Among the reasons for this decision is the low uptake of technology.
Bitcoin Cash is one of the main hard forks of Bitcoin, founded in 2017. With little adhesion in Brazil, a Brazilian brokerage company withdraws Bitcoin Cash from its platform.
Bitcoin (BTC) is the world’s leading cryptomeda, mainly in market value. This feature, however, causes alternative cryptomoeda projects, altcoins, to try to achieve the same fate.
In 2017, for example, the Bitcoin community faced a dilemma in driving the technology. The episode that became known as the „Block War“ culminated in the launch of Bitcoin Cash.
This alternative currency came about with the proposal to have larger blocks. The intention was to increase Bitcoin scalability, allowing more transactions within the network.
Broker withdraws Bitcoin Cash and gives customers time to withdraw
The Brazilian Bitcoin Cash community loses the support of a brokerage firm that believed in the project from the beginning. This is because FlowBTC was one of the first in Brazil to support the hard fork.
According to Cointrader Monitor, FlowBTC is the 13th in volume of Bitcoin in Brazil today, out of 31 listed brokers. Despite the good volume of trading with Bitcoin, the same is not repeated in Bitcoin Cash.
In an e-mail sent to clients, FlowBTC highlighted that two main reasons were behind the decision. One of them is the low volume of asset trades at the brokerage house.
In addition, Bitcoin Cash has shown no innovation over the years. Therefore, there is no reason to maintain the listing of Bitcoin Cash.
„We were one of the first exchanges in Brazil to distribute BCH to clients who owned BTC at the time of the fork.
But since then, we have not seen an increase in the volume of trades or innovations in the Bitcoin Cash protocol that would justify keeping it on our platform,“ FlowBTC reported.
For customers who have Bitcoin Cash on their platform and wish to keep the currency, withdrawals must be made by October 23rd. Customers who wish to exchange for Real or other crypto currency must also do so before the date.
Even though it is the 6th largest currency in the market, Brazilians have preferred other crypto currencies
According to the market cap of the cryptomaps today, Bitcoin Cash is the 6th largest currency. The price of Bitcoin Cash loses 0.71%, quoted each unit at R$ 1247.
In recent days, however, the Brazilian IRS has released data on cryptomorphs traded by Brazilians. From August 2019 to July 2020, the IRS found that R$ 100 billion were traded.
Of that amount, the municipality made it clear that 90% corresponds to Bitcoin, Ripple and Tether. That is, the interest of Brazilians in Bitcoin Cash is really low, in line with what was exposed by the broker FlowBTC.
This currency is even controversial since its foundation, causing disagreements in the world community. Some of its proponents were even accused of fraud with the project because they offered BCH to investors like the „real Bitcoin“.
As a result, many bought Bitcoin Cash believing they were investing in the right currency and lost a lot of money. Today Bitcoin Cash technology remains virtually obsolete, with Bitcoin innovations such as the Lightning Network overshadowing this altcoin.