Adapting to the ever changing market of cryptocurrencies

Two days ago, my wife and I were discussing Bitcoin and the Blockchain. I told her about Roger Ver and how he inspired me to buy my first Bitcoin. I told her that he is a huge proponent of BCH (Bitcoin cash) and that he helped to start Bitpay along with Bitcoin.com. She asked, "If you believe in this guy so much, why don't we own any BCH and why do you keep backing Bitcoin?" I didn't have an answer for her and it caused me to reevaluate my decisions in cryptocurrency investments.

Yesterday, the Segwit2x hard-fork was cancelled essentially making BCH the only competition to Bitcoin that shares the original blockchain. The difference between BTC and BCH is the block size. BTC = 1mb block, BCH = 8mb Block. Why is this important? As the cryptocurrency community grows so do the number of transactions naturally. Currently, BTC can handle 7 maybe 8 transactions a second and with millions of transactions posting each day, it can take several hours for each to process as they wait their turn to be mined. A solution is needed if Bitcoin is to survive and grow.
It all comes down to scalability. I once had the great opportunity to spend time with the owner of Squaremouth, Chris Harvey. He built a wildly successful travel insurance company through patience and perseverance. Chris educated me on many important aspects of a business. "The most important aspect of growth is scalability," Chris told me one night after a few beers and ciders.

Scalability is the biggest self-made roadblock that Bitcoin faces. If the block size remains 1mb, there is no hope of increasing the transaction rate without altering the code and possibly compromising the original intent for what Bitcoin was supposed to be. Which is, a truly decentralized anonymous currency that allows for the safe and secure transaction of value across the planet out of reach of government control governed by the rules of math stored on an immutable blockchain offering the highest form of security against hacking and greed the world has ever seen. Bitcoin takes the power from the centralized banking cartels and the governments who support them and puts it in the hands of the people.

Enter BCH. Bitcoin cash with its 8mb block size can currently handle around two million transactions per day. Compare that to the average number of Visa transactions per day around one hundred and fifty million and you can see that BCH has a long way to go especially if you consider the estimated "maximum" transactions per day Visa can handle around two billion seventy-five million. Although BCH can only handle a fraction of Visa's volume it's still miles ahead of Bitcoin. Bitcoin can currently process two hundred and fifty thousand transactions per day with no obvious or easy solution in sight. The Segwit2x hard fork was an attempt to solve Bitcoin's scalability problem by increasing the block size to 2mb. This would have created a branch off of the original Bitcoin chain creating Bitcoin gold, a new cryptocurrency carrying the bitcoin name with a larger block size. It was canceled because the consensus (the supporting group of miners) fell apart making BCH only viable option for scalability to date. I sold all my positions in BTC, ETH, and LTC today. The proceeds went to buying BCH at around noon.

Scalability is the next big step that will allow for mass adoption. Whoever gets there first will win the battle for market share.

Thanks Chris