It is no secret that Bitcoin Cash has taken the recent spotlight with a quick hitting $10 billion market cap, and a price surge of over 100% during the last two days. Investors are frantically wondering if Bitcoin Cash will take over Bitcoin. Many are panic selling their Bitcoin for Bitcoin Cash, while many are holding their Bitcoin with confidence that this is a fluke. Bitcoin Cash was the infamous hard fork that occurred on July 23rd, 2017 to increase the block size limit on the blockchain. Investors and speculators are wondering why everyone is enthusiastic about Bitcoin Cash now, and not two months ago when the fork occurred. The timing is highly coincidental as it coincided with the SegWit2X fork cancellation. Prior to the cancellation, in anticipation for the fork, a large percentage of investors were selling their alternative currencies back to Bitcoin with hopes to get free B2X delivered to their wallet.

Who is Behind Bitcoin Cash

The largest names supporting Bitcoin Cash are Roger Ver, a notorious early Bitcoin adopter and investor, and Jihan Wu of Bitmain. They both are going to great lengths using their influence to persuade investors to adopt Bitcoin Cash. For example, Bitmain only accepts Bitcoin Cash as payment and Roger Ver who owns Bitcoin.com is pushing Bitcoin Cash on his website. Roger has a very large following, and rightfully so. He is a large proponent for why Bitcoin is where it is today. Bitmain is a major mining company which can choose to point an immense amount of hashing power at different chains, making one chain more or less attractive to mine from a profit standpoint. Meanwhile, the members that were behind the Segwit2X fork are also quite influential, one popular name being Jeff Garzik, a trusted Bitcoin developer. One controversial opinion is that the Segwit2X crew is joining forces with Bitcoin Cash for stronger influence. At the time of the cancellation, Bitcoin Cash began to surge, and not necessarily in an organic way. ~50% of all Bitcoin Cash volume from this spike is coming from only a couple of Korean exchange such as Bithumb, Coinone and Korbit. There was also surge in trading on a number of CFD crypto exchanges. For example, the crypto broker IQ option, Bitcoin Cash net longs were considerably larger than those of the legacy Bitcoin.

Why Invest in Bitcoin Cash

It is worth noting that any change has its trade-offs. There are many investors who believe in Bitcoin Cash. The main advantage to Bitcoin Cash's block size increase is that transactions move much quicker than the Bitcoin Legacy chain. This makes the currency use-case much more attractive. A consequence of larger block sizes is that mining becomes more expensive, and thus centralizes mining to conglomerates even more. This creates a less secure network from both a technical and social point of view. A final and important point to note is that it requires more than price action for Bitcoin Cash to take over Bitcoin. It is also an infrastructure change. This would require all exchange to use Bitcoin Cash as their base currency, thus changing the prices of altcoins. Given all of this information, the following questions still remain: Is Bitcoin Cash an improved version of Bitcoin Legacy? Is this organic? Will Bitcoin Cash take the kings crown from Bitcoin?

Published by Arina Smith