The Fundamental Principles Of Bitcoin Cash

Adoption of Bitcoin Cash is increasing not because we force companies and individuals to use Bitcoin Cash with legal pressure, but because we explain Bitcoin Cash to everyone and they decide to adopt it as a cash system different to the dollar.

Dollar's hegemony is on the verge of collapsing and the best alternative today is Bitcoin Cash.

Bitcoin Cash if first of all digital cash, in the terms of the Satoshi whitepaper, a Peer-To-Peer electronic cash system.

Bitcoin followed two different paths years ago, after the blocksize debate divided the Bitcoin community into two (and later more) camps.

One camp is the one that get to keep the Bitcoin name and logo, the Blockstream, or Core camp, and the other part that upgraded the code to help Bitcoin scale is Bitcoin Cash.

This alternative to the dollar today is Bitcoin Cash, and it becomes absolutely necessary for multiple reasons that we can quickly examine:

• Secure

• Trustless

• Permissionless

• Decentralized

• Reliable

• Open Source

• Not censorable

• Borderless

• Adopted

• Fast

• Inexpensive to use

Some of these terms probably puzzle every beginner or even many of the top investors of cryptocurrencies and Bitcoin or Bitcoin Cash.

Let's review them one by one.

Decentralized

Nobody is in control of the network. No single team controls is, no single miner or server exists either. It is also called mining decentralization, with miners scattered all around the world, mining Bitcoin Cash with full nodes, using electricity to include transactions in blocks and quickly process them.

The race to find the next block is based on solving the SHA256 algos the Bitcoin software includes, and increase the difficulty of this cryptographic algo as more miners enter the race.

Security

Bitcoin Cash is secure, the network can't be hacked because it is decentralized. There is no single server for a hacker to exploit, the process of block creation upgrades all the thousands of full nodes operating around the world.

Difficulty of mining adjusts every block to keep miners incentivized, and making BCH mining a profitable venture for the miners.

Bitcoin Cash has never been 51% attacked, and the hashrates that secures the network is higher than most cryptocurrencies based on proof-of-work.

Permissionless

Everyone can start mining Bitcoin Cash, run a node, propose code changes, work as a Bitcoin developer, start a business using Bitcoin Cash, transact with Bitcoin peer-to-peer, without permission by a central authority.

The network rules are on the network itself, and anyone that doesn't follow consensus is excluded from the rewards of mining.

This is similar to Bitcoin's system, and also based on the decentralization factor, but, in BTC, code chances are dictated by only one team of developers, Core (with most devs of Core also working for Blockstream).

This is where Bitcoin Cash shines since there is no single team of developers in charge of developments, but multiple teams working in consensus to adopt and deploy code changes.

Trustless

Trust is not a requirement. Trust is also a disadvantage for the user.

Bitcoin was created to cancel trust since this is a feature of the old approach of the banks and governments when dealing with finance.

Bitcoin eliminates trust, and the open-source nature and transparency of the blockchains present de facto data that can be researched on the blockchain.

Bitcoin Cash is a trustless network, not in the trustworthy sense, but in the sense it negates the need for trust alltogether.

Reliable

An outcome of the trustless attribute of Bitcoin Cash is immediate reliability. Although, reliability in a network is lost, the moment fees of using the network start increasing, and transactions delay more than usual.

The Bitcoin Core network (the one with the Bitcoin orange logo) is not reliable.

Multiple times fees of BTC have reached astronomical values. $ 50 or $ 60 dollar fees not only make a network unreliable, but also make it completely worthless. Most of the time, Bitcoin Core fees will be about one dollar, making incompatible for global payments and unreliable as a network.

Bitcoin Cash fees are constantly low, most times lower than $ 0.01 and while some random spikes exist the average is usually lower than one penny, even lower than $ 0.001 often.

Beyond that, we know our transactions will be processed usually immediately (in one second or less) or depending on our wallet it may demand one confirmation, which is ten minutes. But this is not going to take days or weeks as we sometimes see in the congested BTC network.

Borderless - Not Censorable

No government or third party can stop a Bitcoin Cash transaction on the blockchain. This is the same with Bitcoin Core. It is the advantage of cryptocurrencies (decentralized) against the dollar and the banks.

Bitcoin Cash does not have borders or nations, or governments in the code. This is all irrelevant to the network. There is no backdoor for a government to use and freeze funds. Nothing can be confiscated or censored.

This is the network, but we will find wallets acting against the users of the network. Services that offer to host the keys and use the Bitcoin Cash we send them, on our demand, just as banks. The custodial world in crypto is a trap we should avoid.

These are the exchanges (Binance, Coinbase, etc.), some wallets especially for BTC that are government controlled (Strike, Chivo), and more wallets that don't present to the user the private key or the phrases to the wallets.

Bitcoin Cash Adoption

Map.Bitcoin.com has more than 10,000 merchants listed that accept Bitcoin Cash. Global adoption is probably still low, but imagine the potential once Bitcoin Cash is recognized and adopted by 100,000 merchants or more. This is the beginning of something great.

Speed and Fees Of Transaction

The first time I used Bitcoin, I wanted to transfer from one exchange to another, to trade a few crypto that I felt they were about to explode in price.

I transfered $1000 and received $930 on the other side. I was a beginner and thought this was the exchange asking for fees to process this transaction, and have seen way higher fees when trading stocks, when paying for subscriptions, or account maintenance with banks. This wasn't too much, as some banks charge $1500 yearly for a simple investing account.

But these fees were all blockchain fast speed at that moment. I paid $70 fees for a payment. Immediately erased Bitcoin from payments as this was looking more like a joke to me.

Bitcoin Cash changed everything. I still wonder what are the Core developers thinking. Perhaps were convinced by banks that money needs to be inflating and there was some deal to quit upgrading the network and they would get in to allow them to sell for millions. A trade off, that included betraying everything Bitcoin stood for.

Bitcoin Cash has small fees that are not even considered by any user when we are moving BCH or paying with BCH. Speed is always instant with certain wallets, and with some others it can take 10 minutes maximum for one confirmation.

All the above, is what every cryptocurrency has as fundamentals, but only a handful achieve in total. And except all this, Bitcoin Cash has smartBCH, smart contracts similar to Ethereum, NFTs, DeFi, and a way to trade our Bitcoin Cash in DEXs without having to touch the dangerous cryptocurrency exchanges.

Finally

Bitcoin Cash is easy to use. Anyone with a mobile smart phone can download a wallet (bitcoin.com is one I use) and back up the private key. The keys or the phrase are the password that will open this wallet. It is not the application on the mobile that holds the BCH, you can delete it having the private key, use the private key on another wallet and find and send again your Bitcoin Cash.

There are options to trade Bitcoin Cash without using exchanges too. But if someone has to sell the Bitcoin Cash, and send to a bank, this will need a CEX like Coinbase, and a whole troubling procedure of KYC. Also, any funds in these exchanges are not at our hands, but at the will of the exchange to transfer them.

These exchanges can anytime freeze our funds, and ask for anything they want, usually private information, documents, transactions.

We are in a different process with Bitcoin Cash. And this is not told to Bitcoin beginners by the BTC advertisers. Pompliano will never explain to you, that Bitcoin is a revolution, but only a method to make more dollars.

It is not. It is a move from the dollar to a system that gives all the power to us. The owners of Bitcoin Cash.