But there’s a downside to those excessively low fees, especially as miners begin to rely on them as block rewards fall. After conducting research to compare the medium of exchange characteristics of BTC, BCH, and BSV, they found :īitcoin transaction fees continue to trend higher, averaging between $1 and $3, while Bitcoin Cash fees are close to zero. The controversial fork in August 2017 showed that Roger Ver and his allies were ready to take that risk in order to increase transaction speeds and reduce fees.īut neither fork is close to replacing Bitcoin as a medium of exchange, as Coin Metrics has reported. That’s why bigger blocks make for more centralized chains. With ledgers growing larger and faster, the hardware and bandwidth requirements to run a full node can quickly grow out of reach of anyone except a handful of increasingly powerful operators. It’s Not The Size Of The Block, But The Action In The Transactionsīigger blocks do make for faster transactions, but that may come at the price of increasing centralization.Įach node needs to store the entire transaction history of their blockchain. Given the failure of Bitcoin Cash to supplant BTC, there may be a fourth feature of money that Ver and Wright have both overlooked. Meanwhile, Bitcoin SV has doubled down on big blocks, raising their block size to 2GB in last week’s Quasar upgrade.īut cheap transactions may not be enough for a successful currency. ![]() Transaction fees are low, transaction times fast, and most importantly the Bitcoin Cash community is united in the original vision of Bitcoin as cash for the world.” As explained on Ver’s website,, “the Bitcoin Cash upgrade made Bitcoin usable as cash again. With relatively high transaction fees and sluggishly slow transactons, Bitcoin fails as a medium of exchange, and therefore as money.Īt least, that’s what Roger Ver seems to believe, and when it comes to transaction fees his project is a success. Money is defined as a medium of exchange, a store of value, and a unit of account. One of the key objections to Bitcoin (Core, if you like) is that it has failed to perform the functions of money. After two years, we can now see how that vision played out. Their vision was for bitcoin to be used as a medium of exchange. That fork underwent its own fork – a highly contentious one – with the creation of Satoshi’s Vision (BSV).īoth projects shared the goal of using larger blocks to raise Bitcoin’s transaction limit, without the complicated development required for solutions like SegWit. The split occurred because a number of miners and developers believed that Bitcoin’s core developers had abandoned the idea of peer-to-peer electronic cash. While there have been many forks since then, none have been as successful or long-lived as Bitcoin Cash (BCH). Today marks the second anniversary of the User-Activated Hard Fork, which split the Bitcoin community into two competing currencies.
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