Join 76,098 users and earn money for participation

Bitcoin Cash: An Asset & Currency Class

4 78 boost
Avatar for annayks
Written by   121
4 weeks ago

A freefall.

This is what the markets are looking today, not just the crypto, but everything. Prices of assets are rapidly in decline, and a new type of manipulation is taking place. FUD is a common methodology used not just in crypto as we think.

Some economies are not this strong, and they will be paying the price as usualy happens. The top economies will survive this blow but the foundations are again trembling from the new blow.

What is there as a counter measure for the reduction of financial pain to the masses? Nothing. The govenment paychecks are money that will be asked back through taxation.

Crypto Superiority Over Fiat

I have stated my belief on Covid previously and how the spread of a virus became an opportunity for many. It was the same for the crypto geeks that expected a black swan to express the superiority of crypto over fiat.

Those of us in crypto for longer than a year, probably understand this already. There was no need for us to have a violent macroeconomic event that would shake the very foundations of the fiat economies. But, it came as a surprise to some that crypto was immediately bounced after the initial crash.

There is a problem here that very few are discussing. We explain that we have cryptocurrencies offering fixed supply, but we have so far so many of them that we count and many more keep appearing every day. We have thousands of cryptocurrencies.

This is where Bitcoin (BTC) bases the accussations that since everyone can create a replication of BTC, there is no need for anything else. There is need to make a point and this point is strong. Bitcoin as created by Satoshi Nakamoto, wasn't only looking to become a digital currency.

Satoshi created a strong currency, one that has diminishing inflation with a fixed total supply and a halving event that is violently cutting in half new supply every four years.

From the point of view of the maximalists, I understand the part that there can't be thousands of cryptocurrencies competing for a fixed supply, since this alone makes fixed supply inadequate to combat inflation. When crypto is viewed as a whole, then supply is infinite and inflation is massive since all new cryptocurrencies are bringing billions if not trillions of new tokens that will compete with the previous we had for a better market position.

Fixed supply means that people hoard. Probably this was the reason for the early Bitcoiners realizing they shouldn't just spend their BTC, but created the HODL movement.

I am supporting the currency features and the use of cryptocurrencies for transcations. I have explained before that since there will be a moment we can use our cryptocurrencies everywhere, then there will be no need for fiat.

I've been countered by Bitcoin maximalists thinking they only have to keep accumulating and never spend. A big mistake that will keep price lower than BTC would have gone with a network that moved as Bitcoin Cash did. It is also the reason I support Bitcoin Cash and moved out of BTC completely.

I support increasing our investment in BCH and hold BCH but at the same time using Bitcoin Cash for any payment instead of using fiat. Maybe some don't think that spending is part of human nature. We have to consume, and use cash to buy the items we need or want. It doesn't mean because you invested in Bitcoin you can't also use it. Well with BTC you can't so it is becoming worthless.

Buying a pizza in 2010 meant that Bitcoin worked. What about the rest of the community back then. Weren't they having $10 in fiat to buy Bitcoin, or didn't they need to buy a pizza with the same $10? The fact is that you will need to consume, and consumption increases economic progress, it is money that is the means to transact and buy the items we need. You work to make more, and hoard that. You will have to eat, buy a house or a car and pay for your family expenses you know. But with Bitcoin as a currency of choice, probably you will find it expensive and you will have to move to another one. Bitcoin Cash.

So in the end it is either you just invest in Bitcoin (BTC) or you move on to a new currency and use it as such (Bitcoin Cash). The fact that the fixed supply will always be there, means that the one that will be used will come on top.

I don't see any reason to invest in something that everyone just holds and waits to reach to higher price and perhaps sell later for huge profit. Without having the payment option then Bitcoin becomes useless. The gold option is also useless, since becoming digital gold also doens't make sense and throughout the years it will also become less meaningful.

Any asset will need to have more than just the price action, otherwise it just becomes an unproductive pump & dump or a pyramid.

Having money in the "bank" (personal wallet with a private key) that appreciates instead of losing value and the ability to use them any time we want with a very low fee, is what I see as an advantage of Bitcoin Cash.

The Lightning Network is not Bitcoin. We can't say that SmartBCH is Bitcoin Cash, it may use Bitcoin Cash but it is in tokenization format. It represents the asset but doesn't contain it. And moreover, LN creates the requirement of trust, gives power to intermediaries and nobody willingly is going to use El Salvador methods. Strike is the developer of Chivo, it is the same centralized wallet but there is not much information around.

It is difficult to understand the confusion of the hodlers that don't see forward to the future and how much Bitcoin Cash was right with its approach.

If a stock had the ability to change hands instantly for low fees, that would make it money. The liquidation ability, the fast movement and free from fees is what gives more power to a currency. BTC is like a stock today, unable to move fast, too expensive to use its network. But a stock for what exactly? It doesn't represent anything.

Bitcoin Cash represents a currency that can reach dominant levels in finance. Its network is found to be reliable and fast enough for Decentralized Finance applications to grow and with SmartBCH the sidechain that changes the game, it becomes a ground for future developments.

9
$ 5.99
$ 4.92 from @TheRandomRewarder
$ 1.00 from @ErdoganTalk
$ 0.05 from @Olasquare
+ 1
Avatar for annayks
Written by   121
4 weeks ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

Bitcoin cash is money

$ 0.00
4 weeks ago

Good read. Yeah, BCH is way better.. though it went down this past 24 hours for about 10%. I'm not yet discouraged.

$ 0.00
4 weeks ago

Buying a piza with Bitcoin in 2010 was the beginning of it all. But those BTC today would make that person millionaires. Only 11 years later. Understanding the philosophy of a HOLDER is difficult. Until when will you be holding your BTC? Until the end of time? How will you know that this is the all-time high? It is complex. I loved reading you, as always.

$ 0.00
4 weeks ago