Bitcoin Cash | Some Real World Use Cases

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Introduction

When it comes to the comparison between Bitcoin Cash (BCH) and Bitcoin, I had written an article showing the ease of operation over the BCH network compared to Bitcoin’s. It also shows how the BCH network is mid-way between Bitcoin and Visa processing and how BCH is not too off from Visa’s transactions per second speed even in the current scenario.

 Those interested can read the article here: Bitcoin Cash Challenging Bitcoin | An Interesting Look at the Numbers

 This article will focus on some use cases of where Bitcoin Cash can work and how it can transform the world. Remember, in few of the cases BCH is already working in the real world. For example, there are merchants accepting BCH and it is one of the modes of payment without much of an issue. So, yes, BCH is already interacting with the real world. While many may argue that so does Bitcoin and a bunch of other currencies, the only response is if anything close to mass adoption hits, the Bitcoin network and the other said currencies’ networks may not be able to hold. BCH, on the other hand, has the potential scalability factor in its favor.

 So, let’s hope for a green currency world, only that it is BCH and not the currency of any particular country! 😊

Benefits and Use Cases| Bitcoin Cash

Here are a few of the use cases:

Neutralizing FIAT Currency Disparities

One of the things with the current world order is that some FIAT currencies are costlier while others are cheaper. In other words, you will find one country expensive to live while the other one incredibly cheap. For example, did you know that in few of the South East Asian countries you could buy a good amount of land for $5000? Well, that’s what I mean by affordable and cheap.

But this also creates disparity. The person holding the expensive FIAT currency can tour the cheaper FIAT currency country at will, but vice-versa is difficult. What does that mean? That means, FIAT currencies create disparity among countries. Of course, it is based on many parameters like the balance of trade, gold reserves, etc., but still, loss of equality exists.

Here is where the crypto world can help and BCH, more so. Imagine a world where BCH is accepted as the base currency. The disparity could fizzle out. Initially, the cost of products and services may remain high for one country while low for another, but it would equalize over a period of time. Why? Because, there is equal opportunity for each member to get BCH as much as spend it. Since BCH price is based on availability (not infinite), it will automatically act as a primer putting things together. Thus the disparity would minimize, and new opportunities would emerge. The hope for a borderless world would become true because there is a common currency.

While the thoughts appear Utopian, it is not far from becoming real. The first movers of the crypto world may have an advantage, but the advantage may taper down as most accept. I know that some would hold more BCH than others, but I also know that BCH held in each person’s hand would be enough to take care of their needs and more. Poverty alleviation – this is how it’s done! 😊

Medium of Collateral

Since we’ve already seen the use of BCH as a currency of choice, could it also be collateral? Of course, it can. In my opinion, collateral goes back to the barter system, where we say that I hold something that you own in return for currency (FIAT in the current scenario). If you give me back my currency in a stipulated time, you get back that thing which you own. But if you can’t return, then I take what you own. Correct? Correct, indeed.

Now, we know the loopholes in the ownership and providing collateral drama in the current setting. There are fraudsters who could give out collateral which they do not even own. It has happened and will continue to happen. And we are talking about big banks and corporations which are cheated this way. So, not an ideal world. Not only that, if the other party does not return the money, chances are that the giver of money would have to fight a legal battle to take ownership of the collateral. How is that fair?

But the equation changes once BCH comes to the scene. BCH and Smart Contract does the trick. If BCH is provided as collateral and if the contract conditions are not met, it automatically goes to the wallet of the right party. Matter closed. No lengthy discussions, lawsuits, third-party interference or any kind of drama. Both parties can deal between themselves in with the help of BCH’s blockchain network. So, BCH goes beyond just money, if you notice. 😊

 

Fighting Inflation

Inflation quite simply put is too much money to buy too little. If you really want to know the debilitating effects of inflation take a look at Venezuela or Zimbabwe. You would probably be carrying millions of native currency to buy just one egg or half a dozen of it. That’s what inflation does. Renders an economy impractical to operate.

Now, consider the scenario of BCH being the base currency, what do you think will happen? We will be in an economy that is inflation proof. Why? Because BCH is finite in supply. It cannot be inordinately printed to meet demand. It can only supply a finite amount and that should be take care of inflation. Besides, we already saw the equalizing effect of BCH on countries and economies, so no more different price structures and no more boundaries dictating the economy. In other words, an egg would cost the same in India, Zimbabwe, Venezuela, U.S., or U.K. Wouldn’t that be great? People won’t have to suffer and charity is achieved in the best possible way!! 

Bitcoin Cash | There is A Lot More To It

These are just few examples of how BCH can transform the world and there is more. We will soon be seeing them in the coming days and how BCH could bring equality, ease of transactions, removal of intermediaries, and more. I am inclined to believe that the ideal world would be revolving around what kind of economy the world would become. And a global economy powered by BCH seems closest to ideal!! 😊

Image Courtesy: Mohammed Hassan at Pixabay

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