Recently, the Bitcoin Cash (BCH) community was ignited on Reddit and identified Dash (DASH) as one of its main competitors. What do you think of that?
Who wants to kill Bitcoin Cash?
Bitcoin Cash is the 4th largest cryptocurrency on the market in terms of capitalization. Bitcoin Fork (BTC), Bitcoin Cash’s primary goal is to be used as a global payment medium. In this category, there are many contenders for the title. If historically Bitcoin Cash was in competition with Bitcoin, the latter no longer really satisfies for the daily payments.
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In this niche, Litecoin (LTC) and Dash (DASH), respectively 7th and 13th in market capitalization, have a better card to play. This is also what the Bitcoin Cash community seems to think.
What does Dash have more than Bitcoin Cash?
We will spare you the technical considerations here. In principle, the two digital currencies are similar. However, we will highlight three major differences:
- Dash automatically creates a reserve of up to 10% of the mined Dashes to finance development projects, in particular;
- Dash has a higher merchant penetration rate than Bitcoin Cash
- Dash is privacy focused coin while BCH is pseudonymous
However, the play is far from over because the acceptance of cryptocurrencies in traditional commerce is still in its infancy.
Scheduled death of the Bitcoin?
Bitcoin has not yet had its last word and many solutions to the scalability problems we know are under development or analysis. The Lightning Network is just one example. In addition, Charlie Lee, founder of Litecoin, continues to present the LTC as inseparable from the BTC, which could leave the BCH on the sidelines unless a superior and competitive offer is put in place. In short, Bitcoin is more than ever the king of crypto-currencies.
In this game, the only possible alternative is to run to the sellers by offering them a “turnkey” solution in order to accept payments in BCH.
Bitcoin Cash and Dash, friends or enemies?
Although some believe that Bitcoin Cash and Dash have common interests, a possible agreement would only be of short duration. Leaving ordinary people the choice of paying in Bitcoin Cash, Dash, Litecoin, Stellar (XLM), Ripple (XRP) or other altcoins only adds an unnecessary degree of complexity. It is difficult to determine who will win. That is why we recommend that investors diversify their portfolios.
In any case, the Bitcoin Cash community is well advised to take an interest in its competitors. As Sun-Tzu said: “Know your enemy and know yourself”. A thousand years later, the game has changed but the rules remain the same.
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