The Bitcoin Cash (BCH) Hard Fork Is Over 500 Days Old, But Did It Hurt or Harm Bitcoin’s Legacy?
After 17 months after the hard fork that affected the Bitcoin (BTC) network, Bitcoin Cash (BCH) does not seem to be prospering and growing as expected by some of its supporters. Although there are several enthusiasts supporting Bitcoin Cash, the truth is that the network is not growing and performing as many would have liked.
According to data from Coinmetrics, Bitcoin Cash is behind Bitcoin in terms of transaction volume and active addresses. While Bitcoin active addresses remained stable throughout 2018, the number of BCH active addressed experienced a steady decline during the last year. Furthermore, the block that Bitcoin Cash aimed at improving was never close to its limit.
During the last 500 days, Bitcoin Cash proponents have been trying to explain why Bitcoin Cash is better than Bitcoin, but the adoption has resulted to be slower than expected. Bitcoin Cash proposed larger blocks compared to Bitcoin something that would allow the whole network to scale without having to be worried about higher fees or slow transaction times.
Back in December 2017, Bitcoin experienced several congestions. Indeed, the network had very high fees and slow transaction times. This has affected the whole network, and even other digital asses were congested, including Ethereum (ETH). Bitcoin Cash aimed at offering cheaper transactions with larger block size.
According to the data provided by Coinmetrics, Bitcoin Cash had an average block size of around 171 KB since August 2017, when it forked from the Bitcoin network. Bitcoin instead had an average block size of 934 KB. This shows that the potentialities behind Bitcoin Cash have not been used. Indeed, Bitcoin Cash is just using 2.1 percent of its block capacity. Furthermore, it is just 18 percent of Bitcoin’s block size.
Additionally, Bitcoin Cash experienced a new hard fork at the end of 2018. In November last year, Bitcoin SV (BSV) forked from the Bitcoin Cash network and created its own chain. This has lead to a larger division among Bitcoin Cash supporters. Roger Ver and Jihan Wy have been backing Bitcoin ABC proposal for Bitcoin Cash, while Craig Wright and Calvin Ayre supported Bitcoin SV.
Another thing to take into account about Bitcoin Cash is the fact that its market capitalization is just 3.51% of Bitcoin’s market cap, showing that the effect that it had on the network was very limited.