The debate between Bitcoin and Bitcoin Cash is raging. Both sides are flinging mud at the other. Here’s everything you need to know about the ongoing debate.
What Are BTC And BCC?
BTC and BCC are two possible forks for the bitcoin blockchain. Bitcoin (BTC) is the bitcoin we’ve known and loved for years. It’s the main development path for bitcoin. Bitcoin Cash (BCC), on the other hand, is a proposed hard fork that claims to be closer to Satoshi’s original vision for the currency.
In the leadup to August 1, there’s enormous controversy over the validity of BCC. We won’t know if it will be a valid currency until August 1. Within a few hours of SegWit activation on August 1, BCC could be worth pennies. However, if mining companies start devoting hashing power to Bitcoin Cash, then it could be a genuine, usable currency with better scalability than the “original” Bitcoin. It could quickly exceed the value of bitcoin and become the default online currency.
Bitcoin Cash is led by a client called Bitcoin ABC. This past Saturday, the Bitcoin Cash project leaders announced they were going ahead with their fork on August 1.
What Is Bitcoin Cash?
Bitcoin is the original version of bitcoin that we’ve used for years. Bitcoin Cash is a proposed fork of the bitcoin blockchain. Supporters of BCC believe that SegWit is attacking some of bitcoin’s fundamental strengths – like its decentralization and democratization. They believe SegWit2x is being led by individuals with ties to shady organizations, and that SegWit2x will be the end of bitcoin as we know it.
Bitcoin Cash plans to solve that problem. The most important thing you need to know about Bitcoin Cash is that it allows for custom block sizing. The “ABC in Bitcoin ABC, in fact, stands for “Adjustable Blocksize Cap”. That means users can determine their preferred blocksize accordingly. By default, the blocksize is set to 2MB, with scaling possible all the way up to 16MB.
When you visit the official BCC website, you’ll find that their definition of their currency is identical to Satoshi’s original vision for the currency:
“What is Bitcoin Cash? Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.”
Why Are People Suddenly Surprised By Bitcoin Cash?
The bitcoin community has been in turmoil throughout the month of July. The Bitcoin Cash fork has caught many people by surprise.
Many people thought that the Bitcoin Cash fork would only trigger if BIP 148 were able to split the network. In other words, Bitcoin Cash (and its client, Bitcoin ABC) was just a credible threat to prevent a hard fork.
BIP91 (the first part of SegWit2x) locked in and activated last week. BIP148 is scheduled for August 1.
After BIP91 locked in, most people assumed the possibility of a hard fork was over. However, Bitcoin Cash supporters had other ideas.
If You Own Bitcoin, You Own All Bitcoin Forks
Here’s the most important thing the average bitcoin user needs to know about this latest controversy. If you maintain control of your private keys, then you can choose your bitcoin fork.
In other words, if you keep your bitcoin in a wallet where you control your own private keys (i.e. they’re not controlled by the exchange), then you’ll own both Bitcoin Cash (BCC) and Bitcoin (BTC).
At this point, most users recommend storing your bitcoins before August 1 and waiting to see what happens. Let the markets dictate demand. Let miners devote their hashing power to the most profitable option. Then, once the dust has settled, you can choose whether you want to turn your legacy bitcoin into Bitcoin (BTC) or Bitcoin Cash (BCC).
If you have 5 BTC before the fork, then you’ll own 5 BTC or 5 BCC after the fork (assuming you’re holding bitcoins off an exchange, and you’re in control of your private keys). It’s as simple as that.
Is BCC Worth Anything?
If you think BCC isn’t worth anything, check again. You can buy BCC futures today on ViaBTC, where they’ve been consistently trading between $200 and $900 since being introduced.
Users are buying BCC today with the expectation that it will rise to the value of today’s bitcoin (or higher) in the future. They’re gambling on the fact that miners will support BCC after August 1, and that the currency will have enough hashing power to compete with the other fork.
So yes, BCC is certainly worth something. It’s trading at about 1/5 to 1/7 the value of Bitcoin at the moment. Obviously, there’s a tremendous amount of risk attached to the coin (like the fact that it doesn’t currently exist), which is why it’s a volatile marketplace.
Careful Where You Read: Censorship Is Rampant
One of the biggest problems with the BTC versus BCC debate is that censorship is rampant. One of the internet’s largest bitcoin communities, Reddit.com/r/bitcoin, has been actively removing any comments mentioning BCC as the future of the bitcoin blockchain.
The website’s competing subreddit, /r/BTC, has become an uncensored hotbed for BCC discussion. If you want to get an informed update on the latest news in the BCC versus BTC debate, make sure you check multiple sources.
It’s important to note as well that both sides are calling the other scam artists, or mentioning ties to shady organizations. The BCC supporters seem to believe SegWit2x supporters are all paid by corporations, while SegWit2x supporters seem to believe that BCC is a Ponzi scheme. As with anything on the internet, take everything you read with a grain of salt.
BCC Vs BTC Conclusion
Stay tuned until after August 1 to see what happens with bitcoin’s blockchain. We could have one single main bitcoin. We could have two bitcoin forks, each of which is valued in different ways. Or, we could have three versions of bitcoin. At this point, your guess is as good as anybody’s.