When Bitcoin originally planned to fork on Aug. 1, there was much fear and worry about the future of the original chain as the civil war raged on. However, the split happened, and Bitcoin Cash was born, but there was hardly any disturbance in the force.
In fact, soon after the fork, Bitcoin rallied and hit new heights as Bitcoin Cash was mostly seen as free money to be sold as soon as possible. In fact, many exchanges were debating about even supporting it.
Bitcoin Cash was mostly berated as a money making scheme and a waste of time, but suddenly, over the last weekend, it all became quite relevant.
What niche is Bitcoin Cash filling?
As the name suggests, Bitcoin Cash, with its larger blocks is intended to be able to handle transactions cheaply and quickly – like cash. However, building a coin that comes out as a payment network before it is a liquid asset offers up plenty of challenges.
A payment system needs stable liquidity, and that stability cannot be reached if you aim to be a payment network before you are an established asset. Bitcoin Cash also, as a potential global payment system, needs adoption and acceptance, something it has also been lacking.
But as Bitcoin’s monstrous growth has continued and Bitcoin Cash’s stayed relatively still, a new problem was emerging with the original chain.
The scaling was not over, Bitcoin as a payment network was still failing. It was digital gold and something needed to be done.
The SegWit2x failure really showed how people saw Bitcoin – they were after it for its digital gold status and its massive growth as an investable asset. Why would you spend something that keeps growing? […]