Many of you may have noticed a sharp decline in the price of Bitcoin over a 24-hour period, from $19,029.80 to $16,857.80: a $3000 dip! Why? What happened?
Well, it had nothing to do with the Chicago Mercantile Exchange entry into Bitcoin futures. It has everything to do with the Coinbase announcement to add Bitcoin Cash (BCH) to its system. You can now buy and sell Bitcoin Cash on Coinbase.
Should you buy some Bitcoin Cash? It would not be a bad idea for the following reason: Bitcoin has one problem, that if not dealt with in a timely manner, will make Bitcoin Cash a more attractive investment, its block size of 1MB. That the Bitcoin block size is limited to 1MB means that so many transactions can be squeezed inside of it making the Bitcoin block prime real estate. That means that it will cost more to conduct Bitcoin transactions.
Bitcoin Cash was created when Bitcoin “forked” in early August 2017 (SegWit2X), by a group of developers who wanted to alter Bitcoin’s block code so the Blockchain could process more transactions at a faster speed, as well as require a much lower fee. When Bitcoin core developers disagreed, a group of developers decided to copy and modify Bitcoin’s code to create Bitcoin Cash which would remove the signature component of the Bitcoin block and increase the block size to 2MB.
It is conceivable that Bitcoin Cash might overtake Bitcoin. In my opinion, Bitcoin Cash is Bitcoin. The only difference is the increased block size that would speed up transactions and lower the transaction fees. Logically, it would seem to me, this is the way to go. It solves a problem, Bitcoin – at present – is unwilling to make a move on to resolve.