Bcash is going through some real trouble now. As you all know Bitmain, the biggest manufacturer of mining equipement and one of the biggest miners themselves, is launching an IPO in the upcoming quarter. Looked at the published investors deck and noticed some interesting details.
Bitmain currently holds over 1 million BCH (Bitcoin Cash). As we know BCH has suffered disastrous losses since beginning of the year and the asset is highly illiquid. There is no sizeable OTC-market for BCH and Bitmain cannot sell it on the exchanges because this would crash the price extremely and possible lead to the death of BCH. Bitmain made a very big mistake of exchanging most of their BTC to BCH and now they are stuck with it. They must be praying for a bull market right now. This is their only chance.
Additionally, they have problems on the hardware Front, we haven't seen a new Antminer in a while and the B3 was a desaster. So, to summarize:
- Bitmain is stuck with a huge position of a highly illiquid asset that is rapidly losing value
- Hardware developement isn't going good as in the past
- suffering from huge opportunity cost from the mass exchange of BTC to BCH