Bitcoin Cash Celebrates 2 Year Birthday with BCH-Fiat Exchange Launch
Bitcoin Cash (BCH) celebrated its two year Birthday on Thursday. Celebrations were boosted by the announcement of a Bitcoin Cash-centric cryptocurrency exchange, which will use BCH as its base currency.
Bitcoin Cash to Get BCH, Fiat Exchange
On the two year anniversary of Bitcoin Cash’s conception, CEO of Bitcoin.com and BCH supporter Roger Ver announced the imminent launch of a BCH-based cryptocurrency exchange.
The new exchange will be in direct contrast to the recently launched LocalBitcoin.com, which is decentralized and authority-less. According to Roger Ver, the new platform will be aiming to join hips with the traditional banking industry, to facilitate fiat deposits and withdrawals. Ver said:
“It’s a little bit of a change of pace for us, but we’re actually looking at being able to go with the traditional banking network, where you’ll be able to deposit [and withdraw] fiat… The really big news is that Bitcoin Cash will be the base pair that everything else will be traded against.”
Reaction to the news on the Bitcoin Cash subreddit (r/btc) was mixed. Many celebrated the prospect of a BCH exchange, however some voiced the concern that it could bring more regulatory heat onto the Bitcoin Cash community than was necessary.
That said, Ver is not a U.S citizen, having willfully and legally renounced his citizenship. And if his Bitcoin.com website does bring in the +10 million visitors a month that he claims, then a Bitcoin Cash exchange could quickly become a main player among crypto trading platforms.
Two Years Ago Today – The BTC Split
Two years ago, philosophical tensions in the Bitcoin community which had been simmering for years finally came to the boil, resulting in possibly the most contentious blockchain hardfork to date.
Disagreements centered around the question of increasing the Bitcoin block size on-chain, versus the prospect of using third-party, off-chain solutions such as SegWit and Lightning Network.
Today, Bitcoin (BTC) marches forward with 1MB blocks, which are normally close to full. Close to 40% of BTC’s transactions go through the new SegWit protocol, which increases Bitcoin’s usable capacity by ‘trimming’ its transactions. Basically, signatures (witness data) from a transaction are removed, and then validated separately, effectively allowing 4MB of transactions within a given block.
As useful as that may sound, it was the very raison d’etre for Bitcoin Cash’s birth. By removing signature data from transactions, Bitcoin was absolved of one of its core operational values – that of being a decentralized, immutable string of validated signatures.
BHC is Born
Meanwhile, the Bitcoin Cash block size has since been increased all the way to 8MB. According to Bitinfocharts, that capacity is rarely utilized in full, and indeed it may not be for some time. But as Cornell professor Emin Gün Sirer tweeted on Thursday, Bitcoin Cash retains the original vision that BTC willfully discarded:
“I like Bitcoin Cash for its purity of vision. Hardware trends tell us that, if you were happy with Bitcoin at 1MB in 2015, you should be just as happy with much larger blocks today. BCH is exploring how far one can ride these trends. Godspeed!”
The average cryptocurrency user probably doesn’t know or care about this. But if someone tries to send a BTC transaction on a busy day, and they don’t have SegWit software running, they’ll soon feel the burn of Bitcoin’s abnormally high fees. In a cryptocurrency landscape dominated by sub-cent fees, Bitcoin may be the only one where average fees often near or exceed $10 a pop.
At this point, they might start to dig deeper into why they can’t use Bitcoin as a day-to-day payment system, but only as a store of value. Or maybe by that time the average user will have become sophisticated enough to start running SegWit software as standard.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.