Bitcoin Cash for beginners
Published 1 year ago
Over the past few years, the developers were debating about the scalability of the Bitcoin Blockchain. With more and more people investing in Bitcoin and adopting cryptocurrencies, with more exchanges permitting trading it was clear that the Bitcoin network will become slower. The transaction fees were growing and it takes longer time for the transactions to be processed. Some developers in the community proposed increasing the block size as scalability measure. But it was hard to find consensus. That is why a group of developers supporting larger block size decided to hard fork the Bitcoin Blockchain. And on August 1st, 2017 a new currency called Bitcoin Cash was created. There were a number of other hard forks in the Bitcoin Blockchain but today we are going to talk about Bitcoin Cash.
Last few days the cryptocurrency community experienced some anxiety. This was related to the canceled Segwit2X hard fork that should have been happening around November 13th. The proposal was to increase the block size from 1M to 2M, but there was not clear which fork will take the name Bitcoin. At the end, the group supporting the increase of the block size gave up. And the planned Segwit2X hard fork got canceled. But still, some miners announced that they will still implement the hard fork but it looks like this is less probable to happen. Instead, it looks like all the supporters of the larger block size are moving now to Bitcoin Cash which had to gain a lot from the Segwit2X hard fork cancellation. That is also one of the main reasons why Bitcoin lost some value in the past few days.
There are different opinions on this issue today and it looks like both groups started a "civil war" in order to grab attention. I hear that these wars a bad for cryptocurrency space but I think that not. In the long run, both projects can coexist together with other altcoins. They should not fight each other but rather improve themselves. A healthy competition will benefit the cryptocurrencies world because both teams will strive to have their own advantages and people will have the freedom to choose. Isn't it a decentralization?
I think it's ok to have alternatives and the dispersion of the value. Like this, the community is stronger. For now, it looks like the Core Bitcoin is better for storing value and for big investors. On the other hand, Bitcoin Cash is good for small transactions and possible in future an investment for the long run. So people can benefit from both if they wanted.
At the end, I would suggest everybody who read this article - don't start wars, get to work and proceed with care, make smart decisions and remember we will all benefit from healthy competition in the long run.