Dinosaur of Digital Currency

Avatar for engr.utman
3 years ago

I am a new bee in th field of Crypto currencies. Since I have started studying different currencies and being a science student I found a link between Darwinism and current crypto market. First I want to elaborate what is darwinism briefly.

Darwins Theory in Biology

When we study life on earth in the books of biology, We are told that every species that is living today on the face of the earth is basicaly fittest to survive all the hard times and difficulties of the environment. The Species that could not survive the upcoming challenges in the environment are now found in the museums around the world.

One of the famous species of living beings were Dinosaurs, that are no more alive in the eco system of earth. Dinosaurs were once mighty, dominant and most powerful creature ever known on the face of the earth, but now we only have them in the fiction movies and museums.
By observing all the mutations and links between the species of living beings, Charles Darwin proposed theory that Species( living being) that could survive the changing environmental Challenges were those who adopted the change and mutated accordingly. However who could not adopt the change and had no capability of fighting with upcomming challenges could not survive and became the Hiostory.

Dinosaur of Crypto

After analysising the crypto market I am of the opinion that BTC is todays Dinosaur in the market but the signals (Challenges) of past couple of weeks are not in favour of the Dinosaur. A few of them are listed below.

  • Small Hash size and High transaction fees

    In the start of this year back in January 2021, transaction fee of Next Block of BTC was below 10$ mark. and as of today 25-04-2021 it is 26$ after a peak fee of 39$ on 22-04-2021. If this goes like that no would like to pay a fee of 40$ for 20$ transaction. So basic point of shifting to Digital Currencies goes Null and void when you have to pay even more fees than a conventional Bank. Here is Chart of median transaction fees charged by BTC and BCH. BCH on the contrary side remained quite stable and low in terms of transaction fees with 0.0038$ as on 25-04-2021. Chart by bitcoinfees.cash

  • Limited Block size

    Block size of BTC is only 1MB that is making it quite difficult ot handle that much larger number of blocks and making it difficult to mine.

  • Majority Minners in One country

    As already posted in article by @pantera here that due to restriction in the mining activity of BTC inspired by an event in China caused decrease in the Hash size and consequently increasing the transaction fee. This is a major drawback of claim regarding decentralization. As by a govt. move for couple of days only caused so much impact on the currency make it dependent widley on a limited geographical presence of people. What would be the future of BTC if minner belong to one country goes disconnected form internet for couple of weeks.

  • Intense Mining Resource

    With little block size Minning is getting difficult day by day and the resources required to perform transcations will be even more powerfull making minning BTC not a profitable business.

  • Decreasing Market Share

    As on 22-04-2021 Market share in was below 50% for BTC. This shows distrust of users of Digital Currencies on BTC and other digital currencies being trusted for transactions by the users. Consequently making this sign as a new femin for BTC to survive.

Final Thoughts

BTC seems to be the gaint creature of Crypto Market as once Dinosaurs were on the face of earth but now they are stalked in the Museums being history.
Keeping in view above all problems, It is now quite evident that Species of BTC is getting weaker day by day in the world of Digital Currency and It is lacking the basic proficiencies and skills to survive in the emerging digital market. BCH on the other hand have all the imunities from the famins of today in the Digital Currency Market being best fit as per Darwins Theroy of Survival of the fittest.

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Avatar for engr.utman
3 years ago
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Comments

You couldn't be more wrong! Also, edit your post, as the grammar is horrific.

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2 years ago