Bullish news for Bitcoin Cash! In the last few weeks there has been a continuous uptick in the number of transactions occurring on the BCH network. Throughout most of 2020, transactions had remained firmly below 25,000 per day. But since the last week of December, that number has grown more than 10-fold to a peak of 293,000 transactions on February 4th.
This has put Bitcoin Cash in range of BTC’s daily transaction count, which oscillates mostly between 250,000 to 350,000 transactions per day. Now we await the inevitable crossover that completes the flippening of economic activity, which according to the current trajectory is set to take place within a week. Amazingly, despite having similar network usage to BTC on February 4th, the Bitcoin Cash average transaction fee was 6,500 times lower than that of BTC. Bitcoin Cash had an average transaction fee of $0.0025, while BTC was $16.74. This truly underscores the implications of imposing a 1mb block size on BTC and vindicates all those who advocated for big blocks in the past.
In 2017 when BTC reached its limit, we saw a mass exodus of businesses and users who went into competing cryptocurrencies - primarily Ethereum.
Unlike the BTC community, who demonized people using the network and claimed them to be spamming transactions, the Ethereum community was welcoming and did not discriminate against anybody. This ultimately led to an explosion in both the Ethereum price and network usage, where on an average day ETH now processes well over 1 million transactions. Unfortunately in 2021, Ethereum too has reached its design limitations and is now faced with the same high fees that BTC is plagued by. In recent days its average transaction fee skyrocketed past BTC and currently sits at $25.79 USD, making the network completely unusable for all those who rely upon it. The shortcomings of BTC and ETH have only created an opportunity for Bitcoin Cash, which now very much resembles Ethereum back in 2017.
The Bitcoin Cash community is one that is heavily focused on both adoption and usage. Low fees and fast transactions are at the core of the Bitcoin Cash philosophy, which dictates that the user experience comes first. Our protocol developers have spent years optimizing scaling bottlenecks. There is 0 chance of the network buckling under heavy usage like we have seen on other leading cryptos. With current technology, Bitcoin Cash can handle all the transactions of the entire cryptocurrency ecosystem today and the transaction fees would remain below 1 cent. I am predicting that Bitcoin Cash transactions will continue to rise and that it will overtake usage on the Ethereum network by the end of 2021. That’s right, we will overtake ETH and become the dominant economic powerhouse in the cryptocurrency space.
Recent Bitcoin Cash transaction growth can be attributed to continued adoption as an electronic cash system around the globe, as well as innovations like AnyHedge, Noise.Cash and Cash Fusion. Bitcoin Cash has tokens, it has smart contracts, it has DeFi and at its core it is electronic cash. There is nothing unique about these coins and their capabilities. At this early stage in the crypto game what’s important is the user experience and the ability to scale to meet demand. Bitcoin Cash checks all those boxes. It’s inevitable that we’ll see projects from BTC and ETH move over to Bitcoin Cash as they realize it’s unsustainable for them to continue building on a platform plagued by high fees and congestion. We have seen this all before and for those who don’t know; economic activity is a factor which drives the price of an asset.
Many of us have known Bitcoin Cash to be extremely undervalued for quite a long time and it looks like our patience is about to pay off. Unlike BTC whose price can only be sustained by fraudulent Tether printing, the Bitcoin Cash price will soon reflect increased economic activity on its network and things will only snowball from there. Kim DotCom recently made a prediction that price will reach $3,000 this year and I tend to agree with him. Bitcoin Cash is primed and ready to return to its all-time high.
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