Bitcoin Cash has finally come a bit to life with the currency up some 7% yesterday while bitcoin was down 7%.
That’s on somewhat increased volumes for both, with the ratio looking a bit interesting.
This is zoomed in quite a lot to just one hour. A longer time-frame would have shown BCH was 10x more valuable against bitcoin just last year.
It plunged, as did most other cryptos, while BTC managed to retain its value, hence the ratio dropped some 10x.
Now, for BCH and for ETH too, the ratio is rising. The question in everyone’s mind is why?
That’s probably what everyone is thinking, and one of the narrative towards it seems to have been a revival of a March 2019 Trustnodes article that brings back the scalability debate.
Peter Todd argued that as time goes on, there may be a case to be made to cancel the halvenings because fees might not be enough to support mining at 1MB blocks or maybe 2MB for segwit.
The BSV gang in particular likes that article a lot, but it has reflected on BCH because they plan to increase capacity in line with demand.
Moreover ethereum’s complex sharding solution to scalability may have returned some attention back to BCH where its approach is somewhat unique among cryptos as it plans to do what Satoshi Nakamoto suggested, just increase the blocksize.