Cryptocurrencies have a funny way of being extraordinarily theoretical, until that is, the digital markets actually impacts you. Then and only then does the lightbulb finally goes off.
The uproar over Bitcoin and Bitcoin Cash is a perfect example. Long before cryptocurrencies were publicly discussed, Bitcoin advocates had the benefit of enjoying a revolutionary platform that functioned at lightning speed. Syncing a wallet would take hours, not days. Transfering wealth from one party to another occurred in mere seconds.
Scalability was not discussed within the Bitcoin community, partly because very few actually believed that cryptocurrencies would explode in popularity the way it has — otherwise, no one would sell a single blockchain asset until now! Thus, Bitcoin benefitted from a conflation of circumstances.
But as public integration of cryptocurrencies increased, the limitations of the Bitcoin blockchain became apparent. Wallet syncing would drag into multiple, power-sucking days, while transactions would become shockingly long and expensive. Bitcoin Cash really came about because of a lack of consensus on what to do with the problem.
However, the problem isn’t readily apparent for crypto-newbies and especially blockchain outsiders. They have to actually experience the frustrations and setbacks for themselves before they can appreciate the ongoing Bitcoin and Bitcoin Cash debate.
Having helped bring the blockchain opportunity to many investors, I know firsthand how incredibly slow the Bitcoin network can be. Literally a half-day could go by without a single confirmation on the most basic of transactions.
In these experiences, I found myself shifting towards Bitcoin Cash and its potential for taking the original blockchain’s mantle.
Currently, Bitcoin Cash is what Bitcoin set out to be. Bitcoin Cash is lightning quick. Its architecture is built to handle increasing traffic volumes. Moreover, the offshoot currency has a growing number of acceptance among retail establishments.
No wonder! Retailers are the perfect beneficiaries of cryptocurrencies. Rather than being forced into onerous contracts with the big credit cards, they can instead align with the blockchain. The synergies are obvious: low cost, rapid-fire transactions.
Unfortunately, the Bitcoin blockchain hasn’t “lived up” to its fair share of the bargain. At this rate, Bitcoin is slow, unreliable, and surprisingly costly. Retailers don’t necessarily need to know why this is so; they just know that it is.
Hence, Bitcoin Cash stands as a ready alternative for the retail establishment. That does not mean that Bitcoin is irrelevant. As the pioneer within digital markets, Bitcoin has a level of credibility that may never be supplanted. I see this virtual currency being recognized as a high-level safe-haven asset and as a general store of wealth.
But as a practical, everyday mechanism, Bitcoin Cash has few real competitors. Leveraging the Bitcoin “brand name,” along with much-needed improvements, Bitcoin Cash could just as easily challenge five-digit dollar territory in a few years time.