Bitcoin Cash vs Ethereum
I started to follow the patterns of this trading pair since 2019.
Just to remember: All time highs – 4.899 ETH per BCH on December 20th 2017
All time lows: 0.7289 ETH per BCH one year later on December 16th, 2018
I saw that cold day in 2018 BCH below 80 USD in front of me; I really don’t know what I was thinking because I didn’t buy it back then. But what ifs don’t exist.
Today BCH/ETH we hit the new low of 0.7283 ETH per BCH. This year we hit around 2.1 ETH per BCH at the end of January. Now this year since June, almost 2 months Bitcoin Cash has been incredibly low against Ethereum which has performed much better than most of the top cryptos.
If we check the history records, the lows of Bitcoin Cash around or below parity level with ETH may last up to 3 months.
All time high ETH gas fees is something really terrible that has been happening to all Ethereum users lately. Just 4 days ago, ETH gas fee was 70 gwei, today ETH Gas fee is already soaring around 268 gwei. Vitalik Buterin recognized that high Ethereum fees are a serious threat for Ethereum because it makes all ETH network less stable. And he openly recognized that the gas fee over 100 gwei will be a big problem.
Now what it means at least for me:
Few months ago, when I was transfering ETH or ERC-20 token from my wallet, it was around 0.07 to 0.12. Last month the fees, started to range from 0.3 to 0.60 usd. What surprised me today in the morning, the same fee was 1.80 usd, and the fee was 150 gwei; I cannot imagine how much it is now with 260 gwei and I don’t wanna even know because it’s very dissapointing and frustrating at least for me.
I like Uniswap because it’s fast and you don’t have to deposit to exchange, wait, and you are in charge of your custody. When I converted one ERC-20 token to ETH, they charged me almost 14 USD, while last weekend it was only from 3-6 USD. Even if i like Uniswap, I am not willing to give them 14 USD again.
I decided to keep only three ERC-20 tokens, which I really like; one of them is 1UP because it stands for a very solid Project. The small amounts of ERC-20 tokens will stay in wallet or on exchanges, they will stay there or will be converted to Bitcoin or Bitcoin Cash.
Another option will be short term trading of ERC-20 tokens on exchanges and then convert the tokens into BCH or Dash.
Now what does these commissions mean for many people?
They will probably trade, withdraw – higher amounts. Because if someone trades below 10 USD, the impact of these fees is terrible.
Another aspect is cryptoholder’s country of residence.
If you are from US or EU, probably 10 or 15 USD maybe not a big deal. But if you are from Africa or Asia, this money can be equal to a salary of 2 days up to 1 week. It depends on each country. That automatically means, that these commissions are blocking ERC-20 adoption in those countries.
Ethereum and some ERC-20 tokens, have increased much more than other cryptos. Litecoin, Dash and Bitcoin Cash didn’t have that good performance as this Top 2 Crypto.
Some people from ERC-20 environment have told me that ETH 2.0 and Defi will solve these ETH gas fee issues and other problems.
I like a lot many ERC-20 tokens and proposals but I officially decided to stick only to 3 projects, where one of them is Uptrennd. The other ERC-20 tokens together with Ethereum I have already sold.
I completely decided to go in favor of Bitcoin Cash environment, SLP tokens (Simple Ledger Protocol) – where fees are at least 95% lower than in ERC-20 environment. I wasn’t much into Bitcoin or other top cryptos, but I will be actively involved in Dash, Binance Coin.
ETH gas fees haven’t only showed a strong failure which started to dissappoint a lot of people but also this has created a very negative positioning for Ethereum because it completely makes unprofitable to send small transactions. A lot of people feel ripped of their crypto gains.
Now if you want to have commissions under control the worth of ETH or any ERC-20 token, shall be now at least 200 USD; or unless you are strongly convinced about your swap. But you should think over carefully about the transactions with less than 50 USD worth.
Bitcoin Cash on the other hand may have its pros and cons, but the speed and low commissions make all this network a great end user experience. One strong problem for BCH were the rewards for miners after BCH halving of this year, but there are already viable solutions for this topic scheduled for November of this year.
If I want to cash my cryptos in my national fiat, if they are ERC-20 tokens, I am converting them on exchanges into Bitcoin Cash because their withdrawal commissions are much friendlier; because I really don’t want to deal with any ETH based wallet.
If you ask me, what do with Ethereum?
My personal opinion (not any financial advice intended) – sell it as fast as posible, convert it into Bitcoin, stable coin or Bitcoin Cash. These commissions will have a strong impact and unfortunatelly a lot of crypto investors will be impacted by the fees.
I expect Defi and all innovations will restablish order in Ethereum network.
And Bitcoin Cash?
Today it’s around 0.73 ETH per 1 BCH and around 285 USD per 1 BCH. Will it rise or will it go down?
My answer is, it will be strongly correlated with BTC/USDT exchange rate. In the worst case it may go to 0.5 ETH per BCH, but there are strong possibilities that we may see Bitcoin Cash over 1.5 ETH at the end of this year.
Bitcoin Cash has a strong resistance to overcome which is 500 USD, if you see BCH over 500 USD, then you can see it pretty fast around levels of 700 or 800 USD levels.
So after thinking it over for many times, my vote goes for Bitcoin Cash and SLP tokens. We have tons of things to get done in our community but we are on a good way and I am very strongly convinced about it.
