A New Way to Compare Bitcoin Cash to Bitcoin
Peter Ryan is a research analyst at CoinDesk.
The following article was originally published on CoinDesk Weekly. A customized curator newsletter delivered exclusively to subscribers every Sunday.
In Robert Heinlein's novel "Strange in a Strange Land," character Jubal Harshaw asks one of his secretaries to find out the color of the house in the distance. She replied, "This is white."
In other words, if you can only see from a certain angle, you can not be sure that you have the whole picture. This applies not only to physical objects, but also to cryptocurrencies.
It's unfair to claim that the price of a coin is not important, but it's just one of several ways to measure the success of a block-chain network. Taken together, these provide a more useful view of hourly cell phones than an obsessive checking of the US dollar rate. (Or every minute, part is not enough, it is not healthy)
To this end, CoinDesk Research's cryptographic economic compass shows more activity than simple price fluctuations. Compile a number of different sub-factors to form four complex tools: developer, network, social and exchange.
Let's use this multidimensional analysis tool to look at Bitcoin cash (BCH), which is an excessive currency recently celebrating its first birthday. Let's compare the original bit coin (BTC), which is regarded as the gold standard of cryptocurrencies along these five axes, and the isolated network.
Pricing and network
The best-observed statistic, the price, showed very little variation over the first year of the BCH. During most of that time, I kept about 12% of BTC. It rallied to the top of the BTC record high of 20% in the Fall Rally of 2017, but slowly returned to normal.
The network category represents activities related to the on-chain network. The volume of transactions in the BCH block chain remained below average 10% of the volume in the chain of BTC throughout the year.
However, last month, the number of transactions continued to increase to 30-50% of BTC. This can result in increased micropayments due to new app development or stress testing of large companies.
One such application is CoinText, which allows users to send and receive BCHs via text messages.
CTO Vin Armani (Vin Armani)
"When high commissions and slow confirmation times began to plague BTC, I disrupted the Bitcoin project, which I have been working on for years and years … I know I'm not alone in feeling depressed … Last year While Bitcoin Cash brought hope and creative exploration back to the beat coin. "
Exchange and Developer
Exchange activities were a little more varied all the year round.
The BCH trading volume on the exchange reached a record high in 2017. Even on August 19 and November 11, BTC's trading volume was briefly exceeded. There are currently more than 100 exchanges listed on the BCH, many of which have added support in the third quarter of 2017.
However, if the general password rally in the fall of 2017 expires, the exchange activity declined to 8% of BTC and 12% of the second quarter.
Developer activity at the protocol level is relatively low compared to the BCH. While the benefits of legacy legacy code were forked, the isolated network did not retain the same level of developer interest as BTC.
On the other hand, the most unique observation is about the high level of bitcoin cash of about 57% of BTC's social activities.
The sub-factors that make up a significant part of this phenomenon are publications for BCH-oriented r / btc subpublications. Another important social media advantage is that it has a @bitcoin twitter handle with followers and followers.
It looks like the online community with high engagement has grown offline. Event meetings have grown steadily. According to the BCH Fund, there are 101 meetings in 40 countries and about 12,000 members.
In this way, cryptography reveals all aspects of the house and represents a more holistic understanding of the state of the ciphertext.
The BCH on-chain and developer activity is lower than BTC, but as you guess, Exchange activity fluctuates dramatically. The price of Bitcoin cash was able to stay maritime last year thanks to a small but strong social group that revitalizes this coin.
Image of measurement tool with Shutterstock
CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
(f.fbq) return; n = f.fbq = function () n.callMethod?
n.callMethod.apply (n, arguments): n.queue.push (arguments); if (! f._fbq) f._fbq = n;
n.push = n; n.loaded =! 0; n.version = & # 39; 2.0 & # 39 ;; n.queue = ; t = b.createElement (e); t.async =! 0;
t.src = v; s = b.getElementsByTagName (e) ; s.parentNode.insertBefore (t, s)} (window,
Document, & # 39; script & # 39 ;, & # 39; // connect.facebook.net/en_US/fbevents.js');
fbq (& # 39; init & # 39 ;, & # 39; 472218139648482 & # 39;);
fbq (& # 39; track & # 39 ;, & # 39; PageView & # 39;);