Bitcoin Cash has finally come a bit to life with the currency up some 7% yesterday while bitcoin was down 7%.
That’s on somewhat increased volumes for both, with the ratio looking a bit interesting.
This is zoomed in quite a lot to just one hour. A longer time-frame would have shown BCH was 10x more valuable against bitcoin just last year.
It plunged, as did most other cryptos, while BTC managed to retain its value, hence the ratio dropped some 10x.
Now, for BCH and for ETH too, the ratio is rising. The question in everyone’s mind is why?
That’s probably what everyone is thinking, and one of the narrative towards it seems to have been a revival of a March 2019 Trustnodes article that brings back the scalability debate.
Peter Todd argued that as time goes on, there may be a case to be made to cancel the halvenings because fees might not be enough to support mining at 1MB blocks or maybe 2MB for segwit.
The BSV gang in particular likes that article a lot, but it has reflected on BCH because they plan to increase capacity in line with demand.
Moreover ethereum’s complex sharding solution to scalability may have returned some attention back to BCH where its approach is somewhat unique among cryptos as it plans to do what Satoshi Nakamoto suggested, just increase the blocksize.
Then of course there’s Litecoin, with which BCH has been “fighting” for the fourth position. Charlie Lee’s statement that no one is interested in working on Litecoin may have well sent some interest to BCH.
Or Green Done It?
Or it may well be the case that BCH has now sort of gone green and has ditched that orangish logo it previously had.
We say sort of because this network is so centralized they can’t even decide the color of their logo. So it’s an orengy mess in some places and it’s a somewhat nice green tilted 45 degrees in some others. Maxis hate the latter.
The real reason for this BCH up while bitcoin down is probably ping pong. Bitcoin has risen a bit too much without other cryptos rising, so other cryptos are now kind of rising.
Why BCH instead of eth may be a more interesting question, and the reason is probably because BCH is bitcoin, while eth is… well no one knows yet.
We say that because eth has no clear monetary policy, with decisions on whether to increase issuance or decrease issuance made by some sort of community manager in some “call” where das elite say yey or ney and make sure to tell all the
plebs coin votes don’t mean nothing.
If eth was not at full capacity, then there might have been some community pressure to get them to sort out issuance and stop playing with it, but since everything is kind of in flux in eth, then no one quite knows just what eth is.
Making a bet on eth somewhat unique because it can have a lot of upside as it can potentially even overtake bitcoin if it does sort out scalability in a satisfactory manner, but on the other hand it might actually not quite work out especially if bitcoin and then presumably BCH too gets smart contracts.
While for BCH there isn’t any uncertainty
except for green or orange. There’s no need there for perpetual inflation provided the network is actually used. There’s no need to sort out monetary policy or anything, not even scalability. In some ways really BCH is finished as a product, with only efficiencies and that sort of stuff, decorations, left to be added.
Now obviously there’s the question of whether this approach of just increasing the blocksize would work, but 200MB blocks provide 100 million transactions a day.
At that level BCH would be widely used, with it then operating a bit like the internet itself.
Meaning upgrades would be difficult if at all even possible and becoming part of the network would also be a bit difficult too, but open to anyone.
It would at the very least be a very interesting experiment especially as there’s always the fallback to BTC or ultimately you can always have a new chain to join the 4,000 or so that are already running.
That unique approach does give BCH at least intellectual value, so maybe the market is having a look at it again as ping pong season maybe has begun.