Leading VC: Entry of Tech Companies like Facebook Leaves Little Room for Bitcoin Cash
BTC will dominate, BCH however, will die off.
— Max Keiser, tweet poet. (@maxkeiser) June 9, 2019
Bitcoin came about as both an alternative currency and political tool to decentralize the financial space. However, the coin soon had issues of scalability and cost as it got more popular. Moreover, mining soon became expensive and saw this activity remain profitable for only a few sophisticated miners.
Some within the Bitcoin community saw an opening for a Bitcoin fork. This is because of the rising transaction fees that made investors and developers like Roger Ver take the initiative to create a splinter coin. As such, these advocates created a hard fork to increase the block size.
This drive was positive because many in the BCH faction wanted Bitcoin to remain primarily a transaction medium. The reason for this is because the coin was mostly a commodity for store of value. However, Bitcoin Cash has had only modest gains; trading at about $300 dollars now. This means that it is not exactly the Bitcoin alternative it should have been. Moreover, Bitcoin Cash had a separate fork in November 2018.
The Problems with Roger Ver
Roger Ver was the most notable advocate for Bitcoin cash. His motivation, however, noble have not brought any unity whatsoever to the new coin. The major reason for this is Roger’s abrasive style. As such, the jury is still out on his impact on Bitcoin in general. However, it is clear fact that he has rubbed some people the wrong way in due course.
Bitcoin developer and entrepreneur, Jimmy Song, talked of Ver as follows:
“To him, control over a particular thing is more important than bringing self-sovereignty to the world or allowing people to control their own money. It’s all about him, that’s what that whole debate was about. It wasn’t about the merits of Bitcoin Cash or any of the actual economic theory, it was about him. He even said during his debate later on with Tone, that he was the one who made Bitcoin popular and he was going to do the same with Bitcoin Cash.”
Nonetheless, Ver appears to be genuinely interested in growing and advocating BCH. Co-opting the Bitcoin brand could however turn out to be a stagnating factor in growth efforts. Moreover, the Schnorr signatures implementation to promote scaling and privacy raises centralization concerns. BCH, therefore, faces a plethora of challenges from leadership, intrinsic and other extrinsic factors.
Effect of The Entrance of Institutions Like Facebook
Facebook recently announced plans to enter into crypto and this announcement obviously caused waves within crypto. The nature of such a large institution will mean that this coin will have a significant market presence from inception. As such, the Facebook entry will probably rival Bitcoin in ways that no other altcoin has been successful in.
This is definitely concerning for Bitcoin Cash, which though better and more scalable than Bitcoin, lives in the shadow of its famous namesake. The publicity the Facebook ‘Global coin’ gains will be devastating for the likes of BCH looking to establish a foothold. Moreover, the entry of Facebook raises issues of control and the need for more decentralization in the market. These will be interesting topics in the short-term as crypto-sphere reacts to the entry of Facebook into the market.