BitMEX, the world’s largest crypto trading platform, compares the use of the two competing Bitcoin models SegWit and Bitcoin Cash in a report. The analysts note that the SegWit option, which has been chosen by the majority, is still in the lead. However, Bitcoin Cash’s trading volume is also growing.
The dispute over direction within the Bitcoin community kept the crypto scene in constant suspense in 2016 and 2017. If one side wanted to tackle the scaling problem with the SegWit update and a long-term second layer solution, the other side argued for an expansion of the block size. Until the end, attempts had been made to keep the store together with compromises such as SegWit2x and to prevent the Bitcoin community from breaking up.
But even after the inevitable hard fork was finally carried out in August 2017, the dispute did not come to an end. The only difference was that it was no longer a dispute of direction within the Bitcoin community, but a battle for the sovereignty of interpretation between the two newly formed camps. The debate between the representatives of Bitcoin (with SegWit) and Bitcoin Cash mostly focuses on user-friendliness on the basis of good scalability.
BitMEX: SegWit used more frequently
BitMEX, the crypto marketplace with the largest volume traded worldwide, compares both scaling solutions in its latest report. The report looks at the proportion of SegWit transactions on the Bitcoin blockchain and the number of transactions with SegWit and Bitcoin Cash. The authors of the report conclude that the solution once preferred by the majority of the community is still dominant.
Since the chain split, the SegWit adoption has been growing slowly but steadily. The chart, which shows the daily Bitcoin transaction volume, is basically in an upward trend. It can be said that SegWit is now used in a good 50 percent of all daily Bitcoin transactions. In the long run, SegWit seems to be gaining acceptance.
SegWit vs Bitcoin Cash:
While the number of SegWit and non-SegWit transactions on the Bitcoin blockchain approach each other, Bitcoin Cash lags behind. On average, the daily transaction volume of Bitcoin Cash is about ten percent of the Bitcoin transaction volume. The “stress tests” carried out for Bitcoin Cash in August and September, however, cause aberrations upwards and somewhat distort the picture. At that time, the Bitcoin Cash network was tested with a large number of transactions – and passed.
The stress test also has an impact on the total volume of transactions compared. It can be seen that Bitcoin Cash got off to a better start than SegWit. However, this is explained by the sluggish initial adoption of the SegWit update for Bitcoin transactions. Over the course of 2018, however, SegWit managed to clearly distance itself with a steady increase in transactions. It was not until August and September that Bitcoin Cash transaction volumes formally exploded and in one jump managed to catch up with the number of SegWit transactions. In total, almost 22.1 million SegWit transactions have been executed since the hard fork, compared to 18.9 million Bitcoin cash transactions.
In the overall view, it can therefore be said that both payment methods are popular. The share of SegWit transactions at Bitcoin and thus also the average daily transaction volume is constantly increasing. Bitcoin Cash, on the other hand, is characterised by a strong volatility in daily use and therefore does not show a clear growth curve. In addition, the stress test distorts the number of transactions carried out in favour of Bitcoin Cash. More than a year after the chain split, the SegWit camp is currently a (small) winner.