It's happening. The anticipated war between Bitcoin and Bitcoin cash has begun, and it's intensifying. And this is different from the war in the Bitcoin community over making Bitcoin scale via Segwit2x, and threats of new hard forks down the road.
The hard fork which happened to the Bitcoin network on August 1st, 2017, is fast becoming a notable moment in the history of Bitcoin. On that day, Bitcoin cash was birthed, and since that moment it has been causing headaches in the Bitcoin community.
The disagreement is now between Bitcoin proponents and their Bitcoin cash counterparts as each battle for their coins to become the supreme one.
When Bitcoin cash came alive, it received little affection from the community and many quickly dumped their tokens for fiat, Bitcoin or other altcoins. It's believed that the coin would never mount a tangible competition to displace bitcoin from its crypto currency throne.
The coin had traded for less than $300 for the most part of its existence just until recently when it spiked, causing raised eyebrows and missed heartbeats. Bitcoin cash hit an all-time high of $1,091 before dropping steadily afterward.
The reasons for this rise is attributed to trouble with Bitcoin, its superior 8MB block size, its increasing mining profitability, and the confidence of some deep-pocketed investors in it.
What the players are saying
This new development- rise in Bitcoin cash price, is causing a war in the community. Each side claims their coin is the better version of the crypto coin and that the other coin violates basic rules of crypto currencies.
Proponents of Bitcoin cash, like Roger Ver, say Bitcoin is becoming obsolete and taking the network backwards because it can't scale. According to him, (and others) the 1MB on the Bitcoin block chains are being used to the maximum and these full blocks are damaging the network by causing high transaction fees and times.
Segwit is not a lasting solution but an 8MB block size, which is what bitcoin cash offers, they say.
They're also sceptical of how Segwit is splitting the blocks on the network to make transactions faster and cheaper.
It is only pertinent to find a lasting solution, they say.
On the other hand, Bitcoin core supporters say Bitcoin cash is not worthy to be a crypto currency. They accuse Roger Ver and other people with deep pockets of trying to centralize and hijack the market, which is not what crypto coins stand for.
They say these people pumped money into the market to drive its price up and win miners and the community over. According to market data, the bulk of trades for Bitcoin cash happened majorly in Asia, where a large quantity of the coin was bought with the South Korean Won.
Bitcoin proponents added that Bitcoin cash has little tech support and that 90% of it is mined by unknown entities. Some suggested that North Korea might be behind the whole exercise as its reeling from several restrictions placed on it by world powers.
Other say it is bankers and corporate entities who want to be in control of the market.
Effect on the market
This feud has had an effect on the price of both crypto coins. At the moment the Bitcoin market is going sideways, with prices fluctuating in the $4,050 to $4,200 range.
Bitcoin cash is also fluctuating, hovering between $700 and $800.
No one knows what will happen next. The future is uncertain. But if segwit, which just locked in on the Bitcoin network finally makes Bitcoin scale, Bitcoin will win and continue its upward trend.
If this doesn't happen, Bitcoin cash might provide real competition for Bitcoin.
And who says both coins can't find a place for each other on the crypto market?
Investors should just wait and see what happens. But if you've got a gut feeling things will end badly, get out of the market.
Interesting times ahead as the event continue to evolve.
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