Measures absolute and relative price fluctuations over several time frames and other variables.
Calculates returns in comparison to moving averages and other factors.
Measures the ability to scale, upgrade and other technological weaknesses or strengths.
Evaluates public acceptance, participation of developers and other key factors.
You may think that BCH simply mirrors the price gains and losses that BTC experiences and most of the time you’d be correct. But there are a couple of exceptions to that thinking. On December 19, 2017, when BCH finally began being traded on Coinbase, things unraveled quickly. The price of BCH skyrocketed, then Coinbase announced a “freeze” on trading. A little while later, news broke about an insider trading investigation. Following this news, the price of BCH unsurprisingly dropped.
The ROI of BCH will hinge on it overtaking BTC. An investment in BCH is an investment that it will dethrone BTC as the leader in cryptocurrencies.
Although BTC had begun creating new technology to help with scalability called Segregated Witness (SegWit2x), a certain group felt it was not enough, so they initiated something called a hard fork and bitcoin cash was created. Ever since then the purpose of BCH is to replace BTC as a ubiquitous currency.
While BCH succeeded in increasing its blocksize from 1MB of data per block to 8MB and accelerating the transaction verification process, the currency has yet to show any significant sign in robbing bitcoin of its powerful market share.
Again, if you believe that BTC is old and slow then you’ll probably also believe that BCH will overtake BTC and invest in it rather than BTC. If you believe that BTC can be improved upon, then you will take the exact opposite action.