In 2017, Bitcoin Cash was predicted to be the new “bitcoin. The hyped “cash” was faster, cheaper, and more environmentally friendly than the original, but it did not get the role of a first fiddle. In 2021, the situation repeats with one correction – now there are two candidates. In addition to BCH, Dogecoin – fast, cheap, and environmentally friendly – declared itself with the support of Elon Musk and the media.
In both cases, we can talk about the centralization of the team and its influence on cryptocurrency. The BCH team is led by Roger Wehr, an internet pirate, and entrepreneur who in the past was one of the first to support BTC.
Although DOGE was founded by Jackson Palmer and Billy Marcus, the real head of the project can be named Elon Musk, who has confirmed close ties with the development team starting in 2019. In this light, Musk’s joke about being the CEO of Dogecoin looks completely different.
Aside from the downsides, centralization offers a certain advantage – technical decisions are made faster and they are more standardized.
After the hype of 2017, the popularity of BCH, despite Roger Wehr’s efforts, quickly waned. In 2021, Elon Musk drew the attention of the Internet community not only to daikon but also to bitcoin cache, calling it more adaptable to everyday payments compared to the original bitcoin. However, this has only marginally increased interest in BCH from the media and ordinary users.
Bitcoin Cash uses the SHA-256 algorithm, which allows the coins to be mined using ASICs. The latter opens the door for big players and leads to additional centralization of the project. BTC, which also uses SHA-256, faces a similar problem – about 75% of its processing power is controlled by Chinese miners.
In contrast, DOGE, which is also a distant fork of bitcoin, uses the ASIC-resistant Scrypt algorithm. Only 3 ASIC models of DOGE mining have been released since the project’s inception. Marcus and Palmer’s cryptocurrency still boasts a large number of individual miners using processors and video cards instead of specialized devices.
Thanks to online media support, Dogecoin is more actively accepted by retailers and small merchants alike. Moreover, after the bitcoin rejection, Tesla is considering the preemption of auto payments with daikon.
For a long time, both cryptocurrencies, BCH and DOGE, offered low transaction fees of just a few cents. With the rise in the rate and the strain on the network, Dogecoin has failed to maintain its position – transaction fees are as high as $2. However, this is still noticeably lower with bitcoin and etherium commissions heading toward $100.
Bitcoin Cash offers support for a rapidly expanding market of non-interchangeable tokens. This is both an incentive and an added risk, as the new segment is overheated and offers few useful use cases.
Returns for investors
As an investment, Bitcoin Cash remains one of the worst decisions for investors. Unlike most digital assets that have updated highs this year, BCH fails to come close to the record $3,800 recorded in December 2017. The figure now stands at $1,250, down 70% from ATH.
Dogecoin as an investment looks more attractive – in 2021 altcoin regularly updates ATH. The current price is $0.50, a third lower than the $0.75 recorded on May 8.