Business 5 July 2018Erik Gibbs
Exorbitant fees for EOS show the beauty of Bitcoin Cash
EOS began as a blockchain alternative, and associated cryptocurrency, that would operate on a smart contract platform to allow for the creation and deployment of decentralized applications (Dapp). The network was designed around a decentralized autonomous framework intended to support applications on an industrial scale, while, at the same time, able to manage millions of transactions per second. EOS was also billed as the one of the first digital currencies that would eliminate transaction fees, but now it looks like that goal has fallen short.
Twitter user CobraBitcoinCash tweeted a couple of days ago, “Incredible. It now costs $30 to register an account on #EOS. That is, $30 to RECEIVE FUNDS into a wallet. It takes $0.003 to SEND funds via Bitcoin Cash #BCH. I can make 10,000 transactions before I’ve paid off my EOS acct creation fee. RAM squatting has ruined the EOS ecosystem.”
Incredible. It now costs $30 to register an account on #EOS. That is, $30 to RECEIVE FUNDS into a wallet. It takes $0.003 to SEND funds via Bitcoin Cash #BCH. I can make 10,000 transactions before I’ve paid off my EOS acct creation fee. RAM squatting has ruined the EOS ecosystem.
— CobraBitcoinCash (@CobraBitcoinCsh) July 3, 2018
RAM squatting is a term related to random-access memory in computers. There is now available an EOS RAM market, which allows users to sell memory space to Dapp developers. Users have to purchase at least four kilobytes (KB) to open an account, which allows them to maintain a portion of the entire network’s processing power to develop their own projects.
Recently, it was determined that 86% of the available RAM was already in use—a surprising figure that there is yet to be any significant amount of projects on the network. The answer comes from RAM squatting, users purchasing RAM as a commodity. It all comes back to supply and demand —less supply means higher prices.
CobraBitcoinCash was just merely touching on the subject when he made his tweet. Since then, prices have increased even more. According to MarketstackD.io, prices reached as much as 820 EOS ($8,160, give or take a few pennies) per 1MB of RAM on Wednesday.
Needless to say, at these prices, the possibility of the EOS network being a viable solution for Dapp creation is reduced to almost nil. If EOS isn’t able to fulfill its initial promise, what value does it have as a cryptocurrency?
Reddit user cryptopriceiq had an epiphany after seeing the sudden increase in prices. He said, “I suddenly realised that RAM is the true EOS token, at least for the next couple of years. If RAM supply is to grow at max 20% per annum as Dan [Larimer] suggested, then RAM supply is extremely limited for the foreseeable future. Remember, what the EOS token [is] for? It’s not a cryptocurrency per se, but a token which you buy so as to CLAIM resources on the EOS network to run Dapps. However, [the] EOS token itself is not the resource. RAM is the resource.”
On the other hand, Bitcoin Cash (BCH) fees have stayed low. As of Wednesday, the average transaction fee, according to BitInfoCharts, was $0.015. This is down from a spike of a still-low of $0.9 reported in January. Either way, the cost of conducting a transaction with BCH is virtually zero and beats out other cryptocurrencies, as well as fiat transfers.
Looking at several charts, BCH has the lowest transaction fee out of all the leading digital currencies. Monero is the highest at $2.58, followed by BTC at $0.85. The fees drop significantly from there, down to Dash’s $0.36 and Ethereum’s $0.347.
BCH is still one of the best usable solutions for everyday cryptocurrency usage. Designed to be used as an actual currency, cryptocurrency’s value is intrinsically tied to its usability, and this is where BCH has the upper hand. It is already accepted by tens of thousands of retailers around the world, and continues to gain favor on a daily basis. This is why even expert financial experts like Dominic Frisby recommend choosing BCH over BTC for investment opportunities.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
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