The most famous fork of all time in the world of cryptocurrency was when Bitcoin Cash (BCH) split from Bitcoin (BTC). A fork is when a change is made to the technology of an existing coin and takes it in a new direction. Most forks generally don’t compete with the main currency that they broke away from, but BCH has proved itself to be a solid cryptocurrency in its own right and made many Bitcoin investors buy Bitcoin Cash as well.
Bitcoin is still the dominant player in the market and will be for the foreseeable future. There is now a brand attached to it, and when people think about cryptocurrency, they automatically think of Bitcoin. The likes of Ethereum and Ripple will continue to suffer from this until the reputation of digital currency grows, but Bitcoin Cash has the advantage of attaching itself to that brand name.
Will Bitcoin forever be the most dominant cryptocurrency? Well, we’d actually say that it’s unlikely. Just like with Ford or Hoover, the companies that created the boom in their own industry eventually get caught up and overtaken by their rivals, despite remaining strong companies themselves. While it may seem dominant now, there will surely be a time where Bitcoin is overtaken by one of its rivals.
So if Bitcoin is going to be overthrown, who will it be by? The likes of Ethereum and Ripple mentioned are contenders, but they still have a long way to go. They, and many other currencies, all have their advantages and in many ways are better than Bitcoin. Bitcoin Cash has a great chance as it is seen by many as a better currency than Bitcoin, but still has that brand name attached.
A lot of the reasons that it is seen as a superior coin comes down to the speed of the transactions and the low costs involved. The problem with Bitcoin in the first place was the size of the blocks in the blockchain. This slowed down the process and increased the cost of transferring currency. The 1MB block size wasn’t enough, and while Bitcoin has taken steps to alleviate the problem, it couldn’t stop the hard fork that created Bitcoin Cash.
Bitcoin Cash was created with blocks that were 8MB, which allowed for a lot more information to be sent and a lot quicker. This was a vast improvement, but it’s not just the size of the blocks which determine whether a currency will be successful or not, as many other factors are involved. Bitcoin is well ahead of the game in terms of its software options and the wallets it provides. And it still remains a much more polished coin.
The problems with the block size
The larger block size might seem like the perfect solution, but as it increases in scale, it might develop some problems as well, due to the need for storage space. In order for someone to run a mining unit, they would have to download the whole of the blockchain, which takes up a huge amount of memory. If Bitcoin Cash’s blocks start nearing their capacity, then the blockchains will only get bigger and bigger.
Due to the amount of memory required and the costs involved, this will continually decrease the number of people who are able to mine the coin. This would result in what many perceive as a big negative, as it would partially centralize the coin. One of the greatest advantages of Bitcoin is how decentralized it is. Many people love digital currency as it takes the ownership of an economy out of the hands of centralized banks, and anything that is seen as a move in that direction is viewed negatively.
For another currency to overtake Bitcoin, you feel there has to be a revolution in the way that the majority of the public view digital currency. At the moment, it is still only a very small percentage of those who understand what a digital currency is and how it works, and an even smaller percentage actually owns any coins.
For the people who are unsure, Bitcoin is the big brand name, and that will make them feel comfortable about investing. That brand awareness will keep Bitcoin high for a long time. Imagine, however, that there will be a change. As more and more people become more comfortable with the technology and its place in the world, they will open themselves up to more and more coins.
It’s at that point when cryptocurrency enters into everyday life that Bitcoin might face more fierce competition from their rivals. For a coin like Bitcoin Cash, the revolution won’t happen overnight, and it will have to continually prove that it’s better than Bitcoin. Investors are still loving the coin, however, only as long as it is seen as a sound investment which is only expected to increase in value over time.
The Bitcoin Cash fork has undoubtedly been a success, but it is still by most measures around 10 times smaller than Bitcoin. It’s a huge gap to close, and it’s hard to imagine a point where it will ever close it. The competition is vast and there are new coins coming onto the market all the time.
Bitcoin reigns supreme, for now. It’s going to be a fascinating journey to see how long it can stay at the top, but given its current lead over every other coin, it might be quite a while until it’s toppled. Will Bitcoin Cash be the one to topple it? It seems unlikely; Bitcoin is a well-polished and trusted coin which has ironed out many of its flaws. You feel that if any coin was to take that number one spot, it will be an entirely separate one, and maybe one that hasn’t even been created yet.
It could be, though, that Bitcoin Cash takes us by surprise and continues its growth while Bitcoin hits a slump. The volatile world of cryptocurrency is always hard to judge and there have been many surprises over the last few years. Stil, Bitcoin Cash will be hoping they can surprise everyone again by overtaking their big brother.