Analysis

Is Bitcoin Cash at crossroads following $30million theft

Bitcoin Cash has been a puzzling cryptocurrency since its inception in 2017 as an alternative to Bitcoin. The cryptocurrency has received close scrutiny in recent days following the alleged theft of $30, million from one of the top whales within its ecosystem. 

Bitcoin Cash was developed as a scalable alternative to Bitcoin

Bitcoin Cash was developed as a growing need to a major problem of Bitcoin which was scalability. When Satoshi Nakamoto introduced Bitcoin in 2008 s a radical means to overturning the existing financial system. 

It was always burdened by the issue of scalability that would exist when trying to execute operations as the number of users increased. This was seen as the major flaw that prevented Bitcoin as a feasible currency for customers when buying from merchants. 

This was laid bare in 2017 during the crypto bullish era where the execution time of transactions exceeded 30 minutes. A debate ensued within the crypto community about the possibility of making crucial updates on Bitcoin blockchain that would largely address the problem. 

However, there was no consensus and the idea was largely rejected by the Bitcoin community. The aftermath of this major issue led to a group forming an alternative currency that would be easily scalable and achieve the ideals of a fiat currency. 

Since then several groups have broken out from Bitcoin Cash with Bitcoin SV and Bitcoin Gold resulting from the breakaway. 

Bitcoin Cash currently trending after $30 million theft

This latest case could be a huge one for the coin after one of the largest whales of Bitcoin Cash claimed that $30 million was stolen from his wallet. This sparked a debate on Twitter about the security of the cryptocurrency. 

It is thought that the victim of the hack was the founder of Dreamhost Josh Jones who also lost around 1500 BTC in the process. There have been speculations of how these occurred with some reports claiming that his Sim card was compromised. 

It could also be that the hackers were able to access his system via other means to complete the theft. Nevertheless, the news comes at the wrong time as Bitcoin Cash has been undergoing difficulties. 

There have been confrontations between Bitmain executive and Bitcoin.com founder Roger Ver regarding certain issues within Bitcoin Cash ecosystem. 

It would be interesting to see how these events would shape developments within the cryptocurrency ecosystem in the coming weeks. 

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