There is an undertone of rivalry between Bitcoin (BTC) and Bitcoin Cash (BCH) within the cryptocurrency ecosystem. This impression seems to be as a result of the circumstances that led to the creation of Bitcoin Cash (BCH), a fork of Bitcoin (BTC). Different groups and individuals on the overall network have their preferences towards these two major cryptocurrencies. The essence of this post is to elaborate on the 4King stance on the Bitcoin and Bitcoin Cash dilemma.
Bitcoin Cash is a fork of Bitcoin. It came into being in 2017, after a prolonged debate on the Bitcoin scalability issues. The scalability issue became more pronounced after the original Bitcoin network become congested as a result of increased participation. This caused a number of unwanted problems in the network that included slow transaction execution and increased transaction fees. The implication of these was that Bitcoin could no longer compete as a payment instrument in the mainstream.
In seeking a solution to this problem, the original Bitcoin community became divided into two major groups. One group proposed a solution that involved the separation of transaction data from the actual transaction, while the other group was of the opinion that the blocksize should be increased.
The disagreement led to a hard fork that gave birth to Bitcoin Cash. Ever since, different groups in the community seem to be taking sides, based on how each of the two cryptos suit their purposes. Now, here is the 4King stance on the Bitcoin and Bitcoin Cash dilemma.
Bitcoin is a Store of Value
Bitcoin has earned the reputation of being an investment instrument as a result of its high tendency to appreciate in value. This reputation has also earned it the nickname “digital gold”.
Part of Bitcoin’s original design is for it to be an alternative kind of money. But for scalability issues, 4King considers store of value as a more appropriate implementation for Bitcoin.
Bitcoin has a limited supply as only 21 million. Although not all of these coins have been mined, the mining difficulty double every four years. This means that the rate of introduction of new coins into the network reduces by 50% periodically.
Economically this creates scarcity, resulting in increased demand and appreciation in value over time. Not forgetting the fact that as awareness grows, more users get into the network. This also is a demand-increasing factor that projects a future increase in price for Bitcoin.
Bitcoin Cash is a Payment Method
At 4King, while we see Bitcoin as a store of value, Bitcoin Cash is considered to be a payment method. The reason for this is simple and straightforward – “Bitcoin Cash is more scalable at this point in time”.
Based on the narration above on what led to the creation of Bitcoin Cash, and how the cryptocurrency was created, you will understand that the focus is on faster transactions. Unlike Bitcoin whose transaction speed is 7 tps, Bitcoin Cash averages 116 transactions per second.
Both Bitcoin and Bitcoin Cash serve different purposes that are of useful benefits to humankind. Value storage and ability to make convenient payments are two valuable economic factors. This implies that both Bitcoin (BTC) and Bitcoin Cash (BCH) have important roles to play distinctively.
What we have currently within the crypto community seems like a fierce rivalry between the proponents of the two cryptocurrencies. The communities have been engulfed in the argument on which of the cryptocurrencies is better. Based on the analysis above, you could deduct that such rivalry is likely unnecessary, since each coin can fulfill specific needs in the industry.
Although 4King is bullish on Bitcoin (BTC), it also recognizes the enormous value that is embedded in Bitcoin Cash (BCH). However, the 4King stance on the Bitcoin and Bitcoin Cash dilemma remains that Bitcoin (BTC) is a store of value, while Bitcoin Cash (BCH) is a payment method.