Although this is a bit off topic, it is something that is just getting bigger in the technology space. With its recent split as well making it hit the news I think now is a good time to talk about it. To start with we will talk about the split, what it is and what it means, then what the future is for Bitcoin.
So what does the split mean, that created bitcoin cash. This came about because of bitcoins success, the issue is how many transaction can be processed in a second. For example there are 24,000 visa transactions a second. How many can the bitcoin network manage? Seven! This is because of how the transactions are verified, with what is known as a blockchain. This way of recording the transactions is what make bitcoin so unique. It makes it hard to manipulate and stops one person or organisation owning it.
Because of how many transactions are now occurring daily the amount to time to complete a transaction is now making it slow to use. This began to raise questions about the future of the currency and its scalability. Bitcoin miners and developers worried about this decided to create a new cryptocurrency that solved this issue. The way they did this was by increasing the block size from 1mb, which allows about 250,000 transactions a day to 8mb which allows about 2,000,000. This obviously makes bitcoin cash more scalable with cheaper, quicker transaction fees.
The future of Bitcoin
Is the future Bitcoin or Bitcoin Cash then? Well it’s completely up to you. Bitcoin has the bigger infrastructure and uptake, but Bitcoin Cash is faster with smaller transaction fees. Investopedia puts its best in its conclusion when it said;
Improving cryptocurrency as a transaction medium will depend on maintaining the high level of security that Bitcoin has always ensured, while also improving transaction speeds. Bitcoin will continue to be highly secure, but how much its transaction speeds will improve is unclear. Bitcoin Cash, once its difficulty has adjusted, could have transactions processing in two minutes and 30 seconds. The security of the Bitcoin Cash blockchain, though, is unclear.
Only time will tell what the winner will be, what is for sure is that work is still required before it truly becomes mainstream.