Industry reacts to Bitcoin Cash

Bankless Times complied reactions from the cryptocurrency industry on Bitcoin Cash, which today split from Bitcoin.

Ryan Taylor, CEO of Dash Core, a digital cash wallet

“There are many misconceptions about Bitcoin Cash and what it represents. To be clear, Bitcoin is not forking. Rather, some developers have created a new digital currency and formulated an effective means of distributing it, by giving it to everyone with an existing Bitcoin balance.

Ryan Taylor

“Nonetheless, the multi-year dispute over how best to increase Bitcoin’s transaction capacity is what led to this moment. Bitcoin lacks an effective governance model to resolve contentious issues, and this is clearly deterring technological progress. When an issue as simple as whether to increase the block size can lead to years of stagnation, something needs to change. In my opinion, governance is an issue that the Bitcoin community needs to take more seriously.

“While the markets will ultimately decide, I think there is little chance that Bitcoin Cash will be successful in the long-term. It may have increased capacity, but several issues remain. First, Bitcoin Cash has not solved scaling. It has merely kicked the can down the road with slightly larger blocks, but still lacks a credible technology to scale to massively larger numbers of users. Second, Bitcoin will retain the network of integrated services that make the Bitcoin network useful to businesses and consumers. With no substantial enhancements compared with Bitcoin, Bitcoin Cash is unlikely to be integrated into those same services, given the substantial expense for businesses operating them to do so.

 

Luis Cuende cofounder and project lead at Aragon, a company founded to disintermediate the creation and maintenance of companies and other organizational structures.

Luis Cuende

“I think it will be a huge stress test on community governance — forks are a way to vote, to reclaim independence, and I really look forward to seeing how further development will continue and how the community will react.

“It (will) probably make BTC holders more wealthy, since Bitcoin is better with SegWit. Plus, the people that were actively trying to stop development on Bitcoin and centralize it, will now have their own chain to do whatever they want with it. I think this will positively impact Bitcoin.

“Short term, I believe Bitcoin Cash will be around for some time, but in the long term, I don’t see Bitcoin Cash going anywhere. Probably a fatal bug will crash the whole network (it already happened with Bitcoin Unlimited, Cash’s predecessor) or people will just lose interest in a currency engineered to look decentralized while being totally centralized.”

 

Rob Viglione, cofounder of ZenCash, a private, distributed platform for communications, transactions, and publishing.

Rob Viglione

“Bitcoin scaling has been a complicated issue for the past few years, so it’s nice to see forward progress, even the situation is a bit sloppy. Most participants in the ecosystem will be upgrading with the BIP-91 activation for Segwit2x, but there’s some support for Bitmain’s Bitcoin Cash “User Activated Hard Fork” (UAHF) that launched at 12:20 UTC today.

“The good news is that we’ll see experimentation along two distinct preference clusters. Rather than forcing one way or another, we can see how each idea unfolds in real life. This is the major advantage of cryptocurrency markets: Instead of bickering over theory and assumptions, we can just bring ideas to market and see how they perform.

“Still, there are pros and cons to everything. The downside of a split is that Bitcoin loses part of its ecosystem, and network effects are so important to this industry. That said, this isn’t a zero-sum game and it’s more than possible to see both chains flourish in parallel.”

 

Justin Newton, CEO at Netki, a blockchain compliance solutions provider

Justin Newton

Justin Newton

“It appears the fork’s impact small. It appears a very small percentage supported the new bitcoin fork. The old network processed as normal and there was little velocity on the new network due to a lack of miner support.

“Long term this will be incredibly good. It’s stimulating discussion after two years of stagnation (where) the network couldn’t figure out governance issues.”

Sheffield Clark, CEO of Coinsource, a national Bitcoin ATM network

Sheffield Clark

Sheffield Clark

“When we look back 30 days from now, this is essentially going to be a non-event. We have absolutely no plans to integrate Bitcoin Cash at our machines at this time.”

 

Perry Woodin, CEO of Node40, a provider of blockchain accounting and tax software

Perry Woodin

“People who are going to benefit from Bitcoin Cash are the ones who see it as free money, so they can then invest in something else. It’s going to be a race to see who can sell it the fastest.”

Jason English, VP of protocol marketing for Sweetbridge, a provider of blockchain-based liquid supply services
“Cryptocurrencies are not required to behave according to the same rules as standard currencies, and even the original one, Bitcoin, still has plenty of room left for evolution. Whether the Bitcoin Cash fork is a success or merely an experiment, observing its issuance in the market advances cryptoeconomic knowledge and will likely improve resiliency for the whole sector in the long run. The only rule that will still hold true is that any currency only has value to the extent that people think it has value.”

Jason English

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