Bitcoin Cash’s First Year In Review: What’s Holding The BCH Token Back?
Will Bitcoin Cash Go Down the Drain or How Can It Come Back and Claim ‘Satoshi's Original Whitepaper Vision'?
Bitcoin Cash was the first forked project from Bitcoin that split off their exchange to their own platform. They are presently nearing their first anniversary, and they have been fortunate enough that they have been able to use nearly all of the infrastructure that setup Bitcoin. Coined as “Satoshi Nakamoto's Original Whitepaper” electronic cash system, BCH has experienced its ups and downs in its first year of existence from the hard fork creation.
Since its origination, Bitcoin Cash has been incorporated into BitPay, which is hosted on Coinbase, for all of the most major exchanges. As a result, Bitcoin Cash has not had to face the same challenges that many tokens have during the ups and downs of the market. Unfortunately, there is one way it has fallen short – use.
Despite the 10 million transactions that Bitcoin Cash has achieved the capacity for, it is barely being used at all. Much of the reason may be credited to their need to be tied in with Bitcoin Core. There is been a little progress, but the company seems to be stuck in the past, rather than seeking out their future within the crypto industry. While it makes sense that they have taken this path, it does not work with the market.
Every blockchain struggles with too much demand, which can sometimes amount to up to 100 billion transactions a day. By only having the availability for a few million transactions a day, investors are simply unable to get the performance they want. Furthermore, the current Bitcoin Core ecosystem does not believe in sharding, which would help them expand their scalability. However, the previous leading developer for Bitcoin Core, Gaven Andresen, believed that it was the more viable solution back in 2012 and 2013. He is back to help with Bitcoin Cash, but it is uncertain if he is going to go down the path he hoped for Bitcoin Core.
In order for Bitcoin Cash to run the nodes that they need to run, they need corporate support. However, it seems that the platform needs at least several million dollars to even establish the beginnings of mining blocks. Right now, developers have the option to download nodes, test them, and even launch separate form clients. Unfortunately, when the nodes are so expensive, there would be a severe lack of market control.
The expense could be something that some investors are willing to take on, but sharding would make it possible to lessen the cost. However, it seems that this idea has been completely pushed off the table. Both small and big blocks have their ways that they are right, but the fact that they are also both wrong is what is keeping this industry as a stalemate. The debate has gone on for so long that it is basically pointless and unnecessary to even have the argument.
The best way to get back the performance of BCH is by persuading consumers that the network has the power to scale but increasing block size does not seem the way to do it. The blockchain has not captured investors’ attention yet, which is partially due to the lack of scalability in the pass, and the fact that it is hard to say how long the performance will last.
Based on the previous performance of the market, solving the capacity deficiency can be done with lowering the need for on-chain transactions, which is often due to a fee boost. The on-chain use is directly correlated with confidence in the market, which would be the best way for BCH to handle their current issue.
Bitcoin Cash needs to worry about talking about their promotions and performance more, along with their future. By moving away from Bitcoin independently, they can speak about market acceptance, remittance, and even adoption.