Real Electronic Cash: Why I choose BCH over BTC

A journey of thousands of miles begins with a single step" -Lao Tzu

Introduction:

Today, I am starting my journey with  @Read.Cash by writing my first article on this great blogging platform. I am Electrical Engineer by profession. My journey with cryptocurrency started in 2016 when my friend encouraged me to invest in bitcoin. At that time I didn't know what is Bitcoin and how it works. So I started learning about blockchain technology and Defi System. The idea of decentralization of currency and finance inspired me to invest in BTC. But in 2017 when RorgerVer and his group highlighted the issue related to BTC block size, I came to know the problems associated with BTC.

Problem with bitcoin Block Size:

Bitcoin transactions don't get confirmed instantly. It needs some time. A new block of transactions is added to the blockchain on average about every 10 minutes. The maximum storage capacity in a BTC block is 1MB. When you consider the

maximum size of one block in BTC = 1 MB
Average transaction size - 370Kb
Average transactions/Block - 2400 to 2700

2700 transactions every 10 minutes means that 4.6 transactions per sec. In comparison to Visa, the Average number of transactions is 1700/sec and a maximum of 24000 transactions can be per second. This means that when a lot of people want to buy and sell using BTC, transactions get stuck in a very long queue during price rallies, waiting to enter the block and get confirmed.

BTC allows you to pay a higher transaction fee if you want to jump the queue up to 37$ per transaction in 2017. It means that if you want to buy a pizza using BTC you would pay 37$ extra along with pizza charges. Expert says in 2023 BTC transactions fee may rise to 100$, it's a ridiculously large fee for smaller transactions. For 100$ you can buy a storage space that can hold entire blockchain data into it. It's clear now that BTC is not future cash. Moreover, if you buy a very small portion of bitcoin you may not be able to keep them in your wallet due to limitations and your coins may stick there with the owner.

Solution of BTC blockSize is BCH:

In 2017, Rogerver and his camp proposed that to make Bitcoin a universal peer-to-peer electronic payment system, we need to increase the block size to 8MB, we will be able to confirm as many as 8 times the number of transactions per second. This will reduce the existing congestion of the network. But BTC supporters opposed this suggestion and as a result of a hard fork in the Bitcoin network, Bitcoin Cash came into existence. Bitcoin Cash increased the block size up to 32Mb to reduce the network congestion and increasing the number of transactions 32 times that of the Bitcoin network. Which makes bitcoin Cash a universal electronic Cash to send and receive payments with a very small transaction fee and fast payment delivery. The number of transactions on Bitcoin Cash’s blockchain during a stress test in Sep 2018 surged to 25,000 per block.

BCH Future:

I believe this recent surge can be attributed to smaller retail investors finding reliable options outside of the BTC/ETH bubble. It’s becoming harder to get a noteworthy slice of Bitcoin as the price continues to slowly grow which is causing some to look elsewhere.

Cryptocurrency has a lot of projects that are growing right now, but BCH has remained at a consistently high value. As prices and fees add up, it becomes tougher to invest in the heavy hitters. That’s why I think something like Bitcoin Cash can be a good choice and will continue to grow.

Furthermore, BCH is a pragmatic token that gives it additional value.

It allows growth as it serves a purpose rather than just existing a store of value. In this case, the purpose is its ability to be spent on real-world products. Adoption is a big part of BCH’s value since it provides a more true to vision digital cash option.