Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Bitcoin Cash (BCH) Crypto Rating = 59/1,000= 5.9%
Technology (0 to 300) = 26
- Speed (0 to 50) = 1
Although BCH was introduced as an upgrade of bitcoin in terms of scalability, it still lags in its transaction speed. A block of BCH that contains up to 32 MBs is created after every 10 minutes – same time limit when all pending transactions are confirmed. That is approximately 116 transactions per second – theoretically 16 times faster than BTC but 10 times slower than ‘Ripple’s XRP. According to Kraken however the deposit times are 2.5 times slower than Bitcoin on average.
- Cost (0 to 50) = 5
It’s only in a few instances when the transaction fee of BCH has been above $1. The main concept of introducing BCH was to increase the processing speeds of bitcoin while transacting in low fees. Unfortunately, that never yielded to anything. The highest transaction cost ever recorded on BCH was $1.2 and the lowest at $0.3. This gives an average transaction fee of $0.45 – Almost similar to ‘BTC’s but far lower than Bitcoins highest fees.
- Scalability (0 to 50) = 12
The creation of BCH saw it increasing ‘BTC’s 1mb block size to 8mb. But this fork has been perceived to only solving a part of ‘bitcoin’s scalability issues. ‘There’s a lot more to be done for BCH to get rid of ‘BTC’s scalability problems.
- Reliability (0 to 50) = 3
BCH is viewed as the generic version of bitcoin. Despite the love people show for bitcoin, it seems the crypto community despises BCH because it is centralized. Plus, it all gets worse when BCH forked to ABC and SV which seemed to have lowered its coinmarketcap value. More, BCH hash power is also scrutinized to possess insecurity vulnerabilities.
- Environmental Impact (0 to 50) = 5
Bitcoin and bitcoin cash both use SHA256 proof-of-work hash power, which means that they both can be mined using the same hardware but not simultaneously. However, BCH is one magnitude less hash rate than ‘BTC’s. So, when you guesstimate the electricity consumption during mining, you will find out that ‘BCH’s 4.30 billion kWh / year is 12 times lower than ‘BTC’s 50.5 billion kWh / year.
- Decentralisation (0 to 50) = 0
It is completely centralized. BCH was developed by only a handful of developers who later issued new features without consulting with its community. Developers have been working on the ‘network’s infrastructure with a complete disregard of whether their actions would spur a bottleneck effect of the coin’s value or not.
Security (-250 to 0) = -205
- Reorg, 51% & Brute Force Attack (-100 to 0) = -90
The first noticeable scenario of BCH reorg (some may call it a 51% attack) happened on May 15 this year when unknown miners mined coinbase blocks using prohashing strings. After initiating chain reorganization, the compromised blocks were acquired and distributed to the respective addresses. Controversially, BCH analysts object that this could threaten the security of the BCH blockchain, especially since miners can plot/scheme the network’s history in their favor. Either way, the perp was not able to reap anything from their efforts.
- Potential for Being Banned (-100 to 0) = -75
BCH has been delisted in a few exchanges already. Thailand’s SEC has also banned bitcoin cash operations in the country.
- Network Vulnerabilities (-50 to 0) = -40
Before BCH forked, analysis showed that 7 of the top mining pools of BTC could 51% attack it. Then after the fork now, this number has increased to top 9 pools. This is a huge vulnerability to its network.
Use Case (0 to 500) = 218
- Initial Main Use Case (0 to 100) = 3
BCH’ main use case was intended to be a payment method that solved the impending issues of bitcoin. But still, up until 2018, the number of BCH transactions have been a tenth of those of bitcoin.
- Mainnet Live (0 to 200) = 200
The power struggle that caused BCH to fork, was a fizzle move that dragged down its market value. However, along the way upgrades such as the increase to 32MB block size, implementation of Canonical Transaction Ordering and adding Schnorr signatures have been instrumental to its ecosystem.
- Additional Use Cases (0 to 100) = 5
Bitcoin Cash is adopted by payment service providers like BitPay, GoCoin, and Coinify.
- Additional Working Products (0 to 100) = 10
Inclusion of BCH on BitPay, one of the world’s largest crypto payment service providers, is a huge bonus to the project. BCH is also included in other service providers such as LazyFox (BCH-based gig economy marketplace), BlockchainPoker (an in-browser poker platform) and SideShift AI (an automated coin swap service).
Core Team, Partnerships & Developers (0 to 200) = 20
- Core Team & Developers (0 to 100) = 10
BCH’ core team and developers include investors, blockchain developers, entrepreneurs, a group of bitcoin activists, and miners who have been impressive thus this far to make sure the project is steered in the right direction.
- Partnerships (0 to 100) = 10
Currently ranking 4th in the Coinmarketcap, the increasing growth of bitcoin cash has attracted many long-term partners, which have been vital in maintaining a healthy ecosystem of the project. Some of the well-grounded partners include the likes of Bitpay, Simplex, Blockchair, Honey among others.
Update: much like BTC, BCH has lost all remaining credibility during the great recession of 2020.
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