Why Bitcoin Cash Is Not a Good Investment

The Craig Wright Controversy and the Shadow of Fraud

Bitcoin Cash (BCH) was born out of ideological differences within the Bitcoin community, promising faster and cheaper transactions through increased block size. However, it has since become a cautionary tale marred by internal conflict, splintering, and, most notably, association with one of the most controversial figures in crypto:

Craig Steven Wright.

Wright’s role in the Bitcoin Cash ecosystem, and his subsequent involvement in Bitcoin SV (a BCH fork), has deeply affected the project’s credibility.

This article explores why Bitcoin Cash has failed to live up to its promise, and how Craig Wright’s legal antics and fraud accusations have stained not only BCH but the broader crypto community.

In 2017, Bitcoin Cash forked from Bitcoin (BTC), driven by disagreements about scaling. Proponents argued that increasing the block size (from 1MB to 8MB) would reduce fees and improve transaction throughput. While technically sound in theory, the move lacked consensus and more importantly, fractured community trust.

From the start, BCH faced criticism over:

  • Lack of decentralization (mining pools dominated by a few entities)
  • Weak network effect compared to BTC
  • Market manipulation allegations, including questionable pump-and-dump behavior

But the real damage came later from within.

Craig Wright is an Australian computer scientist who gained notoriety after claiming to be Satoshi Nakamoto, the mysterious creator of Bitcoin. However, he has never been able to cryptographically prove this claim, a critical benchmark in the cryptographic world.

Wright’s involvement in Bitcoin Cash escalated with his push for a new direction that led to Bitcoin SV (Satoshi Vision) in 2018, another hard fork of BCH. During this time:

  • He aggressively attacked developers and community members who disagreed with him.
  • He filed numerous lawsuits to force people to accept his identity as Satoshi.
  • He presented forged documents in court to support his claims.

Wright’s most notable legal battle was Kleiman v. Wright, in which he was sued by the estate of Dave Kleiman, a deceased computer forensics expert and Wright’s former partner. The lawsuit alleged that Wright stole over $10 billion worth of Bitcoin belonging to Kleiman.

The case uncovered:

  • Dozens of forged emails and documents
  • Inconsistent and fabricated stories
  • Rejection by multiple judges who found Wright’s testimony to be “intentionally false”

In one ruling, Judge Beth Bloom described Wright’s behavior as showing a “willful and bad faith pattern of obstructive behavior”.

In another crypto related case, the Norwegian court ruled that Wright had no right to sue Hodlonaut (a Bitcoin advocate) for calling him a fraud, further undermining Wright’s legitimacy.

Even though Craig Wright ultimately forked away to Bitcoin SV, his toxic influence left lasting scars on Bitcoin Cash:

  • Reputation damage: Association with Wright tainted BCH’s credibility.
  • Loss of trust: Frequent forks (BCH – BSV) fragmented the community and created confusion among investors.
  • Exchange delistings: Both BCH and BSV have seen diminished support on major platforms, with BSV even getting delisted from Binance, Kraken, and others.
  • Developer exodus: Serious developers distanced themselves from the project, seeing it as directionless and dominated by ego driven conflicts.

Bitcoin Cash’s downfall can’t be pinned entirely on Craig Wright but his involvement accelerated its decline. His fraud accusations, litigious behavior, and cult like attempt to hijack the Satoshi legacy poisoned the project’s legitimacy and trust.

While BCH still exists and has a market cap, its utility, network strength, and long term value proposition remain questionable. Investors should be wary not just of the technical viability of a chain, but of the characters behind it.

In crypto, reputation is everything. And with Craig Wright at the center of its most tumultuous chapters, Bitcoin Cash lost the plot.