Despite the brief resurgence lead by (BCH) in recent weeks, a persistent pattern of struggling chart formations could imply a potentially bleak future for the coin. Born from the contention associated with BIP91 segregated witness (SegWit) upgrade in 2017, BCH gracefully emerged as the first Bitcoin fork, aiming to support larger blocks in the blockchain.
Since the tumultuous end of the 2021 bull run — an unfortunate 87% price plunge dropping BCH to a trading price of around $90 — the coin has struggled to find stable ground. A surprise recovery rally on June 19 did ignite hope in the community as price action soared by 200%. However, the recovery proved erratic, topping out at $330 on June 1 before spiralling down again.
Currently, BCH is being haggled at $236.5 after a 2.23% price dip over 24 hours. The coin has experienced a bitter 29% price bleed-out within 20 days, failed to find essential support from the ascending 20DMA, and now seems on a collision-course with the 200DMA at $140. Analysts suggest holders should hold on to the $150-190 support zone.
On the other hand, the newly emerged project known as BTC20 is captivating crypto enthusiasts for allegedly resolving Bitcoin’s pressing issues. Its major allure—a visionary promise of rectifying Bitcoin’s energy consumption problem and a lucrative reward mechanism to hold its investors.
Bitcoin has come under scrutiny lately due to its massive carbon footprint, mostly attributed to the energy-intensive proof-of-work mining, which has seen carbon emissions skyrocket from just 0.9 metric tons in 2016 to an alarming 113 metric tons in 2021. BTC20, built on a proof-of-stake model on ERC-20, pledges to reduce emissions by an astounding 99.95% per transaction.
Additionally, BTC20 possesses a unique long-term holder reward system. Rewards will be given through a stake-2-earn mechanism — approximately 14.96m tokens over 120 years. This longevity is predicted to outlive the original Bitcoin network. The project aims at creating a new generation of Bitcoin holders with initial 3m tokens availed for the presale at an enticing price of just $1.
While BCH’s future hangs in the balance with a Risk: Reward ratio of 0.74, all hope is not lost for Bitcoin stalwarts. BTC20 offers a promising alternative, presenting a chance for enthusiasts to become “wholecoiners”. It’s certainly something to monitor closely.
Disclaimer: Cryptocurrency is a high-risk asset class. You could lose all your capital. Stay vigilant.
Source: Cryptonews
