2023F MIS 716-A Mid-Term Examination Question 2 On August 1, 2017, a contentious fork occurred which split Bitcoin into two competing chains: Bitcoin and Bitcoin Cash. The main point of contention was the proposal by miners to make Bitcoin more scalable by increasing the size of each block from 1 megabyte to 8 megabytes. Bitcoin developers argued against such a change on the grounds that it would decrease decentralization and compromise the system by crowding out smaller miners. The Bitcoin Cash proponents argued the increase in block size was needed to make Bitcoin more competitive by making transactions both lower in cost and faster to confirm. WJOY ! anivloe Itnow meldoig 6 ed Spir tuo Bitcoin Blockchain, 1 MByte m m Bitcoin Cash Blockchain, 8 MByte Source: Changelly Since the date of the fork, despite the scalability advantage of Bitcoin Cash and although it has not suffered a 51% double-spend attack, Bitcoin has outperformed Bitcoin Cash on both price per coin and user adoption. On the date of the Fork, the price of one Bitcoin was $2,718 versus the current price of $28,500 (i.e., 10x more), while the price of one Bitcoin Cash has remained relatively flat (i.e., $240 at the time of the split versus the current price of $229.) Similarly, Bitcoin is currently processing approximately 288,000 transactions per day, whereas Bitcoin Cash is processing less than 5% of that at approximately 14,000. Explain some of the factors that you think account for Bitcoin's outperformance