , BitPay, Kraken and Purse.io is facing a hard time convincing even the most staunch supporters about the re-rise of Bitcoin and it’s derivative, Bitcoin Cash.

Ver, the digital currency advocate who is also known as ‘Bitcoin Jesus’, believes that the world’s biggest cryptocurrency, bitcoin, will make a swift recovery and re-gain it’s lost worth and value. Its supposed ‘second coming’, if taking place, is yet to show signs of materializing.

While the offset of the digital coin, Bitcoin Cash is also facing a harsh dip. It is barely being used in trade.

Since mid July having peaked, bitcoin has plummeted ever since and has not seen many greens. Along with the leading cryptocurrency, others have suffered the same fate. Most notably, bitcoin cash. The world’s 17th largest crypto merchant processing services reveal that Bitcoin Cash payments depleted from a high $10.5 million in March to a meager $3.7 million by May. The list of top notch merchant companies included giants such as BitPay, Coinify and GoCoin.

In the same constituency, BTC suffered even worse, it dipped from $412 million in payments in September 2017 to $60 million by May 2018. While the amount of merchant services increased to about $69 million in June, it was still a far cry from the $270 million valuation from a year ago.

Src: Chainalysis

 

Bitcoin advocacy has long been about suggestions that virtual money would one day replace fiat currencies as a means of doing business, but after a rise in usability earlier, the fall from grace has somewhat deterred that overall notion.

A senior researcher at the International Computer Science Institute, Nicholas Weaver said:

It’s not actually usable, the net cost of a Bitcoin transaction is far more than a credit card transaction.

Another dubious prospect is that Bitcoin-based transactions cannot be reversed, an issue which is well pertinent when a merchant or a consumer comes up against fraud.

The plunge in value of digital currencies in 2018 is consistent among all cryptos. Notably, the Bitcoin tumbled 55% from the previous year and Bitcoin Cash crashed 75%. Since December, Bitcoin Cash’s market capitalization has dropped by about 85% to $9.4 billion.

BCH still holds firm as the fourth biggest cryptocurrency in the world, with a market cap less than 10% of that of Bitcoin’s. It split from Bitcoin a year ago, the reason being the need to increase the block size of Bitcoin. The Hard fork took place on August 1, 2017 and the currency split into two, which since have been the top performing cryptos of the world.

So much so that a year ago, ‘Bitcoin Jesus’ himself switched allegiances towards Bitcoin Cash and invested in it. He also overhauled his website Bitcoin.com to focus on BCH. This marked as one of the feathers in the BCH cap, as Ver became a part of the movement that was aimed at stripping the early adopters of crypto from their remaining power.

He tweeted:

If you follow the herd, you’re loading up on Bitcoin (BTC).

If you think for yourself, you’re loading up on Bitcoin (BCH).

While the Bitcoin Jesus turned ‘Bitcoin Cash Jesus’ is adamant that BCH has to succeed and become the second coming of the Bitcoin, the stats are stacked against him. Adoption in commerce has been low, partly as a result of concentrated ownership. Research shows that about 56% of BCH is controlled by 67 wallets that are not located on exchanges.

Kim Grauer, senior economist at Chainalysis said:

There are fewer users of Bitcoin Cash, fewer holders.

Apparently, there are fewer users and are also saturated in one place. According to Chainalysis, of the 67 wallets not on the exchanges, only two wallets hold between 10,000 and 100,000 in Bitcoin Cash.

Garner also reported that the wealthiest holders are the ones that have been sending the most traffic to merchant services. However, she made no comment when asked about what in her belief the future holds for Bitcoin Cash.

It seems like quite a task, to expect Bitcoin to rally a second coming. Its prospects are not really helped by the slumping Bitcoin Cash, which foreseeably faces an anticlimactic ending. Even the most shrewd supporters are now changing fleet. However, ‘Jesus Ver’ remains undeterred.

He highlights how many transactions Bitcoin Cash carried in a tweet on August 13, where he explained that the long term price of a cryptocurrency ensures it’s usefulness as a currency.

Maybe this bullish standpoint is required to be one of those who invested in Bitcoin when it was nothing. He proved right then, let’s see if he has the last laugh now.

Razi Khan

Researcher, Electrical Engineer and a teacher, Razi is one who takes great intrigue in the prospects of blockchain and cryptocurrencies (BTC in particular) while contributing a critical approach over the subject regularly. Contact the editor at editor.news@blockpublisher.com

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