SegWit More Widely Adopted Than Bitcoin Cash, BitMex Research Shows

Francisco Memoria
  • Researchers found that SegWit transaction volume has surpassed that of Bitcoin Cash by the end of October
  • Bitcion Cash's transaction volume spiked after it launched, it failed to keep up with SegWit's steady growth

Research conducted by the investment arm of cryptocurrency exchange BitMex found that while the transaction volumes of Bitcoin Cash (BCH) and  SegWit (Segregated Witness) are “reasonably similar,” Bitcoin Cash is seemingly lagging behind SegWit in the adoption race.

BitMex’s researchers found that SegWit has 20.1 percent more cumulative transaction volume than Bitcoin Cash. The number may be bolstered by SegWit supporters, the company notes, as they could claim Bitcoin Cash had a one-month head start. Adjusting for it, SegWit has 31.5 percent more cumulative transaction volume than BCH.

According to data it collected, Bitcoin Cash saw a significant spike in transaction volumes right after it was launched back in August 2017, while SegWit transaction started growing gradually, but ended up surpassing Bitcoin Cash.

This, researchers noted, may be “related to the investment flows and excitement of the new Bitcoin Cash coin, which may have driven short term adoption.” The turning point was October 31, 2017 – three months after Bitcoin Cash was launched.

Since then, SegWit has managed to stay ahead. Granted, the researchers point out the figures could easily be manipulated. BitMex’s piece reads:

“Although the data suggests that SegWit transaction have been adopted slightly faster than Bitcoin Cash, resulting in more transaction volume, Bitcoin Cash advocates could argue that the Bitcoin Cash token is more about a philosophy of larger capacity in the long term, rather than the speed of the actual increase in transaction volume in the short term. Therefore Bitcoin Cash supporters can still claim that Bitcoin Cash will eventually have more transaction volume than Bitcoin, once adoption of the coin increases.”

BitMex Research

BitMex Research further pointed out that SegWit adoption has been steadily growing since August 2017 and is “perhaps increasing in steps as large corporate entities switch to SegWit.” Last month, popular cryptocurrency exchanges like Coinbase and Bitfinex adopted the technology, improving the network’s efficiency.

Researchers further note that SegWit has begun to meaningfully impact bitcoin’s network, as it is “potentially reducing fees and benefiting even users who choose not to upgrade to the new transaction format.” Not only that, but SegWit also allows for second-layer technologies, such as the Lightning Network, which recently became a reality.

BitMex’s report shows that, since bitcoin Cash was launched, 6.1 million SegWit transactions occurred, against 4.88 million Bitcoin Cash transactions.  Nevertheless, it concludes that adoption of both SegWit and Bitcoin Cash has been “reasonably slow.”

Weiss Cryptocurrency Ratings Gives Bitcoin an A-Rating

Francisco Memoria

Weiss Cryptocurrency Ratings, a division of the independent financial rating agency Weiss Ratings, has given Bitcoin an A-rating, pointing out its “excellent” adoption and potential rewards, as well as its “good” technology.

According to Weiss Cryptocurrency Ratings’ website, the flagship cryptocurrency’s ratings when it comes to technology and adoption is an A, while the rating for its risk/reward potential is a B+. As a result, BTC got an ‘A-‘ from the agency.

This, it’s worth pointing out, is the best rating the agency is currently giving any cryptocurrency. Ethereum’s ether comes in second with a ‘B+’ as while its technology and adoption are extremely positive, its risk/reward grade is a ‘C’. Behind it ate litecoin and XRP, both with a “B-.”

Weiss Cryptocurrency Ratings' rate for top cryptos

Notably, Weiss Ratings gave bitcoin an initial score of ‘C0’ back in January of 2018, when the flagship cryptocurrency was close to its all-time high near $20,000. That year BTC went through an 84% drop to $3,200 in December, before it started to recover.

The cryptocurrency is currently trading at $11,450 after being rejected from the $13,000 mark. Over time bitcoin’s grade went up, and in March of this year it got an “A” grade for technology and adoption, along with XRP and EOS.

Bitcoin’s grade has likely been rising both thanks to its price’s performance, and thanks to various improvements being made on the network. Upgrade likes Segregated Witness (SegWit) and transaction batching helped unclog its blockchain, while the development of its layer-two scaling solution has been advancing at a rapid pace.

All of this has been helping the Bitcoin network’s adoption grow. As covered, using blockchain data to look at transaction inputs and transaction outputs, it’s clear bitcoin usage is close to its all-time high, even though the price is still far from $20,000.

Moreover, Bitcoin’s hashrate hit an all-time high of over 74.5 million terahashes per second earlier this month, at a time in which its decentralization has been standing out as no single mining pool controls over 20% of the network.

Taking all of this into account various cryptocurrency experts have made price predictions so far this year. Where bitcoin’s price is going, however, is anyone’s guess. It’s worth pointing out Weiss Cryptocurrency Ratings, back in January, claimed “bitcoin will again rise up and head for new all-time highs.”