There seems to be a lot of hype going on after yesterdays wild swings between Bitcoin & Bitcoin Cash. There are many people out there & some with big voices who are very well versed in crypto markets pushing for Bitcoin Cash to take over.
Arguments for and against which one is to rule
The biggest arguments are that Bitcoin has become cumbersome & slow with high fees & speculation as to whether it’s being controlled by just a few of the lager mining set-ups.
Bitcoin Cash is cheaper both to transfer & to mine with a larger block size.
When Bitcoin was originally developed there was no way of knowing how long it would take for mass adoption & also the fact that it’s not just Bitcoin being used as a currency that’s causing the network to slow. I’m sure Satoshi didn’t foresee a $600 billion infrastructure all relying on Bitcoin. Don’t forget that for the majority of buys & sells whether it’s an ICO or selling tokens the whole crypto universe at the moment is sitting on top of Bitcoin. If you want to get into an ICO you need to buy Ether with Bitcoin or directly buy the tokens. Exchange to another alt coin also from Bitcoin & then if you sell anything on an exchange it reverts to Bitcoin so the market is always fluid & we see much higher daily volumes for Bitcoin than anything else. While some exchanges do allow you to purchase other coins for cash, the primary coin bought on most global exchanges is Bitcoin.
I’m sure that if Bitcoin Cash or any other coin for that matter being the primary coin & under so much strain will not perform the same way as it does independently, although block size may speed things up, I don’t know that we can compare anything to Bitcoin accurately unless the same pressure is applied & see what happens. Keep in mind that just this year over 700 alt coins have been added to the crypto universe as well as the masses of people joining the network.
Bitcoin was designed so that the creation of new blocks would slow the greater number produced & for mining difficulty to increase. This is to ensure that Bitcoin as a currency maintains it’s value, is not easy to obtain and comes at a cost. It’s fair & reasonable for the exchange rates to go up due to mining difficulty & power costs. With mining difficulty increasing. Will we ever be able to mine the last block? Or will it be like reaching the speed of light :)
Moving forward
For the moment it’s probably a good idea to hedge your bets & hold equal amounts of both Bitcoin & Bitcoin Cash. For Bitcoin Cash to take over and become the primary coin there would need to be a consensus between everyone, not just the biggest mining companies. A failure for all to comply at the same time would mean that some exchanges would be trading Bitcoin as Bitcoin while others might be trading Bitcoin Cash as Bitcoin. There needs to remain a clear definition for each coin & its value. The third alternative & a very good hold is Litecoin which has all the benefits of Bitcoin with some great additions & new features to be added.
The rise in value of Bitcoin Cash since yesterday seems to have been come about because Coinbase introduced the ability to purchase BCC with USD. This in turn had everyone shouting from the rooftops that BTC is old & tired and should be replaced. That may well happen over time but whenever a major event happens in the crypto market we always see the volatility rise & everything moves around then settles again. When BCC was created we had exchanges stop trading & everyone was holding on to their coins from up to a week beforehand.
There will always be volatility in the market, just remember to always buy low and sell high. Do your own research, listen to what the experts are saying but don’t make decisions based on one person's word. Search things out for yourself, use commonsense and you won’t go wrong.
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