A new upgrade will see the block size of Bitcoin Cash (BCH) increased to 32MB from 8MB. The upgrade will also reactivate or add the script operation codes of bitcoin (BTC). According to BitcoinCash.org, this is only the first planned upgrade for the virtual currency. Some reasons given for the upgrade include, boosting future adoption and adding new functionality. Previously, some operation codes were disabled. Though, developers will reactive them since they found them compelling.
However, not all in the cryptocurrency community are supportive of the increased block size. Critics say that full nodes will now become more expensive to operate. This will carry the risk of reduced network decentralization and lower propagation speeds. Immediately after the software update, Bitcoin Cash fell by around 5%. It was however still trading at double the level it was at a month ago. At that time, founder and chief executive officer of investment firm, BKCM, predicted that the digital currency would increase in value towards the end of the year. Last month, Bitcoin Cash performed better than Bitcoin, Ripple (XRP) and Ethereum (ETH).
After the fall in value following the upgrade, the chief executive officer of Bitcoin.com and one of the leading proponents of Bitcoin Cash, Roger Ver, indicated that the price of the cryptocurrency would double before the year ends due to the fact it possesses utility.
“That’s what actually gives it it’s underlying value, that you can use it in commerce to pay for things. Whereas, a lot of these other tokens out there just kind of turn into speculative assets that don’t actually have any utility,” Ver told CNBC.
Though Ver was one of the initial investors in Bitcoin and even earned the moniker, ‘Bitcoin Jesus,’ he has recently taken to bashing the cryptocurrency. Though Bitcoin Cash forked from Bitcoin’s blockchain last August, the altcoin claims it is the original Bitcoin, and that it is superior because of lower transaction fees.
Smart contract capabilities is only one of many functions Bitcoin Cash will introduce. Transactions will then be carried out on a conditional basis. Satoshi Nakamoto removed smart contract capabilities in the early days of Bitcoin protocol development.