BCH vs. BTC or The Raise of Bitcoin Cash
- Thread starter Pekelo
- Start date
Short or at least sell BTC, go long BCH.
I used to think that way about BCH when it forked because that sounded like an hostile takeover from Roger Ver. In reality it's the opposite where Blockstream did an hostile takeover of BTC and intentionally cripple the L1 network to push users unto L2 where they have a business. BTC is a big boat so it will continue to drift on past momentum for a while, but it's slowly turning.
Bitcoin is currently unusable for transactions under $100 because you'll be paying half of it in fees. Transaction data size depends on the number of spent outputs, which can be high for stores. Check Roger Ver AMA where he gives away private keys to a wallet containing many $5 inputs and someone ends up paying $150 worth of fees to move the $155 coins. It makes no sense for Blockstream to keep the network in its current state unless they want companies to use their own private network. In this case, they got caught with their pants down because BTC rallied before they got Lightning Network out, making BTC unusuable for the only use case it had right now, which is small purchases on the internet. BTC used to run on faith and low cost transactions, now it runs on faith only.
Pekelo, another chance for you to have egg all over your face, I see. It would only be the 1,342,353 time, with regards to BTC.
BCH is a scam perpetrated by big players, Ver, Coinbase and now CNBC. Don't fall for it. Keep accumulating BTC.
I think you are brainwashed by Bcash people.
First: BTC isn't for buying coffee, it's for settling (very) large transactions (the average is currently > $15.000). At those transactions you pay for more security, and that is fine.
Second: many other alt-coins are much better in coffee payments than Bcash. Litecoin is superior, and others are more anonymous.
Third: Second-layer protocols (on top of BTC's settling layer) will blow away speed, scaling and fees, of any alt-coin.
When did it change to large transactions only? When I got into Bitcoin some years ago, it was all about sending something of value on the net in a pseudo anonymous way. Merchant adoption was the hot topic and users were using BTC to buy stuff. Then I went into hibernation for a few years and the mission changed.
I'm well aware of the security concept with miner reward. I have been writing about this months ago saying users were being pushed out of the chain they helped create due to tx fees, but usually got downvoted. The high increase in price and higher satoshi tx fees have an exponential effect on USD value and we're starting to see complaints find their way through censorship.
If all chains have the same feature, they are suitable to one level of transactions :
- Microtx
- Tipping
- Coffee
- Monthly bills
- Cars
- Medium business settlement
- Inter-bank settlement
The suitable level depends on security and liquidity. Security depends on hash rate and fiat value. Hash rate depends on block reward and tx fees. Tx fees depend on demand. Liquidity depends on fiat value and stability. Fiat value depends on demand and usability. Demand and usability depend on security. It's a feedback loop. When demand grows, it enables the chain to be used to the next level and pushes the previous level out. You stopped seeing tipping years ago. Coffee has been pushed out months ago. Now bills are being pushed out. This means the chain is secure enough for cars, but medium business settlements are still risky.
Will there be enough car purchases to maintain security high enough to keep BTC at this level? If not, price will start dropping and the chain will go back one level. However, other chains grew to take the vaccuum and it will be a war zone.
I don't know about you, but I wouldn't want to use BTC for one car purchase every few years. It makes no sense and it's not the Bitcoin that I signed up for years ago. BCH is. Bigger blocks means the chain has a wider reach on these levels. It will get full eventually, but if it gets to the car level, I can still use it for monthly bills. By then, blocks will be bigger to maintain the foundation. Keep in mind that you need an order of magnitude more of transactions of a lower level to sustain the security for an upper level.
LN requires 2 transactions to allow unlimited fast and cheap transactions. Since we're at the car level, that means I need a car worth of capital in BTC for the 2 transactions to make economic sense. At that point, I'll be locked on the chain because BTC price will most likely push up to the next level and I sure don't want to pay $1000 to get out, which can happen if my connected nodes die. LN is a derivative of BTC and is a house of card in the same way that investing with derivatives only can be when the fecal matter hits the fan.
I can't see post #45 and #46 because the posters are on Ignore, but let me explain it.
When tx fees went out of whack. They are moving the goal post. As I listed in my thread about technical issues, bitcoin lost 6 of its 8 features that was "revolutionary" in the process of getting its price high. Success has killed the cat.
Now when you are still holding to an obsolete coin in the hopes of getting rich, you obviously have to make up some lame excuses why your crypto is still the king.
But we know better, the king has no clothes!
When tx fees went out of whack. They are moving the goal post. As I listed in my thread about technical issues, bitcoin lost 6 of its 8 features that was "revolutionary" in the process of getting its price high. Success has killed the cat.
Now when you are still holding to an obsolete coin in the hopes of getting rich, you obviously have to make up some lame excuses why your crypto is still the king.
But we know better, the king has no clothes!
You are raising some good points.
Indeed. Utopia would be a real currency used for everything as the USD is now. And that's still the path to walk. But this can only happen if the market-cap is in equal terms of the major currencies. This because a huge market-cap will stabilize the price and volatility and appreciation will disappear.
So until price appreciation is here, we have to use Bitcoin for Store-of-value and investments only (except in some countries like Venezuela). When appreciation disappears we can use it for buying things, but only then!
Because, who wants to buy now something with Bitcoin, to learn 1 month further that what he bought is now half price? This was as true in 2013 as it is in 2017, but today there is an additional reason for not using it for daily transactions: which is fees. In 2013, fees were zero because there weren't that many users and blocks were empty. Now, it's very crowdy and only economical to transact large sums of value.
Second layer protocols (LN) will solve the fee issue, but as long as we are in the appreciation-phase not so much cup-of-coffee payments will occur.
