Why Bitcoin Cash might replace Bitcoin in the future?
Bitcoin (BTC) is a blockchain legacy that began 8 years ago. Whereas, Bitcoin’s hard fork gave birth to Bitcoin Cash (BCC) on Agust 1st, 2017. While Bitcoin is a revolution and a brand name in the market, BCC is deemed to be more close to Satoshi’s original vision for this currency. After the fork, Bitcoin holders got the same amount of BCC. This has given rise to more competition, as with all the resources available, miners only have to decide which is the efficient one.
While BCC has the same base and security as Bitcoin, it more efficient and energy-saving. But Bitcoin loyals believe that Bitcoin’s core values are not as easy to replace. According to experts, “the overall trend is pro-BTC and less pro-BCH” currently. But there are many factors that need consideration before concluding which one is better.
The opinions have largely changed in these past few months. While in August and September, miners were claiming that BTC is irreplaceable forever; lately, they have started counting the benefits of BCC.
Bitcoin has become quite popular, and this is exactly the issue. Transactions on the Bitcoin blockchain have increased to around 400,000 per day. This has severely delayed transaction speed and caused the transaction fee to rise. It takes “an hour and around $30” per transaction now.
The Bitcoin Cash came to address these problems and “to increase the block size limit in an attempt to increase transaction processing capacity”. BCC is what Satoshi had in vision, “a store of value and means of exchange”. So users are switching to BCC, where transaction volume is less. The transaction speed is high and the fee is low, making it more efficient and profitable.
Large Energy Consumption by Bitcoin
It is well known that Bitcoin mining uses a LOT of energy. It uses more power than 159 individual countries in the world. Its current energy consumption per year is 32.7 TWh, and this number is increasing every year. Not only is this uneconomical and wastage of energy, but a serious environmental alarm too. At this rate, it is probable that national governments or international agencies might put ban or restriction on blockchain mining.
Opposed to BTC’s power consumption, BCC utilizes less energy. Bitcoin’s large power consumption comes from the number of transactions processed by it. For every transaction per block, the energy consumed depends upon finding the block. But since the block size of Bitcoin is limited, a large amount of energy is consumed.
Whereas in Bitcoin Cash, the block has been raised to the size of 32MB, making it 32 times more efficient than Bitcoin. So users are switching to BCC to save money on electricity.
The cancellation of Segwit2X fork
As the Segwit2X update was officially canceled in November, the price of BCC doubled to $2.200 USD in just 24 hours. It temporarily replaced Ethereum as the second-largest cryptocurrency, with a total market cap of more than $30 billion USD. In fact, soon after the cancellation news, the mining power of BCC surpassed BTC for a day.
Bitcoin witnessed quite a number of forks this year. This happened because of the popular demand by the community to decentralize the Bitcoin blockchain where it was dominated and centralized by a few. So, three forks were planned for the year – Bitcoin Gold (BCG), Bitcoin Cash (BCC) and Segwit2X. However, when the Segwit2X fork got canceled, the supporters moved to BCC instead.
Bitpay supporting BCC soon
Bitpay is a wallet that currently supports Bitcoin. It has announced that it will be starting payment support for Bitcoin Cash in 2018. This is a big news for BCC. While there were many miners and investors, who withdrawing from Bitcoin (because of the above reasons), they faced difficulty in searching for an altcoin. With BCC on Bitpay wallet, it will be easier to switch.
However, even though Bitcoin Cash is a better version of Bitcoin, but the market still remains in Bitcoin’s favor. This is obvious from Bitcoin’s value, which grew by 1000% this year and the market saw its highest value ever at almost $20,000 USD per BTC. According to a marketing strategy, “consumer behavior is largely influenced by brand. And Bitcoin is more appealing brand than Bitcoin Cash.” It has built up consumer trust within all these years, and it would be difficult for a new cryptocurrency to overtake this in a few months.
Also, Bitcoin is the “digital dollar” in the cryptocurrency world. It is used to exchange most cryptocurrencies on most digital exchanges. In many cases, Bitcoin is bought with cash, and then the other cryptocurrency is bought with Bitcoin. This is also partly responsible for driving up Bitcoin’s prices. If Bitcoin Cash replaces Bitcoin as the “digital dollar” in future, its chances of dominating the market will rise.
In the end, it all depends upon the upgrades and how miners and investors view the coin. While the demand for Bitcoin is skyrocketing lately; Bitcoin Classic claims that BCC will become more prominent than BTC in the next six months.