While everybody talking about Bitcoin and try to find a way to buy some share, yet more the mainstream media mentions only to Bitcoin, Bitcoin cash which is a cryptocurrency that has the third biggest market share after Ethereum, stroked a blow four days ago by even stealing the market cap of other cryptocurrencies and raised its value from 600$ to 2500$ and then regressed it back to 1300$.
But what is this Bitcoin cash and why it’s suddenly appreciated that much? Bitcoin Cash has born on August 1 against Bitcoin Core team’s desire to keep the block size at 1mb limit and Segwit2x update by a large group of people who left the original chain and created their own coins with 8mb of block size.
Bitcoin Cash, which could not reach the value it deserved in the beginning, proceeded to an attack last week after the cancellation of Segwit2x as an outstanding alternative among large scale blocks. Leading cause of this attack, which came somewhat from manipulation and somewhat from market tendency, happen to be the deceleration of the transaction speed and augmentation of remittance fee due to excessive use of Bitcoin. Bitcoin developers believe that this scaling factor can be solved by completing the Segwit adaption and integration of a new method called “lightning network” instead of increasing the block sizes. On the other hand, these solutions seem to take long time and Bitcoin Cash offers an alternative which can carry out transactions quite fast and with low transaction fees. Of course, Bitcoin Cash also has some disadvantages. Especially Bitcoin Cash being under the control of certain minority and be managed as a company, creates a contradiction to its main philosophy of decentralization.
Under these conditions, Bitcoin generates a better store of value as a “digital gold” while Bitcoin Cash stands out as a “digital currency” with low fees and fast approval times. Keeping your savings safe or being able to buy coffee with them? Deciding which one is more important is totally up to the market and only the time will show us the consequences.