BitMEX Research published an article on 22 March analysing Segregated Witness (SegWit) transactions in comparison to Bitcoin Cash, and the results aren’t looking too good for the latter cryptocurrency.
SEGWIT Is Preferred for Transactions
Bitcoin Cash was developed as an alternate coin with larger blocks unlike Bitcoin’s Segregated Witness (SegWit) upgrade that optimized block weight in August 2017. SegWit provided the option for Bitcoin users to upgrade their wallets and get 41% more capacity, while Bitcoin Cash necessitated users to upgrade their wallets, take on a new transaction format, and use a completely new coin.
SegWit is attracting more and more transacting users, and at its current rate, it seems unlikely that Bitcoin Cash will ever come close to its level. According to BitMEX’s Research, 6.1 million SegWit transactions have occurred since the apparition of Bitcoin Cash, a 20.1% more than Bitcoin Cash’s overall number of transactions. Though, Bitcoin Cash had an extra month before SegWit’s launch. When you also take into consideration the timeframe, SegWit has in reality a 31.5% advantage over Bitcoin Cash.
Transaction figures also show that SegWit was incorporated at a considerably steadier rate than Bitcoin Cash, and surpassed its contender early on.
“There was a sharp spike in Bitcoin Cash transaction volume when it launched; in contrast the SegWit upgrade was more gradually adopted. This is likely to be related to the investment flows and excitement of the new Bitcoin Cash coin, which may have driven short term adoption […] Three months after the launch of Bitcoin Cash, on 31 October 2017, SegWit transaction volume overtook Bitcoin Cash and has remained in the lead ever since,” noted the BitMEX Research.
In addition, BitMEX Research adds that “adoption of SegWit has continued to grow since August 2017, perhaps increasing in steps as large corporate entities switch to SegWit.”
SegWit has been extremely beneficial for those who haven’t adopted the new format.
“SegWit has begun to meaningfully impact system-wide capacity, potentially reducing fees and benefitting even users who choose not to upgrade to the new transaction format,” reads the BitMEX Research.
Even though SegWit’s is clearly in the lead, Bitcoin Cash advocates will undeniably continue to make references towards the original concept of decentralized cryptocurrencies, which includes cheap transactions.
However, Bitcoin fees have never been cheaper, which has meaningfully weakened the plans of big block devotees in recent months while Bitcoin’s emerging Lightning Network is already providing prompt and even cheaper transactions.
In the meantime, many enthusiasts of Bitcoin (BTC) will continue regarding Bitcoin Cash a scamcoin or an inferior copy, which tries to incorporate the Bitcoin image against the setting of an ineffective propaganda movement.