Bitcoin Cash (BCH) is hard forked to a 32MB block size on May 15 despite having 99 percent of block size unutilized. Liquidity issues have seen the cryptocurrency, delisted from two crypto exchanges in recent months.
Does BCH Really Need 32MB Blocks?
One of the most significant challenges that Bitcoin Cash faces have to do with the fact that it is not being used as much as its backers claim. BCH’s cash block, which is a measure of the bundles of transactions processed isn’t as big, as many would have expected.
BCH is utilizing on average about 1/160th of its 8MB block size. What this means is that only 50kb of the block size is currently being used, underscoring the reduced number of transactions being carried using the coin.
BCH block size. Source: BitInfoCharts
Block Size Increase Deficiency
Despite the low transaction volumes, Bitcoin Cash developer team implemented a fourfold increase in the altcoin’s block size. The block size is being increased to 32MB even though the current 8MB is not being used to capacity. In contrast, bitcoin, which is the most popular cryptocurrency, has a maximum block size of 1MB.
Bitcoin Cash is essentially providing a solution to a problem it does not have as it moves to increase the block size. Such a move would only have made sense if the cryptocurrency was eliciting strong demand in terms of transactions.
The insistence of block size increase, despite a lack of demand, underscores how the developer’s team is out of touch with sentiments on the ground. The proposed expansion has already elicited backlash with Chief Strategy officer at Blockstream Samson Mow summing up what the increase amounts to in a tweet.
Low Transactions, Low Liquidity, and Delistings
Bitcoin cash transactions are a shadow of daily transactions carried on Dogecoin (DOGE), a cryptocurrency that came into being as a joke. Reduced number of transactions carried on the token has essentially led to liquidity problems for some cryptocurrency exchanges.
DOGE > BCH? Source: BitInfoCharts
In March 2018, OKEx, one of the largest cryptocurrencies exchanges, ended support for Bitcoin Cash citing inadequate liquidity.
BCH sentiments have yet again suffered another blow after the Netherlands’ largest cryptocurrency exchange, BL3P, ended support for the altcoin. The exchange has been planning to stop support for quite some time but decided to move forward ahead of the May 15 hard fork.
“Since there already was a planning for the removal of Bitcash the hard fork has become a reason and strict deadline for the removal of Bitcash from BL3P. BL3P maintains a strict selection policy when it comes to support for altcoins, Bitcash, unfortunately, does not meet these requirements”, the blog post reads.
Australians Can Pay Utility Bills With Bitcoin (BTC)
Bitcoin (BTC)–In terms of adoption for cryptocurrency, being able to pay for real world goods and services with the digital currency has long been viewed as the gold standard. The bear market of 2018 has led to a shift in focus away from the fundamentals of crypto and the usability of blockchain transactions in favor of wild price speculation. However, an Australian-based partnership is attempting to provide a solution for customers looking to pay their utility bills with cryptocurrency.
Cryptocurrency exchange Cointree announced a joint-venture with billing platform Gobbill to give Australian customers the opportunity to pay their utility bills with cryptocurrency. The goal of the union is to provide a solution for automated billing via crypto, with Gobbill functioning as the intermediary in the exchange, taking user funds in crypto and making the payment in fiat.
Using the Cointree wallet, users of the cryptocurrency exchange will be able to convert stored coins automatically into utility bill payments, giving customers the opportunity to pay in BTC, XRP, and nearly 40 other currencies. While Australian utility companies will not be accepting crypto directly for payment (the exchange involves a conversion to fiat), it does represent a way for Australian crypto users to get around having to cash out of their denomination on exchanges to free up funds for utility payment. The service is being aimed at small businesses and average investors, with the co-founder and CEO of Gobbill, Shendon Ewans, expounding upon the planned form of payment,
According to Ewans, Gobbill views this partnership with Cointree as getting ahead of the curve, a refrain we have heard several times from tangential businesses attempting to capitalize on cryptocurrency. By offering a service that automatically takes payments in cryptocurrency, Gobbill is exposing itself to the growing, and vocal, userbase of cryptocurrency, in addition to paving a future for their company that involves a takeoff in the digital currencies.
Cointree also sees partnerships for bill payments and automatic drafting as a way to increase their customer base, with efforts already enacted for several years on the front of crypto-to-bill payment. Jess Rendon, operations manager of Cointree, reported that the company has processed $100 million in bills paid in 2017,
“Last year alone we had about AU$100 million of bills paid and saw ten times growth in this payment feature.
CCN reports that paying bills with cryptocurrency has seen an explosion in Australia over the last several years, having grown by 3300% in a three-year period. While the system devised by Gobbill is still a step removed from utility companies accepting Bitcoin and altcoins directly, it does provide another avenue for investors looking to use their coins outside of exchange speculation.
Biometric Cryptocurrency Card Protects Bitcoin with Fingerprints
Unikeys has officially announced its UKey cryptocurrency card.
In form, it’s shaped like any other regular payment card. But it’s designed to host multiple popular cryptocurrencies including Bitcoin, Bitcoin Cash, Ether, and Litecoin. What’s more, it features an embedded fingerprint sensor. Once a user’s fingerprint data has been registered and stored in the card’s Secure Element, the card is then able to biometrically authenticate the user for each transaction, ensuring a high level of security.
The biometric component is the product of a collaboration between Unikeys and Hong Kong-based MeReal Biometrics, which obtained its fingerprint sensor technology from Sweden’s Fingerprint Cards. Fingerprint Cards has been very busy in recent months seeking to secure a leading position in the biometric cards market as major financial services brands like Visa and Mastercard prepare for mass commercialization of this kind of technology; Unikeys, for its part, is ahead of the curve.
Of course, a key to success for the latter company will be establishing merchant support for its card’s cryptocurrency payments, and as RFID Journal reports, Unikeys is currently in talks with “several companies” concerning this issue. Unikeys’ CEO says the company is also planning to launch a pilot for its solution in Hong Kong, though details about the project are forthcoming.
Bitcoin This Week: Square’s Cash App Extends BTC Services, Bitcoin Adoption Years Away And More
Today on Bitcoin This Week we comment on Square’s Cash App recent announcement of extending its Bitcoin services to all Americans, we discuss Coinbase CEO comments on why he thinks Bitcoin adoption is years away and much more.
Saudi Committee Leaves No Doubt About Bitcoin Status
Saudi Arabia has reminded its citizens that trading in Bitcoin and other digital assets is expressly forbidden in the Kingdom, citing Bitcoin’s “high risk” and, what it terms as “negative consequences” for investors.
There were certainly negative consequences for investors this week, with Bitcoin falling back to within touching distance of its lowest 2018 price, before recovering on Wednesday. The paternalistic Saudi government, meanwhile issued its warning through the “Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Markets” pronouncing it was doing so to protect its people from “get rich” schemes and the dangers of transferring funds to unknown recipients.
Bitcoin Settling More Transactions Than Gold
Bitcoin, as everyone knows, has dropped in price considerably since the start of 2018. It might surprise investors to learn, therefore, that in terms of settled transfers, the cryptocurrency is outpacing gold.
Nick Carter, a researcher at Coin Metrics, published statistics on Twitter comparing Gold settlement volume so far this year with Bitcoin. He used the statistics of the London Bullion Market, stating that it represented at least 70% of all gold traded globally. It would appear that the Gold market is likely to complete under $500 billion transfers this year. Bitcoin, however, has already transacted over $800 billion worth and is well on course to exceed one trillion dollars in settled transfers by the end of the year.
We Are Years Away From Bitcoin Adoption – Coinbase CEO
In crypto adoption terms, the world is roughly where it was with internet adoption back in 1998 according to Coinbase CEO Brian Armstrong. Speaking to Forbes, Armstrong was bullish about cryptos chances of succeeding in countries that are experiencing turmoil, such as Venezuela and Turkey, but said that we were years away from being able to use Bitcoin and other cryptocurrencies on a day to day basis.
In Armstrong’s opinion, only around 10% of Bitcoin produced is used in real-world settings, citing video games as a specific use case where cryptocurrencies have seen a reasonable level of adoption.
Square’s Cash App Now Offering Bitcoin To All Americans
Coinbase will see increased competition in the United States with the announcement this week that Square’s Cash App has extended its Bitcoin trading services nationwide. It had previously only been available in some U.S. states.
Cash App allows users to send money easily through a simple cellphone app. It received a license to offer Bitcoin services to New Yorkers in June, having recorded a positive response to its crypto services. Unsurprisingly, the announcement that Square had expanded its services nationwide was made by tweet as Square CEO Jack Dorsey is the co-founder of Twitter.
Markets – Almost Rock Bottom For Bitcoin
There was some relief for Crypto markets on Wednesday after an early week meltdown sent the market spiraling downward. Bitcoin was far from being the worst affected however, and by Wednesday had largely recouped the losses suffered in the previous couple of days. But its value, even with this recovery, was almost $2000 down from late July.
On Sunday, Bitcoin opened at $6283, and closed up at $6322. Monday saw a sharp decline when it hit $6225. But worse was to follow. On Tuesday, the crypto market was in freefall, Bitcoin trading for under $6000 for the first time since late June, closing the day having recovered to just under $6200. Wednesday was better, with a steady upward curve sending the coin towards $6500 around noon. To see current prices click here.