You will see a lot of articles on Bitcoin this week. This is what you really need to know.
Bitcoin Core forked from Bitcoin Cash. That’s right. You will hear that said the other way around in 99% of articles, tweets etc but Bitcoin Core altered the way digital signatures are handled to:
- Keep an artificial block size limit in place
- Provide capability to add a paid service called Lightning Network on top of Bitcoin to solve the problem created in #1
This basic change in how Bitcoin operates means Bitcoin Core is a fork of the original code and that Bitcoin Cash retains the characteristics that made it a 100B market cap with eyes on further exponential growth.
The facts around Core vs Cash are hotly disputed but people are slowly waking up to the truth.
Here’s more about why this distinction between coins matters and who will win (and where to put your funds).
Bitcoin Core promises to solve the scaling problem using SegWit to enable the “Lightning Network”. The Lightning Network is a second layer solution designed to handle transactions (for a fee of course!) and then using Bitcoin only as a settlement layer. Do you see the problem yet? It negates the primary features of Bitcoin. Bitcoin becomes captured by Blockstream, the proponents of SegWit and the Lightning Network. Blockstream will make billions from this scenario. Oh, did I mention several of the Bitcoin Core developers are also Blockstream employees? Blockstream intends to be the vampire squid of Crypto.
Think of money. Then think of Visa. Visa would love to eliminate money! The Lightning Network is like Visa. If Lightning Network were enabled Blockstream would be grifting from every transaction on the Bitcoin network.
Bitcoin Cash promises to solve the scaling problem by increasing the block size. This allows scale using Bitcoin Cash quickly and cheaply without a thrid party involved. This keeps the promise of what made Bitcoin appeal to many early adopters as well as protecting Bitcoin’s resistance to control, censorship and corruption.
So, what’s been going on? A war. I’ve been posting about Bitcoin Cash for a few months. It had a ridiculous spike and retrace even for the wild west of Crypto. But in a few months that will be a blip on the chart. Crypto veterans have seen the craziest things and we’re practically immune. Crypto is changing the world and rewriting the rules of money. It’s going to be fucking messy for a while.
Predictions are a fool’s game but I’m a fool. I expect that BCH resumes it’s climb in next 48 hours and BTC will not reach $7,000 again. In a few months BCH will be king and BTC will be #rekt.
Caveat emptor, motherfuckers.