How likely is BCH to dominate BTC?

Recently I got an answer request on Quora from someone who asked me:

"The BCH crypto is climbing quickly vs. BTC because it's faster for transactions due to the larger crypto block size. Could it become the dominant crypto?"

This post was motivated by that Quora question.

BCH/BTC: Where we are now

Let's start by looking at the charts.

BCH touched a strong support level with a Cypher pattern and started moving up. We can expect further movement upwards. First target in yellow on the chart. TA factors: 1- 4h RSI and Stochastic oversold. 2- MACD bullish div.~Guapeva

If the above chart looks too complicated for you, this BCH/BTC pair 1-year chart may give you a simpler view.

Chillax!

I also don't enjoy charts and I'm not a technical analyst.

But I need to show you the above positions first so that you can make proper sense of the opinions expressed in the rest of this post.

Since this time last year (February 21, 2020) BCH has been losing value against BTC.

From the all-time high (ATH) of 0.04 BTC per 1 BCH to as low as 0.01 BTC per BCH earlier this month.

It is currently trading at 0.0123 BTC per BCH as at the time I write this line (Feb. 21, 2021. 1:14 pm UTC+1).

To put things in perspective, BCH has lost value against BTC by 300% in the past 1 year.

Meaning that people were mostly converting their BCH to BTC over this time period.

But as you can see from the above charts BCH is beginning to make some come back and hopefully, that upward movement against BTC is sustained. The market will decide.

Ok!

So that is the current situation of BTC vs BCH in terms of their value against each other.

Now back to our original question.

Could BCH dominate over BTC?

The shortest answer is yes! it "can".

But will it?

In the rest of this post, I will be sharing with you how I think BCH may become a more valuable chain and potentially appreciate more against BTC.

And what the BCH/BTC relationship could be going forward.

To begin our analysis, we must understand that the cryptocurrency market is mostly speculative.

And fundamentals play a little part in the valuation of most cryptocurrencies.

That is why a "meme" coin such as Doge with nothing other than hype, could be worth over $8 billion.

So for BCH to appreciate significantly against BTC more people should be willing to dispose of their BTC for BCH.

And is only going to happen if they believe that BCH will provide greater returns on their investment.

But does BCH have the potential to produce better returns than BTC?

Yes!

And these are the reasons why I think so:

1. BCH is the "network of the people"

Due to its low transaction fees and fast transaction confirmation time BCH is considered the Bitcoin network of the people.

I am of the opinion that the network that offers greater ease, convenience and security for transacting in crypto will win and BCH stands a better chance against BTC even with its Lightning Network (LN).

As BTC becomes increasingly unusable for most people, they will seek out better alternatives like BCH.

Similar to how those who could no longer afford to use Ethereum have moved to BSC and BSC now has higher daily transaction than Ethereum and give it a hot chase in terms of market capitalization.

Like me, a lot of small and not so rich Ethereum users have dumped their Ethereum for BNB.

And hardcore Ethereum HODlers have moved to use their Ethereum on the BSC chain rather than on Ethereum.

Thus indirectly increasing the value of the BSC and thus BNB as fees are paid in BNB.

This is just an example to show you what will happen when most people realise that BTC is "practically useless" and then decide to turn to BCH.

2. The growth of SLP tokens and transactions

As I already stated, people will need to have good reasons to convert their BTC to BCH before BCH can appreciate against BTC.

One of the reasons this will happen faster than you think is the growth of SLP tokens.

As more SLP tokens gain transaction and the BCH ecosystem grows this will attract some of the "outside money" into BCH.

And of course, the most "outside money" is in BTC. Some HODLers will be selling their "digital gold meme" to invest in some of the thriving SLP tokens.

Which will only help BCH appreciate against BTC.

3. Better investment opportunity

I mentioned above that most people who invest in Bitcoin is a result of hype and the network effect.

When you look at it critically, if you want to make money, you're better off investing in BCH than BTC.

Why?

Because BCH currently trading at a little above $700, (still 81.1% down from its ATH of $3,785 in 2017) has a better chance of producing 10x returns than BTC which currently trading $58,000+.

No matter what lens you use to view the market, BCH will produce a 10,000% return faster than BTC.

And that's even if BTC can still do a 10,000% from current prices.

So, after all said and done, and as the market becomes a little more rational, more people will see that BCH is a better investment opportunity than BTC.

And therefore will more likely be converting their BTC to BCH to enjoy greater returns over the long term.

4. Cash is where the money will go

Recently when I wanted to convert some crypto cash in order to pay some bills I was greeted with the transaction fee of $24.

I was going to send BTC because only BTC was accepted through the channel I wanted to use.

But then, I couldn't continue because I am not willing to pay such a ridiculous fee just to move only $100 to fiat.

Then I started asking around and looking for ways of converting my BTC to BCH and sell BCH instead of transacting with BTC.

I am not the only person who's switching to BCH from BTC.

Many more will soon realise the insanity of BTC fees and will naturally find the nearest alternative which is BCH.

This is not happening right now because everything in crypto is mostly about hype, hype, and more hype.

But eventually, the market will become more rational and will seek out the "best solution" rather than the "best marketing".

I will find for myself a channel for converting BCH to fiat going forward and avoid using BTC and ETH which are the two I have been using all this while.

This will mean that the money I was mostly leaving in BTC all this time will now be diverted to holding and spending in BCH.

Many more people will be doing this going forward. Just as people are moving from Ethereum to BSC now.

And again, this will only contribute to BCH appreciating against BTC as more people seek a "crypto CURRENCY" that works.

Conclusion

As the market matures and people realise that their BTC is but a "digital monument" which they cannot spend freely and easily as they thought, they will seek out a working crypto CURRENCY.

The ability of any crypto to function as a currency is what gives it the greatest appeal.

BCH has all of that, and BTC has lost it a long time ago.

They're trying to bring the currency feature back with Lightning Network, but I and you know that it will be as clunky as Etrhereum Layer solutions.

Or at best a centralized system that is no better than using fiat.

And that's not all.

The BCH ecosystem is growing very fast and more secure as the community keeps building.

Most especially, the growth and unpopularity of SLP tokens and the BCH DeFi subsector will all contribute to the eventual explosion of BCH.

Additionally, BCH has a better chance of producing greater returns on investment (ROI) than BTC.

So that if one is looking to make the most money from their investment in the longterm, you're better off putting that money in BCH rather than keep holding BTC.

If I were you and already invested in BTC, I will naturally and gradually move my BTC gains into BCH.

That's a no-brainer for me.

And I'm sure most people are thinking along this line or will be doing so soon enough.

Over to you. What do you think? Could BCH become the dominant Bitcoin? Share with us in the comments section below.