Institutional Adoption of Bitcoin Cash

Institutions don’t watch YouTube, don’t troll in Reddit, and don’t follow Twitter influencers for financial advice.

Institutional funds shape their investing strategy according to quantitative analysis, identifying the impact and potential of an asset, or an asset class such as cryptocurrencies.

The focus on cryptocurrencies is on the impact on e-commerce and merchant adoption, remittances, and digital decentralized finance. Bitcoin Cash as a cryptocurrency is now expanding into all these services:

• Offers a state-of-the-art decentralized network with instant transactions

• The development of smartBCH unveiled a modern smart contracts network

The investing side of institutions will not buy a stock or cryptocurrency to use it as a product massively.

2021 was an outstanding year for the adoption increase of Bitcoin Cash. Price action doesn't actually represent the developments and increase in acceptance and doesn't reflect the vast expansion of the BCH network effect either.

Institutional Adoption of Bitcoin Cash in 2021

Bitcoin (BTC) and Ethereum are the most popular cryptocurrencies today. Bitcoin Cash lost market share and dropped below the top-20 in market cap terms, but this doesn't reflect developments or on-chain and side-chains adoption.

Institutions analyze products and assets with a professional approach, rather than adopting the logic of counting Twitter fake polls and comment-bots on social media.

- JPMorgan Chase & Co. (USA): (BCH - BTC - ETH - ETC)

- SBI Holdings (Japan): (BCH- XRP - BTC - ETH - LTC)

- Rakuten (Japan): (BCH - BTC - ETH)

- 21Shares (EU): (BCH - BTC - ETH)

- Interactive Brokers(USA currently): (BCH - BTC - ETH - LTC)

- AMC Theaters - Bitpay: (USA)

- PayPal (USA & UK currently): (BCH - BTC - ETH - LTC)

- Bancolombia (Colombia): (BCH - BTC - ETH - LTC)

-US Bank (US): (BCH - BTC - LTC)

Institutions rally behind Bitcoin Cash, yet the vast allocation of investments in 2020 and 2021 was in BTC and ETH. We expected this since BTC and ETH as assets represent the Wall Street sentiment on cryptocurrencies, the plans on regulations and integration in traditional finance.

BCH is always there, though, as a top selection, and presents a unique case for institutions.

Merchant and E-commerce Adoption

The purpose of Bitcoin Cash is to be used as money. It is a digital form of cash, featuring instant transactions and insignificant fees, lower than one penny.

When paying with cash the transaction takes a few seconds to open the wallet, hand out the bills to the cashier, and receive the change and receipt.

Bitcoin Cash achieves the same speed as cash.

Online purchases are on the rise for more than a decade with e-commerce flourishing. The internet utilized this potential, yet, the legacy financial system, retards commerce with its centralized procedures.

Transacting with the use of e-commerce can often be difficult for various reasons:

• Setting up e-banking that can take weeks to activate

• Having to deal with 2 or 3 passwords to execute one transaction

• Data leaks and insiders

• The requirement of trust.

Paying with Bitcoin Cash is easier and just requires scanning a QR code.

The money has already reached the shop account and your purchase will be on its way ASAP.

Bitcoin Cash doesn't have a long list of rejection codes but instead offers a decentralized, permissionless, tamper-proof and censorship-resistant network.

A big percentage of transactions through banking systems (POS and E-commerce) are rejected for multiple reasons.

It can be manual data-entry errors, lack of oversight, outdated software of the POS, or even worse: network failures. Bank networks or even VISA/Mastercard failures, server errors, and lack of network infrastructure, centralized servers that can't accommodate increased usage.

The centralized banking process simply doesn't work properly. The banking payments network has done its part to stall commerce and entrepreneurship so far, and sometimes it has even created such vast issues to businesses that threatened the viability of their operations.

Bitcoin Cash is up and running 24/7. The network is robust and secure, backed by the second-highest PoW hashrate in the crypto field.

Foreign Remittances ($589 Billion in 2021) & Cross-Border Transactions

This is money sent back to low or middle-income countries by immigrants working away from their country.

The data is not easy to retrieve on the number of remittances with the use of cryptocurrencies, yet the total number in 2021 was close to $600 billion (according to the World Bank).

Central authorities are monitoring the blockchains or crypto exchanges for this type of transactions, however, the volumes in crypto-remittances are not public.

Crypto is often used for this reason. We will often find ex-pats living and working outside their native country and having to deal with various institutions, regulations, and fees, to send money back home.

Bitcoin Cash is also used for remittances since it is the most practical way to send money anywhere at any time.

As acceptance of Bitcoin Cash keeps rising, BCH-related remittances will also grow exponentially. The potential in this market is outstanding.

Anyone that is not even remotely interested in cryptocurrencies, will find Bitcoin Cash the best option to send money back home since it is instant and reduces the cost of cross-border transactions.

Bitcoin Cash (as any other cryptocurrency), is not widely adopted, yet. Sending Bitcoin Cash home is an instant procedure that requires insignificant fees (usually less than $0.01), but the receiver side will find it difficult to spend this BCH to cover direct needs.

Thus, the receiver will have to liquidate crypto into fiat and withdraw funds to a bank account to access them. All the current solutions that don’t involve direct P2P acceptance of crypto (like crypto cards), have fees and may not be instant. This procedure will be eliminated, as cryptocurrency adoption keeps increasing.

As merchant adoption of cryptocurrencies is rising (either P2P or through third-party processors like BitPay and Gocrypto) foreign remittances with the use of cryptocurrency will surge.

In Conclusion: Institutions Don’t Want to Miss the Next Big Thing

The banking system and the traditional finance are in a semi-obsolete mode.

You don’t simply absorb cryptocurrency in the old financial system, but you abolish the old in favor of what is already driving financial progress and economic freedom.

Bitcoin Cash offers the best approach possible, one that enhances and supports commerce. Institutions are not just banks, but understand changes and want to be part of any revolution. The purpose of every fund is not to miss out on the next big thing, and Bitcoin Cash offers this option today.

BCH during 2021 expanded into new and promising territories, with the development of the smartBCH sidechain. Within 2022, smartBCH will be further established as a decentralized, cost-efficient, secure, and robust smart contracts network.

SmartBCH is the gateway to the digital economy for the entire world, unlike Ethereum, that only planned this for an elite.

A sidechain to Bitcoin Cash, with smart-contract (EVM compatible) capabilities, that focuses on the future digital economy.

BCH and smartBCH offer a strong package institutions can’t ignore.

Competition can only resort to propaganda, being unable to catch up with BCH developments.

Cover Photo by, Lucile Noiriel on Unsplash

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