In a Monday phone interview with CNBC Fast Money, Roger Ver explained why he believes Bitcoin Cash is a better investment than Bitcoin, also expressing that Bitcoin isn’t efficient for commerce due to high fees and low transaction speeds.
Bitcoin Cash Rules
In the interview, Ver, who owns and operates Bitcoin.com, begins his explanation of why Bitcoin Cash (BCH) is a better investment than Bitcoin (BTC), by saying that the latter’s slow transaction times and high fees make it bad for commerce, and that Bitcoin Cash offers the solution to this.
“Bitcoin is no longer…usable for commerce at all. The fees became high, the transactions became slow and unreliable, and people like myself and everybody else who was actually trying to use it for commerce stopped and switched to something else, and that something else looks most likely to be Bitcoin Cash for the most number of people.”
Ver is referring to the long transactions speeds that came about as a result of the meteoric price rise Bitcoin saw in late 2017, for which Bitcoin’s network wasn’t prepared to handle, resulting in high fees and slow transactions. That being said, in the time since, Bitcoin’s transactions fees have dropped greatly due to the price decrease and increased scalability.
Bitcoin Vs. Bitcoin Cash: Price and Transaction Volume
According to bitinfocharts.com, Bitcoin’s on-chain transaction fees peaked along with its price in late December at nearly $60, falling to a low of about $0.49. In comparison, Bitcoin Cash’s on-chain transaction fees peaked at approximately $0.9, falling to a year-to-date low of about $0.003.
As for Bitcoin and Bitcoin Cash’s prices, Bitcoin has done significantly better than Bitcoin Cash in 2018. According to CoinMarketCap, Bitcoin is currently sitting at $6,750, down from its all-time-high of just under $20,000. Bitcoin Cash, in comparison, is currently at $535, down from its high of nearly $4,000 in December.
Responding to a question from CNBC’s Melissa Lee regarding Bitcoin Cash’s poor price performance, Ver said that he has seen 90% price decreases in Bitcoin before, which only preceded exponential price increases. He added that:
“In investing or in hockey, you don’t skate to where the puck is currently, you skate to where it is going to be in the future, and it is very very clear that all the adoption and the merchants and all sorts of businesses are being built on top of Bitcoin Cash at this point, so for the future, I think Bitcoin Cash is the best investment…”
Importantly, Ver also added that it is incredibly important to diversify, telling Lee that he doesn’t recommend putting all the eggs into one basket, and adding that he himself is diversified and “holds more Bitcoin Cash than anything else, but I have some Ether, some Zcash, some Zcoin, some Monero, some Dash, and some BTC as well…and some Ripple and some Stellar,” emphasizing that it is incredibly important to have a diversified crypto portfolio.
He also added that he is more diversified than he was in the past, moving away from Bitcoin because “the Bitcoin people had this absolutely insane idea in their mind that high fees and slow transaction times were a good thing.”
The cryptocurrency community is split on Bitcoin Cash, with many people believing like it is a shadily marketed scam that doesn’t offer anything more than Bitcoin, and many believing that it is in fact a far more efficient version of Bitcoin, achieving the goals that were originally intended for Bitcoin.
Cryptocurrency mining giant Bitmain is a notable supporter of Bitcoin Cash, with reports claiming that the company owns a higher quantity of Bitcoin Cash than Bitcoin, holding 1.02 million BCH, while holding 22,082 BTC, as of March of this year.
Featured image from Shutterstock