Crypto Winter And Opportunities For Bitcoin Cash

We will be soon reading articles and comments about crypto being dead and old news, how it was all just a mania, and we were all caught in a bubble (again).

The crypto-haters understood nothing but just cared about the prices and market caps. It will be those interested in dragging the market down again, perhaps aiming to buy lower.

We will also keep reading how Bitcoin (the BTC one) is the only cryptocurrency worth our time and how everything else is a “shitcoin”.

This is the BTC maximalist approach, a cult of small to medium BTC investors, that represents the interests of the BTC whales following an aggressive approach.

There will be complaints, panic selling, and mass misinformation to keep dragging the market down.

We may be entering a bear market, but it is certainly not the end of crypto.

A bear market is a time when opportunities are scarce but will still emerge for those that remain and keep developing.

It is a time of rebuilding, making it all simpler for the next wave of adoption, and educating the remaining userbase and investors.

Crypto Bear Market The Time We Educate and Rebuild

It can be brutal for everyone. Developers paid in crypto, lose most of their purchasing power. Investors lose money and many exit crypto completely in disgust.

Influencers also flee and move on to different opportunities. Many popular YouTubers reduce their activity or simply quit creating content since the numbers of viewers drop significantly.

The crypto bear market resembles a recession in the real economy. Advertising, discussions, conventions, and interest in crypto get reduced to just the basics, but the networks don't simply stop. The decentralized blockchain networks with a strong userbase remain operational and unaffected.

As usual, most retail investors bought the top. Those who entered crypto in 2017 suffered greatly during 2018-2019. For some investors, almost all profits from 2017 evaporated in 2018. It takes about that time (a year) to reach a new bottom and a new wave of investing interest to begin.

Bitcoin (BTC) today is nowhere close to the dominance levels it held in the past. It managed to recover in 2019, but this was because of prolonged propaganda by the maximalists and better networking (marketing, connections with Wall street, PR).

Bitcoin Cash

Bitcoin Cash didn’t reach out to the massive influx of investors during 2020-2021. Was this a failure? A failure in marketing perhaps, since Bitcoin Cash wasn’t in the news as much as some startups that caught the attention of the overwhelming part of newcomers.

Perhaps Vitalik considers only the aspect of investors as a success, yet is it all just about the price?

Bitcoin Cash succeeded in the most meaningful approach.

It established itself as the cryptocurrency of fundamentals. It increased in size of users and even reached higher transactions from BTC for three months. An accomplishment that shouldn’t be ignored.

Bitcoin Cash kept developing, enhancing its currency features, and its community kept backing the various initiatives around the world, promoting it, and reaching out to the business world. Merchant adoption is increased today in various places, with some of the hot spots being Venezuela, Nigeria, Slovenia, the Caribbean.

A major event for Bitcoin Cash was the release of the smartBCH sidechain. A smart-contracts network backed by prominent investors, already embraced by thousands of users, delivering Ethereum smart-contract capabilities (NFTs, Dapps, DeFi) in a cost-efficient approach.

This success will have a long-term effect on Bitcoin Cash since it retains and will keep attracting more users.

It didn't succeed in attracting top funds but succeeded in creating a userbase that is the envy of the rest crypto communities.

I wrote previously multiple times my opinion on Bitcoin Cash. We all want adoption, but also this needs certain steps to bring Bitcoin Cash as a hot topic again. (Cardano Can Set An Example For Bitcoin Cash Marketing).

Everyone can easily observe the anti-BCH propaganda, but it only takes one important person (i.e. Musk) to agree with a Tweet to find better chances. Propaganda gets canceled with specific strategies and a lengthy process of educating the public. This is a battlefield, and we will have to bring better weaponry than rocks and sticks.

Crypto is slowly becoming mainstream. Certain mechanisms are required and every approach should be examined. Bitcoin Cash needs to be activated on all fronts, anywhere possible to maximize its chances and meet its true potential.

Having better exposure to the public also creates better odds for major retail to adopt as a method of payment. A state-of-the-art blockchain network, such as Bitcoin Cash, needs this attention.

Bitcoin Cash deserves this, although timing is equally important. Allocating vast capital during a “bear market” may not bring the desired results.

It is also all connected with the BTC boom and bust cycles, since often BTC drives the market in a downward spiral and a lengthy bear market, as historic data suggests. However, the importance of BTC as a decisive factor in the market direction is decreased as innovation in blockchain networks is flourishing.

In Conclusion

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While a revival of the bull run took place after the May 2021 crash, Bitcoin Cash didn’t reach the May 2021 heights again and kept sinking in the crypto abyss.

The money is flowing in the opposite direction nowadays, as some BTC whales seem tired and, with the help of exchanges, are “dumping” heavily, influencing negatively the price of all cryptocurrencies.

The algorithms pegged to BTC pairs react and sell massively all cryptocurrencies. It is a mechanism to support BTC but won’t have the same effect as in the past.

The worst part is we can’t imagine how low will prices go. Sadly, this was the time many in crypto already had decided on a certain portfolio, and a time Bitcoin Cash could be at a significant point of entering better terms.

No matter how rough the crypto winter gets, Bitcoin Cash will recover.

I can’t say the same about BTC, though, since LN was supposedly the instrument that would create mass adoption waves for BTC, but failed miserably even when it was authoritarian enforced by the government of El Salvador.

Bitcoin Cash is adopted voluntarily since it offers better terms than the fiat currencies or most cryptocurrency counterparts.

Adoption and side-developments will eventually become the factor that will drive its price upwards and escape the BTC trend and peg.

Bitcoin Cash is delivering the ultimate cryptocurrency today and smartBCH further enhances its presence in the digital finance field.

This is a time of development, education, planning, building, and developing a more competitive strategy.

• Cover Photo: by on Unsplash (modified)

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