November 13th, 2017
In my humble opinion...
Are we watching the flippening?
— Vitalik Buterin (@VitalikButerin) November 12, 2017
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What the f*ck is happening with Bitcoin Cash?
ICYMI, a lot of stuff happened over the weekend involving Bitcoin Cash (BCH) and the several Bitcoin forks. First off, Segregated Witness 2X (AKA, SegWit2X) was put on ice, after the founders said that they "ha[d] not built sufficient consensus for a clean blocksize upgrade at this time", but will likely restart the project after replay protection is implemented – we'll see about that. There was also some, uh, pretty intense backlash after the fork was suspended indefinitely (people who lose money generally aren't very happy). Immediately after this, chaos ensued.
Bitcoin Cash's price multiplied by almost 4x in a matter of two days due to a combination of factors including but not limited to: Korean exchanges, a devout act towards Bitcoin's creator, Satoshi Nakamoto, Bitcoin's flailing price after SegWit2X's failure, while some people are trying to position Bitcoin Cash in second place in terms of market cap. Several of our sources simply said that they were waiting for Bitcoin Cash's dip...that seemingly never came. In what is considered to be a "cash pump" (an influx of money into a currency to artificially inflate the price), BCH's price peaked at a shocking $2,500 and has been holding at around $1,200 for the past 24 hours. Hot damn. Is this the beginning of legitimizing Bitcoin forks?
What does this mean for Ethereum and Bitcoin's notorious scaling problem?
Bitcoin's been dealing with a lot of backlog problems as of late, which essentially means that more transactions have been put on the ledger than cleared (there are more buys and sell orders than there are miners to confirm these transactions). The biggest implication of this fork is that Bitcoin Cash, generated in the first Bitcoin fork, could overtake Bitcoin as the cryptocurrency with the largest market cap and basically replace Bitcoin as the most used digital currency in the world. Some companies, such as the Roger Ver's-supported crypto wallet, Bitcoin.com, have already taken steps to replace BTC with BCH, and are now referring to BCH as "Bitcoin". Ballsy, if you ask us. The preference to use BCH over BTC stems from BCH's mission to be closer to Satoshi's original purpose for Bitcoin, as well as faster transaction processing times and lower transaction fees for users and higher profitability for miners.
Ethereum and Bitcoin (BTC) are both struggling with scaling solutions, with Ethereum's founder Vitalik recently vocalizing his thought process around attempting to decrease the token supply to differentiate it from fiat currencies, employing measures such as future burnings (deleting tokens to prevent hyperinflation). Bitcoin itself has a major transaction problem. As the network increases, the block sizes have stayed the same: 1MB. Thus, transaction times are significantly slower, transaction fees higher, and some experts think that requiring a lightning network – a way to pay people to process your buy or sell transactions through a private channel – and may become eventually necessary. So, how do you create a global growing market with a product that isn't built to be scaled? We're pumped up to see what happens.
Fun fact: like any startup, not all ICOs survive. In fact, only about 8% have a "high longevity".
Bitcoin Cash overtook Ethereum in market cap yesterday for a brief moment, displaying yet another market-shaking "flippening" (see Vitalik's tweet at the beginning).
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Coin to Watch
Understandably, our coin to watch is most definitely Bitcoin Cash (BCH). Look out!
— Heidi (@blockchainchick) November 12, 2017