Why did Bitcoin.com Co-Founder Cash out his Bitcoins for Bitcoin Cash?
Emil Oldenburg, the chief technology officer and co-founder of Bitcoin.com, recently traded in all his Bitcoins (BTC) to cash in on Bitcoin Cash (BCH), a spinoff cryptocurrency of the original Bitcoin. He reported in an interview with Swedish website Breakit that investing in Bitcoin now could be the most insecure investment type that a person could make and believes others will pull out after realizing the illiquidity of the market.
“An investment in bitcoin right now I would say is the riskiest investment you can make. It is an extremely high risk. I've actually sold all my bitcoins recently and switched to bitcoin cash,” he said.
Because of certain drawbacks, like the high transaction fees and the long lead time to process transactions, Oldenburg doesn’t believe BTC will be able to evolve to an everyday currency. In recent weeks, the average cost to complete a transaction has inflated from about US$6 to US$26! “It costs a lot to transfer bitcoins to and from the stock exchanges," he said. "When I sold my bitcoin, I had to pay US$50 and wait 12 hours for the transaction to go through because of this. It's completely unreasonable."
Oldenburg goes on to say that the reason why bitcoin holders don’t know this is because most have only bought the cryptocurrency but have never sold or traded them. He claims: “when people realize how bitcoin works, they will start to sell.”
Although bitcoin’s value has skyrocketed this year, it is because of the immense influx of users that has increased tension on the network that can only process a finite number of transactions per second. With a block size limit of 1Megabyte, BTC is sure to be no competition to BCH’s block size of 8Megabytes. With a larger block size, BCH would lead to lower transaction fees, no lead times and a safer, more liquid investment. “The only drawback is that you need larger hard drives, but that’s not a problem for most people,” Oldenburg says.