Behind every crypto token is a small army of glowing pendants. For many, the only cryptocurrency that deserves such determined support is Bitcoin (BTC). But what is Bitcoin really, what is its purpose and how can the best optimize the cryptocurrency?
Disagreement in answering these questions led to the creation of Bitcoin Cash (BCH), the most successful spin-off of Bitcoin to date. For some, BCH is the answer to the problems of cryptocurrencies. However, the coin has also had some significant problems in recent months. From a multi-million dollar hack to the proposal of a mining tax, the BCH community is facing an ordeal like never before.
Bitcoin Cash: Split by nature
Bitcoin was invented in its original form by a mysterious person known only under the pseudonym Satoshi Nakamoto. From an ambitious project that emerged in libertarian and cypherpunk circles around Bitcoin, an independent global financial industry. However, during the further development of Bitcoin, there were arguments about the direction to take because of disagreement about basic parameters of the technology.Scalability is one of the most fundamental problems in any cryptocurrency. While Bitcoin is the largest and most well-known cryptocurrency, it still faces the same scalability issues. Bitcoin’s block size had been limited to 1 megabyte. However, this limit is now causing long transaction times. This severely limits the total number of transactions possible per block.
Then BCH came into play. The developers changed the block size from 1 MB to 8 MB and hoped that this would increase the number of transactions per second in order to compete with payment titans such as PayPal and Visa. The adjustment also led to differences. The crux of the problem was what people see as the real purpose of Bitcoin. For those who believe that Bitcoin is a store of value, slower transaction times aren’t a big problem. However, if you consider Bitcoin as a means of payment, reducing processing speed and costs – and thus maximizing practicality – is of the utmost importance.
Bitcoin Cash was launched by Roger Ver in 2017. A quick glance through Twitter accounts related to crypto shows that the vehement disagreements between the two Bitcoin warehouses continue. The dispute is not limited to the main purpose of Bitcoin. Each new crypto project faces not only new security issues, but also the challenge of living up to the ideals of its respective creators. And as the past few weeks have shown, it is no different at BCH.