The price of Bitcoin Cash rose some 30% yesterday after the currency went through the fastest bull and bear market, as well as despair, seen in this space.
The currency initially opened with a brief sell-off to a bottom of $130. Then, a bull run ensued with everyone buying as no one was sure of the initial price for Bitcoin Cash, sending it to an all-time high of $800.
That was followed by a sell-off once deposits opened. In anticipation, no one was buying, waiting for the insta-dumb which lasted for around 3-4 days.
What could be called despair was observed yesterday and, to some extent, the day before, with some publicly lamenting, but more acute traders may have noticed the selling apparently subsided as price somewhat stabilized.
Confidence thus seemingly returned, with price starting to rise today, up from around an apparent recent bottom of $240 to a current trading price of around $350 on Kraken.
No one can quite predict how price will behave, but a re-test of the all-time high might be on the table as confidence seemingly returns with realization drawing in that big blockers can now do all the things they wanted.
Initiating a node, for example, is currently a slow process, but pretty fast for ethereum which has magnitudes more nodes than bitcoin, standing at some 30,000 to bitcoin’s usual 7,000.
The reason for the discrepancy might be less because ethereum could have better developers – although they are very competent coders and some of the best in the entire space – and more to do with their focus on on-chain scaling rather than primarily second layers.
Likewise, a cool new thing that Bitcoin Cash may bring back is scripts. Smart contracts was a bitcoin thing long before ethereum came around, but Bitcoin Core developers disabled many scripts – which allow for codeable transactions – for one reason or another.
Bitcoin Cash could re-enable them, bringing back codeable money to bitcoin, making the currency just that much more interesting and giving ethereum some needed competition to keep them on their toes.
Then, they might stop delaying their Proof of Stake and actually get on with it as they may not be able to enjoy what is currently free reigns, so lacking any real competitor.
Especially as Bitcoin Cash brings back instant transactions after removing the Replace by Fee (RBF) bug and re-instating the first seen transaction rule for nodes and miners.
That makes bitcoin usable for payments once more whereby you just scan a QR code at a bar or restaurant and you are done, with the merchant fairly confident the payment is made. Confidence which currently they can not have because the so called “fee market” allows for easy double spending by just increasing your fee.
With Bitcoin Cash, such simple fee increase would not work because nodes process the first seen transaction first and as blocks have plenty of capacity all such first seen transactions are processed.
To double spend on Bitcoin Cash therefore much effort would be required, as well as a malicious miner, and even then chances are likely less than 50%, making it pointless to a great extent.
Which is why such double spends were not really seen in bitcoin before blocks became full in 2015. Nor are they likely to be seen on Bitcoin Cash except for a rare one probably at a loss to just make a point everyone has conceded.
That is, 0-confirmed transactions are not absolutely safe, but they are pretty safe and, in any event, much safer than credit card payments which can be reversed, charged-back, and so on.
That’s especially the case as Bitcoin Cash has shown blocks now clear all transactions. A refreshing sight after more than two years for many prior to 2015 bitcoiners.
The above chart shows an increase in transactions queue (mempool) while they wait for a block to be found, and an instant processing of all transactions once a block is found.
That returns the tagline of as good as instant, which was proudly used for bitcoin prior to 2015 and can now proudly be used by Bitcoin Cash with the network processing all transactions in each block, leaving no backlog, no delays, no $7 fees.
That smooth functioning network is something big blockers have been asking for years. Now they have it. So some bitcoiners that left are now seemingly returning with confidence too being re-stored to some extent.
Because they can now have their smart contracts, albeit at a limited capability to eth. They can have their digital cash and digital gold due to the 21 million limit. They can now have their as good as free and as good as instant transactions. And they can now have back their much loved bitcoin.