I want to discuss one important aspect of BCH that I think is not much talk about in the Bitcoin cash community. We have heard several times that BCH is being underrated or undervalued in comparison to other cryptocurrencies especially BTC. We have seen coin fair value charts showing BCH economic performance or value without a clear analysis of what makes up that value or what value actually means. What most crypto users understand about value is the market price of the coin. A highly-priced crypto is therefore the most valuable crypto, hence BCH to them is still a way down the line in value. To this set of people, it will be good to school them about cryptocurrency value and where BCH stands among others.
When we talk about coin value we must try to refer to the original creator of cryptocurrency and what he/them stated in the original BTC whit paper that a cryptocurrency should be. This helps to create a balance and know which of the available cryptocurrencies we have today is doing what it was designed to do. That said, let's see what unique value proposition BCH has above other coins.
Onchain economic activity is one of the factors of determining coin value proposition and BCH has been in a disruptive position recently breaking an all-time transaction record, processing 86213 more transactions than BTC as on the 8th of March 2021.
Pundit ague why a huge onchain economic activities couldn't lead to a corresponding rise in price like BTC? This is what I think, BTC has the investment of big institutions and elites in it. And it's been run similar to gold in which the institution and power that be, set its value. Values are set to create a barrier of entry, making it harder, and more expensive to own for more value increase. In essence, It’s becoming more of a “speculative commodity” used as a store of value and investment vehicle. BTC's value proposition has been watered down to an investment-class asset like gold, real estate, and other collectibles.
BCH is meant to be a digital currency with daily uses similar to fiat. All these transactions you see are usage and exchange from hand to hand or from wallet to wallet which keeps increasing as a digital currency should be (peer to peer). Usage doesn’t necessarily translate into investment values as the case which BTC. More uses trends towards economic efficiency in the long run. There will be speculation in the time being, when the average person discovers the fees for BCH are way cheaper than what they are used to they will switch to BCH. BCH's value proposition centers on the entire need for a legacy financial system, and can also serve as an investment-class asset and a store of value. BCH is not a way to profit out of all proportion, yet there is profit in it. It is the best digital money at the moment. BCH as a currency is meant to facilitate trade, commerce, and sending of your money as you please anytime anywhere. With BCH transaction fees that are nearly invisible, everyone has an opportunity to build new businesses and be in charge.
Being the best money. "It's peer-to-peer electronic cash. You can transact instantly, without asking for permission, nearly for free (under a cent per transaction). It also has the most development decentralization: lots of independent teams working on different nodes. It's also extremely undervalued since not a lot of people know it's the real Bitcoin, and it has a lot of room to grow. So it has everything to be the perfect investment. It's the Bitcoin that continues to work as designed (as opposed to BTC, which stopped being cash and can't be used anymore. Tipping died, Steam stopped accepting it, etc".
BCH is the original BTC technology that started the crypto revolution over a decade ago and it has been proven to be the best crypto technology there is.
BCH is a high scale digital cash you can get out there, and the obvious competitors are not near in rank. This is a hard play, you can talk about Ether, BTC, LTC, DOGE, and now Nano which is said to be feeless and fast in a transaction. But when you talk about users-based BCH stand far ahead of Nano and merchants see that as an advantage using BCH.
Have you heard about crypto Political Science? This sounds strange, but it is also where BCH has always led the pack. There have been more wars here than most other cryptos combined. These wars weren't about positions but about finding the best technical input for BCH. No one would forget soon the war leading to the ABC fork coin. What this portends to is that BCH focuses on building infrastructure and tools for functioning decentralized governance, which would be a major benefit for the world, and attract people.
Pundits asked again if BCH is as good as have been stated why didn't Tesla or Microstrategy buy bitcoin cash?
Good question, and here is what I got. Tesla and Microstrategy wouldn't buy BCH yet because they are investors purely on "price go up" mentality. They are investing in BTC simply because they are after a higher price to take home more gains, and not for the usage of the coin. BCH is not yet on their radar but that won't last. Given the utility and numbers of new projects coming up on the BCH network because it can support it, it won't be long before big institutions like Tesla and Microstrategy come over here.
Bottom line
The value proposition of BCH is far way ahead of what we have been told. Value is not all about price but fundamental of the uses and technology of the system.
"high scale digital cash" Yes Yes Yes!