In the context of the huge price surge which the cryptocurrency has seen this year, some might be puzzled at Oldenburg’s move to sell. Speaking to BReakit, the Swedish tech site, he explained that one of the reasons he is selling is the limited numbers of transactions per second which is possible with bitcoin. According to Oldenburg, because bitcoin transactions are reliant on ‘block size’, the future of bitcoin as a currency for transactions is limited.
He said: “As soon as people realise that this is how it works, they will start to sell. The old bitcoin network is as good as unusable.”
Oldenburg went on to admit: “I would say an investment in bitcoin is right now the riskiest investment you can make. There’s an extremely high risk. I have in fact sold all my bitcoins recently and switched to bitcoin cash.”
Some reports suggest that transaction fees for bitcoins are doubling every three months, with four and a half hours on average needed to confirm bitcoin transactions.
Oldenburg’s Bitcoin.com has performed well in recent times, in large part owing to its mining pool, which produces new units of bitcoin and releases them onto the market.
Bitcoin cash is able to facilitate lower transaction fees thanks to its larger block size limit – 8Mb as opposed to the 1Mb offered by bitcoin.
So what do you make of bitcoin cash? Does it really have the potential to become the cryptocurrency of choice?
Forbes magazine recently reported that its price surged by as much as 24 per cent in just 90 minutes.
Roger Ver, the noted Silicon Valley investor and prominent advocate of crypto, has also thrown his support behind bitcoin cash. He opined recently in a Tweet: “The jump to #BitcoinCash is an order of magnitude easier than the jump to the lightning network would have been.”
Another theory is that the market volatility which might lie ahead for bitcoin could provoke investors to look at crypto alternatives such as bitcoin cash.