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Bitcoin appeared during the age of financial collapse from 2008-2009. This year, while celebrating its tenth anniversary, it began experiencing a crisis. Although Bitcoin is considered one of the most mainstream cryptocurrencies nowadays, at the end of last year BTC lost its position when it hit a yearly low of $3,963. This happened because of unsupportive regulations, tech failures, and disagreements among developers.
Back in 2017, right after it forked from the main core code, Bitcoin Cash jumped to second place as the biggest cryptocurrency. All the rumors about BCH overtaking Bitcoin to become the number one cryptocurrency come from this time.
Many other altcoins, like Litecoin and Dash, started pushing for first place too. Like BCH, they appeared to be more convenient for small transactions, as well as everyday uses. Thus, they seemed more attractive to investors.
Today, at the beginning of 2019, Bitcoin Cash holds sixth place among cryptos in total market cap. And still I believe, if there is an asset that can take the place of Bitcoin, it would be its younger brother. They have the same origin and name, but BCH has some advantages over the original coin.
Let’s talk about them.
Can Bitcoin Cash Really Surpass BTC?
So, let’s theorize whether Bitcoin Cash really can surpass Bitcoin, and figure out the causes and prerequisites for this to happen. As a clone of BTC, BCH has many similarities with the classic token. But there are also essential differences, and the most important one is the size of the block.
BCH’s block size is 8 MB, which is 8 times bigger than BTC’s normal block size. BCH’s larger blocks can include more transactions and make transactions quicker. This is why a lot of businessmen and companies have had their attention focused on BCH and have started working with it. The price charts depend on how many investors use the coin, and the more that do so, the higher the value. Thus, if Bitcoin Cash becomes cheaper and faster than BTC, it can displace the top crypto from the lead.
Many famous Bitcoin experts see Bitcoin Cash as a better alternative to Bitcoin, as does Roger Ver. In the beginning of 2018, he said that the younger crypto will surpass the older one because it has more utility and usability, while the BTC system is slower, overloaded, and imposes high fees. They are direct competitors, because BCH is based on the same codebase, but provides its users with some notable advantages. Ver is sure Bitcoin Cash has a great future and believes it will overtake Bitcoin in popularity and market capitalization rather soon, thanks to its stability and growing acceptance.
We should not forget about miners. With all the mentioned benefits, BTH (another abbreviation for BCH) became more profitable to mine, increasing the number of miners on the Bitcoin Cash blockchain, and subsequently decreasing their number on the BTC network. Thus, there were thousands of transactions pending in the Bitcoin unconfirmed pool, and sometimes the amount soared up to 100,000.
What else makes Bitcoin Cash a successor of classic Bitcoin?
Here is what I think.
- Just like BTC, BCH successfully solves the problem of double spending.
- Bitcoin Cash provides instant transactions, using the same process described by Satoshi Nakamoto in his whitepaper for Bitcoin. Unfortunately, the classic bitcoins may take an hour to get from one wallet to another.
- And most importantly, you can have free-of-charge BCH transactions. Bitcoin also used to provide its users with this opportunity, but has been minimized over time, negatively affecting small BTC transactions.
Yes, Bitcoin Cash has some significant advantages over the major cryptocurrency. Yet, the latter is not going to give up easily.
Implications of a BCH Takeover
So, the main question is whether a BCH takeover will ever happen, and if so, will the results be positive. In my opinion, it won’t be bad news. Individuals and companies need more stable, reliable, and high-tech cryptocurrencies. Bitcoin Cash is obviously superior to Bitcoin at this point. We’ve talked about its positive sides, but let’s sum up.
- Larger block size allows more transactions per second, almost three times more than BTC blockchain miners can accomplish.
- This leads to quicker and easier mining.
- Being a familiar, traditional Bitcoin, BCH is cheaper and easier to send and receive.
This all makes it the best money to spend in everyday usage. People who need digital currency just to do online shopping or use it as payment for their goods and services, may prefer Bitcoin Cash rather than BTC, which is used more for storing value.
Bitcoin Is a Tough Guy
In conclusion, let’s see what we can expect in the near future. Do not wait for rapid change. As GSR co-founder Cristian Gil says, it’s hard to make forecasts as the space is developing very fast. But since Bitcoin was the first, it has played a fundamental role in the cryptocurrency financial revolution.
As for me, I’m sure that it will remain on top because it is time-tested with many investors. Do you know any investor who wants to lose his money? Me neither.
The CEO of Ambrosus, a blockchain-based company that measures and records information along the supply chain, hopes that decentralized cryptos will not be surpassed by digital assets that are under the control and censorship of a few personalities and entities. To avoid this, people need more education and information about how things work in the crypto world, and why it is much better for all.
BCH, meanwhile, is characteristically closer to centralized currencies, because one of the ramifications of the bigger block size is a miner’s need for more gigabytes to store the data. Yes, mining Bcash is still easier than Bitcoin, but it can create large groups of miners who work together in order to cut corners on the equipment costs. Such teams may have notable influence on the cryptocurrency, contradicting the entire idea of Bitcoin as a currency that’s free of regulation and manipulation, transparent to and governed by all users.
Is There Any Competition?
Also, it must be mentioned that despite certain benefits, BCH cannot replace BTC completely. Bitcoin transactions are slower, and its mining is more complicated, but it makes the coin more valuable and profitable in the long run, while fast and cheap deals can lead to devaluation. Traditional BTC remains the best way to invest money in cryptocurrencies, and some even call it virtual gold. Regardless of all the problems it had in 2018, its total current value is over $87 billion dollars. So, even if Bitcoin Cash replaces Bitcoin some day, a very long period of time has to pass.
Personally, I think these two cryptos have different futures. BTC will remain the store of wealth and the long-term investment instrument. New users, and those who do not want to waste time and money on transfers, will stick with Bitcoin Cash. Some online analysts say that BCH is a Bitcoin for greedy people. I believe it can be more suitable for average users who simply need some digital money to spend without delays, borders, and restrictions.
John Ryan has been a cryptocurrency writer for four years. His main focus is new developments and analysis in the cryptocurrency world. You can find John’s other articles at BitcoinBestBuy.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.