Crypto Lesson for Dummies : BTC vs BCH

in #bitcoin4 years ago

A lot of people have left comments looking for more clarification on the differences between Bitcoin and Bitcoin Cash. In this article, I will explore the differences in detail and highlight the benefits and disadvantages of both cryptocurrencies.

Bitcoin (BTC) and Bitcoin Cash (BCH) are extremely similar considering BCH is fork (replica) of BTC with several key adjustments. The one thing they have in common is the fact that there will never be more than 21 million of either of them. This makes both of them suitable places to park money considering the laws of supply and demand. Digital assets are unlike physical assets in the sense that you cant touch digital assets, however, they are not that much different than stocks or bonds in the sense that you can convert them into fiat cash relatively easily.

The major divergence between Bitcoin (BTC) and Bitcoin Cash (BCH) comes down to ranking of priorities.

In its current construct, design, and roadmap, the BTC community is focused first on keeping Bitcoin decentralized so that it can remain as a public, permissionless, highly censor-resistant network that anyone in the world can use and build on top of. Fast, cheap payments are a secondary priority.

This chart visually demonstrates the point made above:

Both are competing to be the one and only 'Bitcoin' but more likely than not they will both continue to exist perpetually. Their future valuations are uncertain however...

The author of the article I'm referencing makes the following point here:

In my view, Bitcoin’s features as a public (anybody can use it), permissionless (anybody can build on top of it), highly censor-resistant (nobody can block your transactions), and un-seizable form of money all stem from its decentralized architecture. If Bitcoin loses its decentralization, then it’s just an inferior form of centralized institutions.

In my opinion BTC has already accepted a trojan horse in the form of it's recent 'Segwit' upgrade. This is something I doubt has been researched in as much detail as it should have been.

When researching the cons of Segwit I came across this comment on reddit:

https://www.reddit.com/r/btc/comments/77k5d6/why_is_segwit_bad_honest_question/

Segregated Witness is the most radical and irresponsible protocol upgrade Bitcoin has faced in its eight year history. The push for the SW soft fork puts Bitcoin miners in a difficult and unfair position to the extent that they are pressured into enforcing a complicated and contentious change to the Bitcoin protocol, without community consensus or an honest discussion weighing the benefits against the costs. The scale of the code changes are far from trivial — nearly every part of the codebase is affected by SW.

While increasing the transaction capacity of Bitcoin has already been significantly delayed, SW represents an unprofessional and ineffective solution to both transaction malleability and scaling. As a soft fork, SW introduces more technical debt to the protocol and fundamentally fails to achieve its design purpose. As a hard fork, combined with real on-chain scaling, SW can effectively mitigate transaction malleability and quadratic signature hashing. Each of these issues are too important for the future of Bitcoin to gamble on SW as a soft fork and the permanent baggage that comes with it.

To be honest even though I am @techblogger some of the technical language when discussing blockchain still throws me in loops. The part about Segwit being pushed upon the community without consensus (agreement) is very concerning. According to this statement Segwit has done very little to deal with scalability and reduction of transaction costs which may someday become Bitcoin's undoing.

Anyways, what do you guys think about BTC vs BCH? Is there room enough for both of them to stay? I've watched videos where true BTC believers have stated that BCH is a closer version to original BTC than BTC is today with its new SEGWIT protocol? What say you?

Thanks for reading!

Source:
Bitcoin vs. Bitcoin Cash: A Story Of Prioritization & Healthy Competition In Money - Forbes

How Bitcoin Cash Has Suddenly Become the Real Thing - The CoinTelegraph

Reddit - https://www.reddit.com/r/btc/comments/77k5d6/why_is_segwit_bad_honest_question/

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Good post. The market is a bit confused at the moment. I have long been a supporter of BTC but I just won't use it now. The fees and backlog issues are not going away and will probably just get worse. I keep hearing about this Lightning Network, but if this is the solution it's needed NOW. In the meantime it is only to be expected that crypto users will look elsewhere for usable cost-effective crypto.

The whole segwit issue seems very fishy to me. people were being banned on reddit if they spoke against it, they forced miners to upgrade whether they wanted to or not. Now the same thing is happening with BCH. If anyone supports BCH they get banned or attacked with a major smear campaign. I'm afraid that bitcoin core might be compromised. Especially if you look at who signs their paycheck. They seem to be deliberately ruining bitcoin. I guess time will tell. Also, BCH is making a big deal about decentralizing their development, there isn't just one team, there can be countless teams, a true open source endeavor, unlike bitcoin core.

In what sense do they intend to make it several teams? This was supposed to be possible already, so is it just that they're breaking up the monopoly (by using a smaller mining "monopoly" of their own as part of the tactic) or do they have other tools to accomplish this?

I'm reaching the edge of what I know... But bitcoin's development is only really done by bitcoin core, in secret. BCH has at least 5 or 6 groups that are all working on the code.
I didn't watch the video, but this is a good place to start. Also look at BCH's letter they wrote to explain their vision.
https://steemit.com/bitcoin/@scandinavianlife/who-is-really-behind-bitcoin-core-bilderberger-and-globalists-bch-is-the-true-anarcho-capitalist-bitcoin

Already seen it. I'll need to look into this more. If they can encourage more people being involved that might be a good thing, but BTC is a big organization as well and if the BCH organization has too little agreement then developement will become just as slow in BCH.

Interesting read. Some good, some less so. I'm at least pleased and intrigued by the state of mind that Falkvinge appears to be proposing.

Yeah, it will be interesting to see what happens... I'm starting to feel like BTC will probably win but ultimately be overtaken by other coins. BCH might be able to compete if it becomes the "real" bitcoin but I think that is a long shot at this point...

I guess major difference in BCH and BTC is just some upgrades in the chain to maintain integrity of bitcoin ... Due to some bugs earlier BCH was unable to gain miners majority and hence was not accepted ....let's see what BCH has in bag after the fork....I guess its a good investment as of now and few people like Roger ver and bitmain openly supporting BCH.

Good points. I agree that things have changed now, people know about BCH, it has become more respected and Roger Ver has even referred to it as the closest thing to the original Bitcoin that exists today.

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Hi streemer. I check your this post on Redit social website. You done weldone and useful job for us

The third most popular cryptocurrency after Bitcoin and Ethereum, Bitcoin Cash, was created from a hard fork of Bitcoin in August. Last Sunday, Bitcoin Cash soared from $ 600 to $ 2,790, raising its total market capitalization to around $ 22 billion, at least for a short period of time. On Monday, BCH fell back to $ 1120 before recovering. It is currently trading at $ 1,305

Thanks for the info

Bitcoin is for the banks and big business now.

Bitcoin Cash is the lifeboat for the more freedom minded folks.

Straight from the horses mouth:

Adam Back: 'Financial institutions that value reliability, security and decentralization for digital assets are likely going to want solutions on top of Bitcoin, like what we’re building at Blockstream.'

https://thecontrol.co/understanding-blockstream-25af2b6f0084

Yet it was BTC players and r/Bitcoin censoring and pushing off those challenging the orthodoxy, while BCH players are raising the blocksize as it was intended by Satoshi in the first place and allowing debate in r/BTC.

I actually don't support either chain over the other as I think they compliment each other nicely currently, but this just seems outright flipped on its head.

Agreed! This thing has gone an interesting direction. Both BTC and BCH have a bright future IMO.

BTC certainly remains an asset for investors, but today the probability of growth of BTH is big, as well as a sharp rise in prices for any crypto-currency. So let's see what awaits us next.

I never think of the future - it comes soon enough.

- Albert Einstein