Cryptocurrency users and developers around the world are adopting bitcoin cash at faster rates than bitcoin core, Roger Ver, one of the first investors of bitcoin, told CNBC.
Bitcoin cash, a bitcoin offshoot, split off from bitcoin last year after a small group of developers decided to add upgrades that would improve transaction efficiency. The original Bitcoin is being referred to as Bitcoin core to differentiate it from the other version.
But Ver, who is sometimes called “Bitcoin Jesus” because he was one of the first investors of bitcoin, said the Bitcoin core software is “slow, expensive and unreliable.”
Instead, he recommended bitcoin cash, which he said, is built specifically for transactions.
Ver said new innovation and infrastructures are being built on top of bitcoin cash, “because it actually works.”
“All of these existing businesses are building their new products on top of bitcoin cash, just like myself as the CEO of bitcoin.com,” Ver said on “Fast Money” Tuesday. His website helps investors buy and store bitcoin and other cryptocurrencies.
“The economic path that bitcoin cash is on is the one that lead to bitcoin’s original success,” Ver said. “I’m incredibly bullish on bitcoin cash for the exact same reasons I was bullish on bitcoin back in 2011.”
On Tuesday, bitcoin cash created a new blockchain with 32 MB block size limits. The software update immediately caused bitcoin cash’s value to fall by about 5 percent.
Still, at just above $1,300 Tuesday evening 6 p.m. ET, bitcoin cash is almost double its April 17 level of $763, when BKCM investment firm founder and CEO Brian Kelly predicted the coin would make a comeback later in the year.
Bitcoin cash was also the best performing large-cap cryptocurrency in the last month, beating out other large-cap digital coins like ethereum, ripple and traditional bitcoin.
Ver wasn’t worried about Tuesday’s sudden decline and even predicted bitcoin cash would double by the end of the year.
“That’s what actually gives it it’s underlying value, that you can use it in commerce to pay for things. Whereas, a lot of these other tokens out there just kind of turn into speculative assets that don’t actually have any utility.”
“It’s happening fast and furious around the world,” he said. “Bitcoin cash works as money; bitcoin core, sadly, no longer does.”