Shibaverse Գին

Why has Bitcoin Cash failed?

<!-- SC_OFF --><div class="md"><p>I have never sold the BCH from the fork. I believe Bitcoin Cash is the best technical solution so far.</p> <p>BTC Lightning was not a very good idea from the start, since it needs always-online watchtowers to prevent outdated channel closes. I find it more like RAM than a HDD, and I am skeptical it is fit for a currency database.</p> <p>Without Lightning, Bitcoin can perform 7 TPS, or it takes about 9 years for a billion people to make 2 transactions. Clearly the block size is too small for worldwide adoption, <a href="https://bitinfocharts.com/comparison/median_transaction_fee-btc-eth-ltc-bch.html#log&alltime">and the transaction fees confirm this</a>. $20 is a lot to someone in India spending $5/day.</p> <p>On the other hand, the purpose of transaction fees (increased by transaction demand during limited supply) is to ensure security. Right now, to outspend Bitcoin miners it would cost <a href="https://www.crypto51.app/">$589k/hr</a> - which is an absurd amount of security.</p> <p>Very few people need to secure more than $589k/hr against doublespend. Of course, a doublespender like a fraudulent exchange could scam multiple people at once, so let's take a 10x margin, which would still give us $58.9k/hr.</p> <p>In the mean time, Bitcoin Cash, due to its limited adoption and small fees, only costs $4.8k to double-spend. With our 10x margin, you can secure $480 by waiting 1 hour.</p> <p>While BCH is is inferior right now if, say, you want to buy a $480k house (you'd have to wait 1000 hours = 41.66 days), with increased adoption it would be more secure (because a price increase would increase the block reward, and increased competition for block space would increase fees also).</p> <p>Why has BCH price not grown? Not only did it fail to catch up with Bitcoin, but it actually lost 95% of value relative to USD in the since all-time high. I hoped it would come back, yet all we see in the top 50 is premined coins and pump-and-dumps.</p> <p>Is it the (lack of) advertising? I see even Bitcoin.com is now shilling some VERSE token I've never heard of.</p> <p>Is it the network effects? the value of a network increases with the square of its users, and as such, Bitcoin Core has a significant advantage.</p> <p>Do you think BCH will come back? or at least stop falling?</p> </div><!-- SC_ON -->   submitted by   <a href="https://www.reddit.com/user/autoencoder"> /u/autoencoder </a> <br/> <span><a href="https://www.reddit.com/r/btc/comments/z1tcku/why_has_bitcoin_cash_failed/">[link]</a></span>   <span><a href="https://www.reddit.com/r/btc/comments/z1tcku/why_has_bitcoin_cash_failed/">[comments]</a></span>