Again some turbulence ahead on cryptocurrency world, Bitcoin price drops after the hard fork that gave origin to Bitcoin Cash.
Bitcoin cash came with the promise of a better world for users of digital money. The idea is that transactions will be faster and smoother, and also consequently, more profitable for miners. This update is a fork dedicated particularly to miners that so much depend on large and expensive hardware structures to be able to mine Bitcoin and thus provide a smooth flow of transactions over the network.
A consequence of this is that also users will be more happy with confirmation and transaction times. But, there’s a catch; this also means that the network is less secure.
To ensure transactions will always occur as smooth as possible through the network, the new coin, Bitcoin cash, provides a configurable level of difficulty that can be updated when needed. What this means, is that the process that confirms a transaction won’t need to be as hard, complicated and resource demanding as in the Bitcoin network.
So, on the one hand, we have a fast network with low-cost fees, on the other hand, we have a very secure system with higher costs and slower transaction times. Who wins?
“He who controls the past controls the future. He who controls the present controls the past.” – George Orwell, 1984
Bitcoin, as observed today, is still unbeatable; Bitcoin cash supporters did try to break Bitcoin value and demand by organizing a mass push of value into the coin. The result was that its value went up quickly like a rocket, pushing Bitcoin value down on a similar speed also. Many theories walk around the web, pointing to a significant Korean group who did purposely pushed for this attack.
In my view of the world, more and more individuals and organized groups, are and will, try to control Bitcoin or any other major digital coin. The decentralized and apparently out-of-control aspect of the network is something that quite easily can scare big corporations in the world. For me, this was another attack; an attempt to control the system by deliberately injecting value into it, while at the same time creating fear, doubt, and the now most famous “fear of missing out” symptom that gave the so desired value push for a while to Bitcoin cash.
Bitcoin prevails. Bitcoin cash went down again shortly afterward. I agree that the current system is not perfect, having to wait long periods of time for transfers and high fees. I also think that what just happened with Bitcoin cash is not the solution. This fork was what I like to call a “quick fix,” but as with all temporary solutions, they all fall eventually. We need a proper answer in time, but one who doesn’t sacrifice the core principles of Bitcoin.
Bitcoin started as an idea that attracted so many in the world throughout these years. The concept of public, decentralized, vigorously censors resistant network. That was the core and birth of this brave new world, the world of digital money, the cryptocurrencies.
The Web was all about the same ideas, a decentralized strongly censors resistant network. Bitcoin is the future of Web, it’s the next iteration, and that’s why I continue to be a firm believer of Bitcoin, the idea will survive all attacks and attempts to go around it, no matter the technology. Evolution will eventually happen, but a respectful one that doesn’t kill it’s core principles.