“Bitcoin Cash is the real Bitcoin and will have the larger market cap, trade volume and user base in the future.”
In 2009 an anonymous called Satoshi Nakamoto has introduced a concept of Bitcoin. This is how an idea of a “peer-to-peer electronic cash system” came to the reality. It is important to note that Satoshi Nakamoto is not a real name and no one know who is the real founder of Bitcoin. We do not know anything about him (or her?!): nationality, profession, gender, age, etc. In a few years Bitcoin with its revolutionary idea has conquered the world. Thus, Bitcoin community was growing rapidly for a few thousands in 2010 to more than a million in 2018.
Interesting facts about Bitcoin
- There are more than 22 000 000 Bitcoin wallets registered in the world as of 2018
- 5% of the USA citizens own Bitcoin
- There are from 3 to 6 million active BTC users as estimated by a Cambridge University research.
- Coinbase in the world’s most popular and biggest cryptocurrency exchange. More than 13 000 000 people are using Coinbase
- There are many people who are trading Bitcoin irregularly (several millions) and they are not included in statistics
Bitcoin has some amazing features, which attracts users from all over the world. Among them – decentralization, anonymity, peer to peer structure, independence. However, it also has a number of important disadvantages. For example, the speed of BTC transaction is critically low – about 7 transactions per second. MasterCard carries out more than 24 000 transactionsper second. In the beginning of 2017 Bitcoin community has realized that Bitcoin network capacity is too low for such a big community of users. The problem of scalability became obvious. Bitcoin needed some reform in order to solve the problem.
A good question is “Why wouldn’t you just increase the number of transactions per second?”. At first, the limit of Bitcoin Blocksize was 1 MB. It was increased to 2 MB a few years ago. The second good question is “If it was once increased to 2 MB, why wouldn’t they increase the volume again?”. Imagine a heavy traffic problem in a big city. The government makes a decision to increase the speed maximum to 200 km per hour. What consequences does this decision have for a big city? Firstly, a security problem will arise, because the probability of a car crash increases. Secondly, will small or old cars be qualified for highways? Will it be able to move faster in order to maintain the speed limit? No. Only expensive sport cars will be eligible to use a highway. The owners of small vehicles will prefer to use smaller highways or roads. Similar situation can also happen to Bitcoin network in case the community decides to increase the transaction volume to more than 2 MB per second. More blocks means more information to work with for every transaction.
What is the solution for Bitcoin?
The issue of Bitcoin scalability is highly debatable. Basically, there are 2 gropus with different views on this important problem. The first group argues that BTC is not a “glass of water” payment method, while the other group claims that Bitcoin needs to be scaled. Both groups had strong arguments and did not want to give up. Thus, in summer 2017 Bitcoin was split with the help of hard fork. This is how Bitcoin Cash, a new Bitcoin version was created. Bitcoin Cash has 8 MB Blocksize limit, which is four times bigger than Bitcoin (2 MB). Thus, there are more than two and a half million transactions carried out every day.
Dan Nathan said: “I’ve been buying Bitcoin Cash and Ethereum. Those two seem like ones that have some room to go here, while bitcoin seems to have some technical issues.”
Bitcoin versus Bitcoin Cash
Bitcoin hard fork was finally created in August 2017. In case you owned Bitcoin before the 1stof August 2017 (this is when BCH hard fork took place) you are allowed to claim the same number of units in Bitcoin Cash. In case you had any BTC before block 478558, you have a right to claim the same amount of Bitcoin Cash.Don’t worry, your tokens are still waiting for you and will be available whenever you decide to claim them. However, you need to remember what Bitcoin wallet you used at that time. If you used a full node (thick) Bitcoins wallet and downloaded the whole blockchain, you simply need to select ‘Backup Wallet’ option in the menu. After that, you can import a generated file to any thick Bitcoin Cash wallet and get your BCH.
Does it mean that everyone now owns both Bitcoin and Bitcoin Cash? Amazing news!
First of all, only those, who owned Bitcoin before the 1stof August 2017 could claim their Bitcoin Cash. Secondly, as soon as the amount of the BCH cryptocurrency increases, Bitcoin Cash value decreases. It is also important to remember that Bitcoin and Bitcoin Cash are two different cryptocurrencies now, you can not interchange them.