Bitcoin Cash – A Despised Savior?
Change is an inevitable part of our life. This rule also applies to the cryptocurrency world. Based on the idea of freedom, open-source projects used to differentiate between different perspectives of their developers. In the case of Bitcoin, it led to the creation of Bitcoin Cash.
Two years have passed since the hard fork of the first cryptocurrency happened. Through this time, both coins have had better and worse moments. But in the end, they still are in the lead of the most important cryptocurrencies. Let’s take a closer look at the story of Bitcoin “offspring”.
The Bitcoin Cash is the result of disagreement in Bitcoin community. Those differences concerned the block size parameter. In the original blockchain, the size of the block is constant. Because of it, the number of possible transactions in one moment is also invariable. With a constantly growing network, it leads to a significant increase in transaction fees.
It divided Bitcoin stakeholders into two opposite camps. First were supporters of increasing the block size. They argued that such a change is an essential part of the process of popularizing Bitcoin and further adoption. Lower transaction fees, according to them, were necessary to create a currency which will actually work as a worldwide payment method.
On the other side, opponents of bigger blocks stated that such a solution would increase the costs of participation in the blockchain. Maintaining the network after increasing block size would require much more advanced software, which leads to excluding individuals and favoring larger companies. Such consequences would be a threat to the decentralized nature of Bitcoin.
Nevertheless, how different were their perspective, both sides saw that some steps needed to be taken. Opponents of bigger blocks were opting for so-called “soft fork” – a smaller change in blockchain infrastructure, aimed to increase the overall capacity of the network. It eventually led to an upgrade called Segregated Witness – SegWit in the shortcut.
The other side didn’t agree to that solution. Advocates of change consider it as a secondary matter, which would only work with an increased size of blocks. It motivated a group of investors and entrepreneurs to work on their own to resolve the problem. It finally resulted in a hard fork at block height 478559, on 1 August 2017. That day, the Bitcoin Cash was born.
One of the most prominent supporters of the new coin was Roger Ver – also known as “Bitcoin Jesus”. He saw in the idea of Bitcoin Cash a chance to fulfill the original Bitcoin vision. His position in the cryptocurrency industry has helped to attract many people to BCH.
Moreover, Ver makes efforts to change the perception of the new cryptocurrency. He intended to make the public to refer to it as just “bitcoin”, despite the incontestable position of the original one. And since he, until recently, was the CEO of Bitcoin.com website, that idea had some chances to succeed.
Good beginning – but not good enough
After an update, many of old Bitcoin contributors saw in BCH a way to achieve the overall goal of this cryptocurrency – to become a fully adopted as an actual currency, not an investment target.
Moreover, most of the existing infrastructure, like exchanges or wallets, gave Bitcoin Cash the green light and didn’t exclude it from participating from the global market. Both technical and social issues provided a good start for BCH, with a significant market value.
But despite all the support, it was not enough to actually overcome Bitcoin. For the majority, the newly forged cryptocurrency is merely a copy of the original one. And they have a good argument for that. The original BTC is still an indisputable leader on the cryptocurrency market.
There was one more case which contributed to BCH defeat in the race for the cryptocurrency throne – the naming. Forked coin, as a presented alternative for “mainstream” project, have to take a new name. For people not familiar with the topic, it sounds unfamiliar. In the worst case – they have considered it as just a fraud and poor imitation of the original one.
Fork of the fork
As if that was not enough, the disagreement also appeared among Bitcoin Cash supporters. In 2018, Roger Ver proposed some possible changes in information storage and scaling capability. Part of the community, led by Craig Wright, consider chosen direction as inconsistent with the vision of the original Bitcoin creator, Satoshi Nakamoto.
Eventually, Wright has developed his own version of Bitcoin Cash, called Bitcoin SV, a “Satoshi Vision”. The main difference was increasing the size of a block, this time up to 128MB, when original BCH have stayed at 32MB.
Moreover, Wright confidence didn’t end with BSV – he declared himself as real Satoshi Nakamoto, and claimed that his cryptocurrency as the original Bitcoin. But the identity of the mysterious Bitcoin creator is an entirely different story.
Despite problems and undoubtedly lower popularity of Bitcoin Cash, the Bitcoin’s offspring performs well in comparison to other fork-based cryptocurrencies. It still occupies the top cryptocurrency rankings, both in market cap and volume. Developers responsible for its creation still support the project, doing their best to match the ever-changing market situation.
The strongest argument for BCH lies in its very base idea – to make Bitcoin as easy to use as possible, providing the lowest reasonable fees. This approach made it a considerable choice for people who are looking for the coin, which is not only an investment target but also an actual currency.
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