According to Emil Oldenburg, bitcoin is not an investment that anyone should be making right now. Not all bark and no bite, the CTO of Bitcoin.com claims to have sold all his holdings in the digital currency and invested wholly in Bitcoin Cash.
“I would say an investment in bitcoin is right now the riskiest investment you can make,” he warned.
Oldenburg is far from the first person to bash bitcoin publicly, or to express a firm belief in its supposed impending doom. However, his reputation within the cryptocurrency community has added weight to his statements.
According to Oldenburg, the slow transaction speeds and ever-increasing transaction fees are the reason for his bitcoin break-up. His complaints are not unjustified, as it is not unusual for bitcoin transactions to take up to five hours to complete. Additionally, the transaction fees may increase by up to 100 percent four times a year – with fees reaching $26 per trade.
Bitcoin Cash has notably lower fees, coupled with quicker transaction processing ability and greater scalability. As was Bitcoin’s intended purpose outlined by Satoshi Nakamoto, it can be considered an upgrade in many ways. “The old Bitcoin network is as good as unusable,” iterated Oldenburg, not one to mince words.
Through Oldenburg’s various business interests and cryptocurrency career, he has been primarily invested in bitcoin. His past three years’ salaries have been paid in bitcoin, and he has also disclosed that Bitcoin.com’s most substantial revenue stream has been through bitcoin mining, although not providing the exact amount generated by it.
Naturally, his sudden change of opinion has turned heads in the cryptocurrency industry, with many investors and financial professionals beginning to doubt a positive future for bitcoin.
Oldenburg went on to explain further his reservations with the pioneering digital currency. As he puts it, it is not the trading, selling or buying of bitcoin that is the root of the problem, but rather the process of recording the transaction on the blockchain.
As the number of transactions per second for the entire blockchain is limited and hinge on the memory size of the “block” each piece of information is stored on, the currency becomes highly impractical for everyday transactions.
“As soon as people realize that this is how it works, they will start to sell,” he said.
When the two are compared head to head, it becomes increasingly clear why Oldenburg carries this opinion. Bitcoin block size limit is one megabyte, whereas that of Bitcoin Cash is a significantly higher eight megabytes.
Furthermore, the current transaction fee for the latter cryptocurrency, as of December 20, 2017, is a mere $0.012 – an amount so negligible it is almost nothing. Coupled with Bitcoin Cash’s incredibly fast processing speeds, it is the obvious choice when seeking out the most functional currency that harbors the highest potential for the future.
Ultimately, the decision of which cryptocurrency to invest with remains that of each investor. It would not be surprising if people continued to invest with bitcoin, as the value of the digital currency is not directly linked to anything other than demand and supply. It would also not be far-fetched for the value of bitcoin to plummet, sooner or later, as the gap between its value and functionality continues to widen.