Friday, December 8, 2017

Bitcoin, Bitcoin Cash and Dash - What's Best?

I would like to share some experiences and observations with you concerning Bitcoin, Bitcoin Cash and Dash and hopefully cryptocurrency newbies and cryptocurrency evangelists will both be able take something interesting away from this post.


Bitcoin, the original cryptocurrency is, of course, the most expensive cryptocurrency to move between wallet addresses. I have been paying around $4.00 (0.0003 btc) to send Bitcoin in a relatively timely manner recently. At this fee it seems to take about an hour or less to successfully send Bitcoin from one wallet to another. Check the transaction fee that your wallet is set at so that it is not too low or too high. If it is too low it may take hours or days to go through. If the transaction fee is set too high then you will be throwing away money but getting a fast transaction. If you're in line at the store and paying with Bitcoin, then a high transaction fee is what you would have to pay to complete the purchase in a timely manner. But I don't suggest paying for small items at the store with Bitcoin. The other coins I talk about below would be better for that. In the near future Bitcoin may be paired up with something called the Lightning Network which will make Bitcoin transactions cheaper and faster but so far this is not near implementation as they have only done testing on it, so Bitcoin in 2017 and much of 2018 is better for holding or trading as an investment or for buying big purchases or moving larger amounts of money from one place to another. (One BTC is about $15,000 on 12/8/2017)


Bitcoin Cash is a child of its parent Bitcoin, though if it were up to the Bitcoin developers Bitcoin Cash would meet an untimely death. Since the Bitcoin community could not come to terms with its problems, Bitcoin Cash was created as a fork off of the Bitcoin blockchain. Bitcoin Cash is really Bitcoin 2.0 if you ask me. It is Bitcoin improved. It has much lower fees, sends faster, and has larger blocks on the blockchain. I have been sending Bitcoin Cash using fees that are pennies and the transactions are blazing fast indeed. Bitcoin Cash is certainly a great candidate to supplant Bitcoin as the payment method for everyday purchases. It is so much cheaper and faster to use. While it has proponents pushing its use in the marketplace Bitcoin Cash has no central governance structure and so its acceptance in the marketplace is reliant on no one in particular, making its adoption as the future go-to coin kind of sketchy. (One BCH is about $1375.00 on 12/8/2017)


Dash (Digital Cash) is the other cryptocurrency that has real potential to become the cryptocurrency for everyday purchases and money transfers. Like Bitcoin Cash, Dash is very fast and very cheap to use. Not only that but it has a great smart phone app that is a multi-feature wallet which makes it extremely easy to send and receive Dash. Unlike Bitcoin Cash, Dash has sort of a corporate structure, which is funded by the coin transfer fees, that can market the coin's usefulness to consumers and businesses alike and seeks to make partnerships with businesses. This makes Dash the most likely candidate for wide marketplace adoption compared to Bitcoin Cash which does not have any single controlling entity mapping out where it will go in the future. Though decentralization is good and part of the appeal of cryptocurrencies, as we have seen with Bitcoin this leads to indecisiveness, bickering, infighting and lack of direction when it comes to adoption in the marketplace. Dash's corporate-like control will ensure a better marketplace penetration and adoption, leading, I believe, to eventual dominance as the cryptocoin for everyday transactions. (One Dash is about $700.00 on 12/8/2017)

The future is not clear at this moment as to which of these coins, or perhaps one of the other dozens of coins out there, will become the dominant cryptocurrency for everyday transactions. Maybe there is room in the marketplace for multiple players just as there is in the credit card market or the cash transfer marketplace. It is an exciting time, however, as the process evolves and plays itself out. 

Check out Crypt0's youtube channel for informative and fun videos about cryptocurrencies. Omar's take on Bitcoin and other cryptocurrencies is definitely worth your time.

Coindesk.com is another good source of information concerning Bitcoin news and prices.

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