After Tesla rejection of „fork products“: Bitcoin Cash hits new lows vs. bitcoin
The vehicle manufacturer has deleted a warning that said people should not use Bitcoin Cash or Bitcoin SV for payments. But the BCH/BTC pair has already taken a hit.
Controversial Bitcoin (BTC) offshoot Bitcoin Cash (BCH) has hit new all-time lows against its fork parent after Tesla publicly refused to accept it by Bitcoin Billionaire in payments.
On Twitter, CEO and „technoking“ Elon Musk confirmed on 24 March that US customers can now buy Tesla vehicles with BTC. However, his company does not accept „fork products“ such as BCH.
Tesla: Nothing but BTC
Bitcoin Cash split from the Bitcoin blockchain in August 2017 and has been a controversial entity within the cryptocurrency space ever since.
Proponents claim it is superior to Bitcoin because BCH fees are far lower. Transactions would also take less time to settle and require fewer resources.
Over the years, this has been expressed in various ways. Proponents are partly passive and partly argumentative. But the BCH/BTC pair continues to hit new lows. On Wednesday, BCH was worth less than 1 percent of a bitcoin for the first time, 0.089 BTC for 1 BCH to be precise.
Tesla’s bitcoin acceptance has apparently encouraged the downward trend. The documents said BCH and bitcoin cash hard fork Bitcoin SV (BSV) would not be accepted as payment.
„You cannot make purchases with us using other digital assets, including Bitcoin fork products such as Bitcoin Cash and Bitcoin SV,“ the company said.
„Our Bitcoin digital wallet is not configured to recognise or receive any digital assets other than Bitcoin.“
Kim Dotcom criticises Lightning Network
The wording was met with incomprehension from BCH holders, who often refer to the altcoin as the „real“ Bitcoin. Among them was entrepreneur Kim Dotcom, who criticised Musk for the phrase.
„Try buying a soda with bitcoin,“ he tweeted indignantly.
Tesla has since removed the content and only warns buyers not to send cryptocurrencies other than Bitcoin to the BTC address. However, this has not put an end to the discussion, as advocates from both camps continue to argue over the issue.
„Satoshi did not envision Bitcoin as a new class of banks controlled by the same corrupt power structures as our current financial system,“ Dotcom continued.
„Custodial solutions like Lightning do nothing to change our broken system. Users need to be in control of the keys to their digital money, not third parties.“
Musk responded with his familiar nonchalance, saying Dotcom made a „good point“ about transaction fees. He also noted the proposal to accept Dogecoin (DOGE).
Bitcoiners argue that BCH is almost worthless compared to Bitcoin, despite the lower fees. This is because Bitcoin has survived several tests with its blockchain and still has a spotless 12-year proof-of-work history.
BCH, on the other hand, cannot yet. As its hashrate steadily declines compared to BTC, the cheap cost of use is accompanied by an increasing decline in security and usefulness as a store of value.