Bitcoin Cash to increase supply to 22 million
The inflationary move is intended to help BCH compete with Bitcoin Core, providing higher rewards for miners going into the next halving.
Bitcoin Cash, which controversially forked from the Bitcoin Core blockchain in 2017, has made the decision to increase its supply by 1 million, meaning that a total of 22 million BCH will ultimately be created.
The move comes after industry specialists warned that Bitcoin’s fixed supply was proving a barrier to regulatory approval. Most cryptocurrencies are deflationary, while fiat money is infinitely inflationary. This poses problems for products and policymakers seeking to link or combine the systems.
Terry Duffy, CEO and Chair of CME Group – which recently discontinued its BTC futures – commented: ‘The governments can’t run unless they can run on a deficit. I am trying to figure out why they would say, “Sounds good to me, because I want to be responsible and run everything on even-for-even basis. I can’t borrow against anything.”’ Duffy did not rule out a Dogecoin ETF, since Dogecoin is an inflationary currency.
Bitcoin Cash’s move to raise supply promises to make it more competitive compared to legacy Bitcoin Core, making it more likely to replace BTC as the #1 digital asset. It will also increase mining rewards going forwards. The Bank of International Settlements – the central bank for the world’s central banks – has been highly skeptical of bitcoin. The BIS has repeatedly warned about the consequences of Bitcoin’s halving schedule, suggesting that, unlike fiat money, the system is unsustainable.
Increasing supply also makes Bitcoin Cash more competitive against Bitcoin Cash Satoshi Vision (BSV), which itself is a fork of Bitcoin Cash. The two currencies and teams parted ways at the end of 2018, and the ‘hash wars’ that followed have been blamed by the community for bitcoin’s drop in price from $6,000 to $3,100.
However, Crypto Inferno has revealed that BSV is allegedly considering a supply increase to 23 million in response, allowing it to out-compete BCH.