Full disclosure, in dollar terms my largest crypto investment is by far BTC and I own BCH as well. Naturally my primary interest is for my own bags but I hold genuine concern for the well being of others and the crypto space as a whole.
Recent events are not mere price movements.
PayPal has of course added purchase options for the BTC and BCH versions of bitcoin as well as ETH and LTC.
This presents a significant danger to all our investments, specifically the danger that people may actually try to use the BTC chain.
PayPal has 350million+ active users, that is a world stage and when they enable transfer capabilities early next year BTC will step onto that stage and the entire world will see that they can’t sing a note and haven’t even learned the words.
The changes Blockstream/Core made to BTC, their refusal to scale on-chain means it has a hard capacity limit of roughly 300-400k transactions per day, a limit it already regularly butts up against resulting in congestion and rising fees.
If a million people a day make the attempt to use BTC the reality is 600-700k people actually failing in their attempt to use BTC, with unpredictable delays and massive spiralling fees for those who manage to “win” the blind fee auction for space in a block. It is crucial to remember that paying larger fees does not increase throughput, the queue for blockspace doesn’t get any shorter, you’re just paying to move closer to the front.
The last time the BTC blockchain fell flat on its face it did so in the relative privacy of the crypto community. This time, in the full light of the PayPal prime time audience, they would be completely unable to hide the fatal flaw of the sabotaged BTC chain.
However, right next to them on that PayPal stage ready to take the limelight will be BCH, the version of bitcoin that stuck to the original scaling plan and is already comfortably capable of 10million+ transactions per day and still keep fees UNDER $0.01.
With scalenet tests already surpassing 3000 transactions per second, CashFusion fungibility, tokens, smart contracts, non-custodial escrow and all the other utility that bitcoin was meant to have, BCH has been in active development while BTC has stagnated for years.
The BCH price will rise as failed BTC falls and the hash will shift accordingly further exacerbating the BTC congestion/fee crisis while all the security of BTC moves onto the BCH chain for less than a tenth of a penny per transaction.
Having abdicated all utility in favour of “nUmBeR gO uP” BTC has nothing to sustain it when the reality of a mere million people a day trying to actually use it finally bites.
This transition, while logical, will be chaotic. Just imagine people’s reactions as the speculative value of BTC plummets with the realisation that it won’t be the bitcoin that becomes widely used because it functionally CAN NOT be the bitcoin that is widely used.
Of course I expect to be downvoted to oblivion but I hope whoever manages to see this understands that downvotes won’t scale the BTC chain.
The next congestion/fee crisis is coming and it can’t be swept under the rug this time.
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