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The car manufacturer later removes a notice not to give Bitcoin Cash or Bitcoin SV as payment for deliveries, but the harm has already been done for BCH/BTC.
Bitcoin Cash (BCH), a controversial Bitcoin (BTC) spin-off, has reached fresh all-time lows against its parent since Tesla openly denied using it for payments.
Elon Musk, CEO and “Technoking,” announced in a series of tweets on March 24 that U.S. consumers could now purchase a Tesla using BTC — but his company rejected “fork devices” such as BCH.
Tesla: Don’t send us anything but BTC
Bitcoin Cash deviated from the Bitcoin blockchain in August 2017 and has since been a contentious force within the cryptocurrency community.
Proponents argue that BCH is superior to Bitcoin because its costs are much smaller, and transfers take less time to clear and consume less resources.
As BCH/BTC continues to hit new lows, the narrative has taken different forms over the years, with activism ranging from passive to belligerent. For the first time, BCH holders got less than 1% of a Bitcoin — 0.089 BTC — per 1 BCH on Wednesday.
Tesla’s Bitcoin acceptance move appeared to drive the downturn. Support documentation originally singled out BCH and fellow Bitcoin Cash hard fork Bitcoin SV (BSV) as being unsuitable for payment.
“You may not make purchases with us using any other digital asset, including Bitcoin fork products, such as Bitcoin Cash and Bitcoin SV,” the company stated.
“Our Bitcoin digital wallet is not configured to detect or receive digital assets other than Bitcoin.”
Dotcom rubbishes Lightning Network
The phrasing jarred with BCH holders, who frequently tout the altcoin as being the “real” Bitcoin. Among them was entrepreneur Kim Dotcom, who took Musk to task about the snub.
“Try and buy a Soda with Bitcoin,” he tweeted indignantly.
Tesla had already removed the content, simply warning buyers not to send any other cryptocurrency to a BTC address other than Bitcoin itself. This was not enough to extinguish the heated debate, however, as rival supporters sparred over what is a perennial source of anguish.
“Satoshi didn’t envision Bitcoin as a new class of bank controlled by the same corrupt power structures as our current financial system,” Dotcom continued.
“Custodial solutions like Lightning are not changing our broken system. Users must control the keys to their digital money, not third parties.”
Musk replied with typical casualness, claiming Dotcom had a “good argument” about transaction fees and noting a plan to allow Dogecoin (DOGE).
Bitcoiners contend that, considering its lower fees, BCH is almost useless in comparison to Bitcoin. This is attributed to the above overcoming several blockchain checks while retaining an unblemished 12-year Proof-of-Work history.
BCH, on the other hand, has yet to do so, and with its hash rate slowly declining in comparison to BTC, its low consumption costs are gradually coming at the detriment of both protection and utility as a store of value.
Although Dotcom criticises “Layer 2” solutions like the Lightning Network, they are intended to transfer the bulk of BTC transactions off-chain, reducing fees and transaction times to near zero.
Meanwhile, BCH is facing other issues, with its falling price dropping it out of the top ten cryptocurrencies by market cap this year.