With all the excitement and funfare going on about Bitcoin,one would be stupid to still think that all that was a media hype. The truth still remains that Bitcoin is on a mission of being the most valuable financial asset in the world. It's just a matter of years before it achieves that.
Having the biggest market cap (over 495billion dollars) companies and institutions are quickly converting their financial assets into Bitcoin. This simply means that the price is on a journey of no return.( up and up it goes).
Bitcoin
Bitcoin,being the first cryptocurrency is the most valuable of all the cryptocurrencies in circulation. Its value has been predicted to hit $500,000 in the next 5 to 6 years. This predictions were confirmed as institutions like Microstrategy started converting their financial assets into Bitcoin thereby pumping the coin's price more. It currently has the highest market cap of over 495billion dollars. This makes it the safest haven in the crypto space.
Bitcoin's All Time Problem
But one problem still lingers around this most valuable asset. This problem still remains the initial problem of transaction time.
Bitcoin has a very slow transaction speed. This is simply because of its block size which is about 1MB which is very small compared to the data it conveys. This issue alone ,makes Bitcoin unattractive and can turn out to be a hindrance in its future market performance( if the solution is not found).
The Bigger Problem That Looms
As investors are trooping in and Bitcoin gaining massive adoption, the looming problem would be that the network would at some point get so congested that the smallest transaction would take days and weeks to execute. At this point,the much valued asset would automatically look unattractive and this would certainly take a toll on its market price value. The funfare and excitement would certainly die off.
So I ask , what would happen when that time comes?
What would be the fate of investors when all the excitement dies?
Bitcoin Cash!!!!
Bitcoin Cash : The Proposed Way Out
This digital asset was a product of a hard fork of Bitcoin which originated from a controversy between Bitcoin supporters and Bitcoin Cash supporters. The cause of this controversy was simply because of the slow transaction time. Two solutions were proposed by the two groups;
1: To maintain the block size removing the signature data which amounts upto 65 percent of the transaction data.This will increase the transaction speed
2: To increase the block size so as to contain more transaction data which would be executed at once.
The second solution gave birth to Bitcoin Cash and solved the problem to an extent although not totally solved.
Here's what the Hong Kong newspaper had to say about Bitcoin cash:
" Bitcoin cash is like a new version of Microsoft Word, which generates documents that can no longer be opened via the older versions"read here
Bryan Kelly, a stock analyst likened it to a software upgrade:
"Bitcoin cash is like doing a “hard fork” or “effectively a software upgrade”, read here
Bitcoin Cash still remains the way out of this looming problem if it is well developed and modified. If the block size is made bigger to contain more transaction data, the speed of transaction would surely increase.
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