5 reasons why BCH has yet to reach its goal of peer-to-peer electronic cash

BCH has been growing quite very slowly over the years and looks pale in comparison to most other cryptocurrencies. Its market price has dropped even more in recent times and is currently sitting in the top 40 on Marketcap.

If you do a little research or Interview people, especially new people to the crypto space, the result is that most people have no idea what BCH is all about, and those who have little knowledge about it think it's just a fork coin like any other forks, e.g BSV, Bitcoin Gold, and other that are called Bitcoinxxxx or whatever.

When you look at it closely, it's clear that regular individuals mistakenly believe that cryptocurrencies are just investments and are drawn in by BTC's past gains, not realizing that it has limited practical use and is heavily supported by institutional capital. Since BCH lacks a structure of institutional support or historical gains, many people are reluctant to use it.

Besides the above, there are more important reasons why BCH is yet to reach its goal of a peer-peer electronic cash. Let's look at some of these reasons.

1 Regulation of decentralized crypto

The only real reason why BCH has not become a mainstream coin is its very nature of decentralization.

If you look at the traditional, "regulated" system, and then look at the crypto space, you'll understand that a lot of centralized entities have gained strength. If you talk to people about Ethereum, they'll tell you that it's decentralized but it's not. For one thing, it has its legal structure and the interests of some participants get prioritized over the others. It's a mess of a system, but it is the traditional way. The same goes for BTC.

Right now there is plenty of regulation, legal protection, and KYC systems around BTC which is what the government and its regulatory agencies like. They want to have control and make BTC just an investment. However, BCH has none of this, and it's unlikely to have anything to do with regulations or KYC in the future

Decentralization is the enemy of the governments and the financial institutions that want to hold a centralized position. If you look at the fiat currencies and central banks, you'll understand that a central establishment has increased its control, and has expanded its holdings on BTC massively.

2 Worldwide adoption

Another big issue for BCH is that it is still a relatively new coin. People are not familiar with it and have not fully digested the idea of decentralized crypto. The few people who are familiar with it, already have chosen to go with BTC or ETH because of the massive gains they have realized so far.

Besides the fact that people aren't familiar with it, the biggest problem is that BCH is unable to reach global adoption which is the main driver for it to become a mainstream cryptocurrency.

Because people and companies have already made huge investments in BTC, and Ethereum, the newly launched BCH coin won't have that same early market traction and early adopters, so it will take time before people will come around.

BTC can continue at its current pace of adoption, that is if the miners don't freeze it at will. However, if people realized that BTC has no utility whatsoever for anything other than investment, they might move to other alternatives that have utility.

As people start realizing this more, then acceptance should grow, and so should BCH’s value!!

3 Fear of accepting it because of taxes

Most people would like to pay lower taxes. Since you're paying income tax on your income, BCH will get taxed just like any fiat currency. The problem with cryptocurrency is that a person who wants to accept it as the main income source will have to be ready to pay higher taxes.

One such tax is the VAT, which is pretty standard in most countries, with a 10% charge on goods bought with cryptocurrency.

By the time BCH becomes a real mainstream currency, someone who wants to pay taxes in cryptocurrency will be facing higher taxes, and the crypto space and the crypto space may shrink, bringing in centralized authorities.

4 Suppression of BCH in social media, and exchange markets

The people who are in the system and want to hold power always try to keep a controlled flow of information and to put out anything that doesn't benefit them or their positions. So, whenever a new cryptocurrency is released, they will do all they can to squash it by suppressing exchanges and social media networks.

The coins they support will be shown in social media, and exchanges because they are a centralized authority.

This is what's happening in the crypto space, exchanges, and the social media network in the crypto space are silencing BCH and trying to push people away from it. This is their way of putting down the growth of a new, more decentralized way of conducting commerce.

5 Brand Recognition

Brand recognition plays a factor, as people want to own the "real deal" when it comes to cryptocurrency. Many cryptocurrency investors and cryptocurrency exchanges are keeping their distance from BCH because they want to keep a good name when it comes to fiat valuation.

Often the Bitcoin Cash brand is not really attractive to new people. Those who know it are mostly old people or people who are OGs in the crypto industry, and there is no brand recognition of Bitcoin Cash at all, therefore, any new people who enter the crypto space will be immediately attracted to other coin offerings, and if they find the exchange they want to use, the first coin they will switch to is most likely BTC or Ethereum.

It's pretty hard to reverse that preference on a market cap and market share basis, as these other coins have larger market caps and better brand recognition in the crypto space, but BCH does have some things going for it.

How to fix the problems for the future

The first important thing is that the community needs to pay attention to promoting the Bitcoin Cash brand, which means setting out and telling people about it.

Creating a strong brand name is important since people want to see and hear their coin's name. If you get a smart marketing team, they can drive up the value of the BCH brand in several ways. Over time, Bitcoin Cash will gain mainstream recognition, and this is critical to success.

The second thing is to build a strong network of support in the media. The media plays a major role in helping cryptocurrency gain widespread recognition, and most people are aware of BCH, but a good part of the population is not. And, of course, it doesn't help that the mainstream media has always been negative towards BCH, which may have kept some people away.

If you have any other suggestions or reasons why BCH is facing a hard time getting to where it should be, feel free to share them in the comments section.