A divided community
A conflict within Bitcoin. A scaling debate between two of the most powerful miners and the rest of the community.
So what is this debate about?
Transaction times have slowed down and fees have risen over time on the Bitcoin network. Further growth of the Bitcoin network required a solution.
This raises an imporant question.
What is the best solution?
It depends on who you are asking. Miners and users depend on eachother, but any changes to the Bitcoin network may benefit one part more than the other. This results in a conflict of interest, and multiple proposed solutions from both sides.
After being shot down time after time, Jihan Wu and Roger Ver, owners of Bitmain and Bitcoin.commining pools, recently launched a new attempt to hard fork Bitcoin to their advantage.
This hard fork will result in Bitcoin Cash, $BCC.
$BCCs main difference from the original Bitcoin, $BTC, is larger blocks.
The Bitcoin blockchain stores tranaction in separate blocks linked together.
In Bitcoin, the network generates a new block every 10 minutes.
The blocksize is 1MB at this point. BIP91 activated recently and will activate SegWit (which you can read more about here).
Segwit increases the block size to about 2MB and raises the amount of transactions the Bitcoin network can facilitate.
$BCC further increases the block size, resulting in an even higher transaction capability.
So, why are people opposing this?
Why $BCC is dangerous
There is one very important reason to why $BCC should not replace $BTC.
What makes $BTC truly amazing is decentralization. Decentralization makes the network safe as the power is distributed between all of the users and miners. $BCC threatens this.
How does $BCC threaten decentralization?
Larger blocks require larger harddrives and more bandwith from the miners. This increases the economies of scale and shifts power from individual users to the big miners.
Because of this, Bitmain and Bitcoin.com will control far more than 50% of the hashpower (mining power) of the network, making $BCC centralized.
This enables Jihan Wu and Roger Ver to make changes to the network as they please.
$BCC goes against everything that $BTC stands for. $BTC is a network meant to be accesible for anyone on equal terms, and decentralization makes this possible.
$BTC is supposed to give the power of banking to the people instead of banks.
With $BCC, we will be giving away our recently reclaimed power to Jihan Wu and Roger Ver.
On an additional note:
If you wish to recieve Bitcoin Cash at the split, make sure your exchange will support the new chain as well. Coinbase recently announced that they will not support the new chain, and any users holding $BTC on Coinbase will not recieve $BCC.
Move your $BTC to an exchange or wallet that supports $BCC.