Roger Ver, a well-known investor in bitcoin-related startups and a prominent supporter of bitcoin adoption, has recently spoken about about why institutional investors should put their money into Bitcoin Cash (BCH) rather than Bitcoin (BTC).
Currently, institutional investors are confused, as the choice of the market and coins they should invest in is not an easy one. Roger was asked to explain why they should choose Bitcoin Cash over Bitcoin, especially when Bitcoin Cash has lost over 50% compared to Bitcoin in the last three months.
Bitcoin Cash is peer-to-peer digital money for the Internet. It sprang out on August 1, 2017, when Bitcoin network was officially forked into two separate blockchains creating two cryptocurrencies – Bitcoin and Bitcoin Cash. The main reason for the fork to take place was scalability problem – the original Bitcoin code had a maximum limit of 1MB of data per block, or about 3 transactions per second. Although it was technically simple to raise this limit, crypto enthusiasts failed to reach any consensus, even after years of robust debates. Bitcoin Cash supporters increased the block size, while Bitcoin supporters preferred to implement an off chain scaling solution known as Lightning Network.
According to Roger Ver, the institutional investors should first look at the Apple stock chart over time. The chart shows its huge growth. Then Roger mentioned how he bought Bitcoin when its value was less than just $1 dollar. In 2011, the value started growing and moved from $1 up to $30. After that, it dropped to $2, which was a 90% fall. However, the investor was sure about the prosperous future of Bitcoin, that’s why he didn’t sell any single coin he had.
Time passed, and Bitcoin’s price grew. Bitcoin went from over $2 to $20000, which was caused by mass adoption of the currency, as Roger explained. However, today the fundamentals of Bitcoin that triggered the increase in price are no longer present in Bitcoin, but do exist in Bitcoin Cash.
The reasons I started investing in Bitcoin in 2011 are the exact same reasons I’m investing in Bitcoin Cash today. pic.twitter.com/OpOV7OKeGN
— Roger Ver (@rogerkver) September 5, 2018
Some supported Roger’s arguments, while some did not. Dark “Not giving away Bitconnect” Savant said:
“It was a good question and he didn’t quite answer why an institutional investor would be interested. But if we are honest – I don’t see why an institutional investor would be interested in BTC either. Which institution will take risk of a 90% drop every 3 years? assuming rcvr.”
Rajarshi Maitra, a Twitter user, said:
“We are just tired of hearing the same arguments and conspiracy theories. The reason he did not gave any solid answer is because he doesn’t have any. Bcash was his bet to trick people into believing something as money, which indeed was an interesting act, but didnt work out.”
Bitcoin is currently the first digital currency in the market, while Bitcoin Cash is in the fourth position. In the last 24 hours, each of them grew 3% and 5.8% respectively. Bitcoin price at the moment of writing is $6,566.38 and Bitcoin Cash is valued at $460.90.
The debate between Bitcoin and Bitcoin Cash
On September 10, a YouTube channel published a video from the ongoing blockchain cruise in Spain. On the video, Bitcoin supporter Jimmy Song and Bitcoin Cash proponent Roger Ver debated with the purpose of rebutting each other.
After introducing himself, Jimmy Song said the following:
“Bitcoin Cash is a fiat money. You may be thinking that I’m exaggerating or trolling, I’m not. I’m stating a fact….Bitcoin Cash is interventionalist, paternalistic and Keynesian befitting its corporate roots.”
And the debate started. Ver and Song heatedly yelled over each other as the crowd jeered. Song raised many points about the centralization of Bitcoin Cash, and Bitmain’s influence over mining and development. Over the issue of BCH centralization, Roger Ver made an attempt to rebut and turn the argument around. It lasted more than 40 minitues. Finally, the debate ended with a 10-year bet between the parties, with Ver predicting that BCH would have a higher market cap than BTC over the next decade.