$BCH A Growing Irrelevance of Bitcoin Cash (BCH)
Bitcoin Cash (BCH) was conceived in 2017 with the aim of serving as a fast and cheap electronic currency, prioritizing the increase of the block size to allow for more transactions on the base layer (on-chain).
However, the narrative of BCH has been progressively weakened by two important innovations:
1. The Implementation of the Lightning Network (LN) on Bitcoin (BTC): Bitcoin's (BTC) second-layer solution addressed the scalability problem of payments more efficiently. The Lightning Network offers nearly instantaneous transactions with cents per dollar fees. Thus, BTC has been able to provide the speed and low cost that BCH promised, but without compromising the security and decentralization afforded by its 1MB block limit. This move undermined BCH's main argument.
2. The Emergence and Innovation of eCash (XEC): Bitcoin Cash also faced challenges from its own fork. eCash (XEC), which is derived from BCH, sought to modernize the approach. By implementing Avalanche Consensus, eCash promises even faster transactions (with confirmation in seconds). For advocates of on-chain scalability, eCash has positioned itself as a technically superior and more modern alternative to BCH.
Thus, Bitcoin Cash (BCH) finds itself squeezed: it has lost the race for value storage and security to Bitcoin (BTC), and lost the race for technological innovation and speed in the "electronic money" category to eCash (XEC).
What is your opinion? Which cryptocurrency truly deserves the title of electronic money? #XEC #BCH #BTC
