Reports are circulating in the financial and crypto media about a recent research note by BoA (Bank of America) named "Bitcoin’s Dirty Little Secrets".
"Bitcoin has also become correlated to risk assets, it is not tied to inflation, and remains exceptionally volatile, making it impractical as a store of wealth or payments mechanism,"
- Bank of America
I tried to read this report from its source but it wasn't linked in any of the websites I visited. The links to the sources I quote and examine are at the bottom of the post. In fact, from what I have read so far, this is just what every one of us already knows. Except perhaps from the new investors in the field and the institutions.
Bitcoin BTC has no purpose at all. It is just there for us to speculate, trade it, trade the programmed cycles, buy when low and sell when its price is higher, make charts with hodl waves, and find some logarithm that will make sense with this asset. Besides the millions of traders, the fact is that Bitcoin has no purpose. Not in the real world and not on the web.
"No Good Reason To Own BTC Unless You See Prices Going Up "
- Bank of America
The fees have already proven that Bitcoin is unable to handle increased usage of its network. It has limitations and it is unable to scale further. It scales instead in the term of increased fees. After it passed a small limit in the number of transactions it can manage, it then becomes a competition between transaction fees, as the highest only will be selected by miners to be recorded in the next block.
The system should have been first-in-first-out to promote a healthy payment system that is just and fair, but instead, it became a system of giving more power (speed of transactions in this case) to the one that pays the most.
Humans though, are financially rational beings and will not pay high fees if there are alternatives around. In fact, the bank system was already a better alternative and most of the world would not trade the ease, speed, and low cost of transactions just for decentralization. The world to move from the failing banking system and fiat money needs to find an easy, fast, free to use, and secure environment that would also be decentralized.
In the transactions sector banks today have to offer:
Fast transactions
Low fees (in most cases)
Ease of transactions (e-banking, POS networks, open banking, and more)
Centralized and controlled accounts with limitations and countless reasons for rejection of transacting
Bitcoin BTC isn't better for the overwhelming majority of consumers:
Slow transactions
High fees
Limited Network of acceptance by businesses
Decentralization
The only positive is decentralization but this is the last part for most consumers, not the first when choosing a payment method. Still, it holds importance because with decentralization each one of us becomes a bank on our own. However, each of us would prefer not to pay $10 fees for a $20 transaction.
Since the Bitcoin devs linked with Blockstream didn't understand that, it wasn't going to be long before a better Bitcoin would appeared.
Bitcoin Cash is the answer:
Virtually instant transactions
Low fees
Expanding network of merchants (100,000+)
Decentralization
I remember the scaling debate (which wasn't a debate at all) and how Blockstream trashed the higher block size proposal, which was what the Bitcoin community was expecting and wanted for years. Bitcoin was hijacked by Blockstream and transformed into a government-run cryptocurrency that is now tamed, regulated, and changed in ways that third parties are in control. It is being dismantled down to the last piece, until it becomes completely worthless, without a purpose and without anything to do with the original vision.
Bitcoin today has a 0% chance of becoming a system to serve Commerce on the Internet.
Bitcoin Cash is the P2P Electronic Cash System we were hoping for.
Bitcoin Cash is Bitcoin's progress. It is how Bitcoin was supposed to be. For anyone that did research and isn't just holding BTC bags, Bitcoin Cash is the real Bitcoin.
26 million dollars moved with just a tenth of a penny for fees. This is Bitcoin Cash and this transaction is proof of how advanced this network is.
As Bank of America puts it, Bitcoin is not practical. We know that already, it can't scale and many alternatives can do better. A better Bitcoin, one that Bank of America hasn't researched yet, is available for all. I am sure that Bank of America would find Bitcoin Cash useful and practical once this bank or any bank does better research.
Source of this news:
Lead Image from Coingeek.
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