For those who didn`t know, Bitcoin Cash was born from a Bitcoin fork, on 1st August 2017, with the aim of creating an alternative solution to the scalability problem of the bitcoin network, which is one of the most discussed factors when it comes to cryptocurrencies.
The problems that began to emerge in BTC were due to an exponential increase in commissions paid during transactions, and the time needed to confirm a transaction, which has become excessive.
Bitcoin Cash has therefore come up as a solution to these problems by increasing the maximum size of a single block to 8mb (versus 1mb of BTC) and altering the value of Emergency Difficulty Adjustment (EDA), which adjust the algorithm of difficulty faster than BTC.
The creation of Bitcoin Cash, however, did not go unnoticed, and created an even more profound division in the Bitcoin community, where there has been divergent opinions about the solutions to be implemented to solve the bitcoin scalability problem.
There are several Bitcoin Cash supporters, mostly miners and entrepreneurs:
Bitmain, for example, Antpool’s largest Bitcoin mining company in the world, with a 23% share of Bitcoin’s total hash power. And Roger Ver, CEO of Bitcoin.com, named “Bitcoin Jesus” for his role as a Bitcoin promoter since the early years, and now become an important supporter of the Bitcoin Cash movement.
These divergences have certainly influenced the market, which in recent days has seen fluctuations that have blown investors minds from around the world.
The third currency in terms of market cap is now above $ 1180, with a slight increase of around 1% over the last 24 hours, but with a decline compared to last few days, when the currency hit $ 1856.
The major fluctuations occurred after the sudden decision to cancel a software implementation, called Segwit2, which would increase the size of a bitcoin block. Those who supported this software implementation, simply called 2X, just transferred funds and mining power to Bitcoin Cash, resulting in an exponential increase in transaction volume and a drastic reduction in BTC market value.
The debate between the two versions of Bitcoin is still very open. Some Bitcoin Cash supporters like to mention to the original Bitcoin white paper by Satoshi Nakamoto, which says that Bitcoin is a global payment system, not a simple store of value. While BTC supporters consider Bitcoin Cash as one of the many alternative coins on the market.
We can`t know yet which one of the two versions of Bitcoin will prevail.
If we just observe the global interest of investors, BTC is still the market leader, with a 56% dominance. But if we have to stick to the original definition of Bitcoin, as a peer to peer electronic cash system that doesn`t require intermediaries, Bitcoin Cash definitely has more potential to become the leader.
We will see, the market will decide.
