Satoshi Nakamoto created Bitcoin on October 31, 2008, introducing it as a new electronic cash system that doesn’t involve any third party. Today, more than 1,500 virtual coins are listed on data feed websites. Although most of these coins continue to be heavily criticized both by financial analysts and the public, some have shown immense potential in revolutionizing the way people do everyday transactions. But over the years, it cannot be denied that the original vision of Satoshi is slowly being forgotten.
Bitcoin as Satoshi Envisioned It
Just two years after creating Bitcoin, Satoshi Nakamoto left the cryptocurrency community. Since then, the community has been divided into two groups. This division is led by some supporters who believe that Bitcoin’s refusal to increase the 1MB block size is causing the original protocol to deviate from what Satoshi envisioned Bitcoin to be. This stubbornness ultimately led to forking the protocol, famously known as Segregated Witness or SegWit.
Although SegWit continues to be highly controversial today, many think that it’s a necessary shift in order to make Bitcoin what it was originally meant for: a fully peer-to-peer electronic payment system. Not long after SegWit, Bitcoin Cash was founded, with supporters saying that it’s the closest chain to the original vision of Satoshi.
Does Satoshi’s Vision Still Matter?
Many supporters of Bitcoin Core argue that Satoshi’s vision and whitepaper no longer matter. In fact, the co-owners of Bitcoin.org have proposed making several changes in Satoshi’s paper. There have also been many changes in the description for Bitcoin on the front page of the said website. For instance, the phrase “cheap and fast transactions” have been replaced—and rightly so. These two adjectives no longer apply to the Core network.
On the other side of the fence, supporters of Bitcoin Cash believe that history is important. Their goal is to make everything in Satoshi’s whitepaper come to life. They place emphasis on upholding the whitepaper’s title, which doesn’t say anything about Bitcoin being a speculative asset. It also doesn’t advocate for Bitcoin being a digital store of value.
Still, it’s hard to blame investors for entering the cryptocurrency market with the hope of accumulating wealth. In 2017, many digital coins have increased in value tremendously. Bitcoin itself grew in value by almost 20 times. Aside from the increased popularity of cryptocurrencies in general and the continuous rise in adoption, what makes virtual coins attractive for most people is how easy it is to get a hold of them. Trading robots like Bitcoin Loophole also allow investors to make informed decisions and automate the trading process.
What About Transaction Fees?
Other than investing in cryptocurrencies to increase wealth, many people also invest in virtual coins to actually use it for their transactions. Back in the day, transaction fees were said to be cheaper than most centralized processors. This is one of the many reasons why so many people viewed Bitcoin as a means of helping people in poverty-stricken countries. Today, though, transactions fees have skyrocketed, prompting most people with Bitcoin in their investment portfolio to just hold onto to them instead of using the coins to buy goods and services.
Bitcoin Core advocates and developers argue that the increase in transaction fees is to be expected to maintain the security of the network and avoid inflation. Bitcoin Cash, meanwhile, says that this will only hinder the mainstream adoption of cryptocurrencies. It’s simply hard for people to use Bitcoin on a regular basis if it would cost them $30 or more per transaction.
One solution presented by Core developers is the Lightning Network. Bitcoin transactions aren’t as fast as paying for goods and services with fiat money. But the Lightning Network, in theory, can speed up transaction times and reduce fees accordingly. Still, this is yet to be fully implemented in the network, and only time can tell whether it will make Bitcoin fast, cheap, and secure.
Which Side of the Fence to Choose?
There are benefits and drawbacks to both Bitcoin and Bitcoin Cash. Ultimately, it’s on everyone to decide whether to support a network that sticks to Satoshi’s original whitepaper or a network that has adapted to the times and thinks that Bitcoin can serve as a digital store of value.
Many people in the cryptocurrency community even decide to support both networks and appreciate everything they bring to the table. After all, Bitcoin and Bitcoin Cash want the public to embrace virtual coins and realize how they can change the way they treat everyday transactions. This split might even prove beneficial, as it means catering to the different needs of cryptocurrency advocates, particularly in terms of using Bitcoin to pay for goods and services or transferring capital into Bitcoin to diversify their investment portfolio and grow their wealth.
