When you are invested quite heavily in Bitcoin cash, it is difficult to not let the downturns in the market affect you. When there is a sharp correction in the price, I recheck a few things to help me not to panic sell at the bottom. The following are the reasons I hold on to Bitcoin cash during a downturn. Please note, that this is what I go through to help myself. You have to do your own research before making decisions with your own money. So, without further ado
Government Currency Printing
According to different sources, the US dollar in circulation increased by 20-35% in 2020 alone. We live in a reality in which a country can print more than a quarter of its currency ever existed in just one year. All of this new currency is going to enter the market and it will bid up the prices of all assets including Bitcoin cash.
Millionaires vs Bitcoin Cash
As of 2020, there were 46.8 million millionaires in the world according to Wikipedia. If Bitcoin cash becomes the most used cryptocurrency or if it becomes a significant part of business and commerce, most of these millionaires are going to want a piece of the pie. With the supply of Bitcoin cash capped at 21 million, imagine the price appreciation Bitcoin cash can achieve if 40+ million millionaires want a piece of this very small pie.
Wide distribution
As bitcoin and bitcoin cash shares the same genesis block, Bitcoin cash is among one of the cryptocurrencies with a wide distribution. From the United States to Venezuela there are people with a vested interest in Bitcoin cash becoming the future of everyday commerce.
The world is moving towards more decentralization
As more and more people realize that the traditional banking system is no longer serving them, they are looking for alternatives. As people come across decentralized systems, they get attracted to them because no one wants their life to be at the mercy of a small group of people. Even in developing countries like India, People are so fast to understand the need to store their wealth in a decentralized system.
Cheap transactions
Transactions fees add a layer of friction to the transaction. Individuals and businesses around the world desire low transaction overhead while buying and selling stuff. Bitcoin cash shines brightly in this regard, Bitcoin cash network offers the most reliable cryptocurrency payments at the lowest price per transaction. Cheap transactions are not only good to have but are necessary for a cryptocurrency to be accepted among the masses, especially in the developing part of the world. Bitcoin cash scores 10/10 when it comes to cheap transactions.
USD value transferred on the network
The value of USD transferred using a cryptocurrency is a critical metric because it means users around the world are trusting that cryptocurrency project to safely transfer value. Bitcoin cash has transferred more value in USD compared to Bitcoin on certain days. As more and more users realize the power of cheap and reliable on-chain transactions of Bitcoin cash. The USD transferred over the Bitcoin Cash network will increase further.
Merchant adoption
When it comes to merchant adoption every other project is blown out of the water by Bitcoin cash. Bitcoin cash is by far the most accepted cryptocurrency in the world in physical retail locations. Other projects need at least a few years of hard work to catch up with where Bitcoin cash in right now.
Adoption in Online payments
According to the CEO of BitPay, a major cryptocurrency payment processor, Bitcoin cash is the second most used cryptocurrency for payments next to Bitcoin on its platform. If this trend continues Bitcoin cash may become merchants' favorite cryptocurrency because they are going to get most of their online sales via Bitcoin cash.
Great projects starting on top of BCH
There are great projects being built on Bitcoin cash every month. The momentum of good projects is increasing rapidly and shows no signs of stopping. A microblogging platform, NFT marketplace, pay to watch video streaming service, NFT based games, Smart contract ecosystem, a Fundraising platform, online poker, a gig marketplace and digital goods marketplace are just a few of these promising projects and more projects are being built on Bitcoin cash as you are reading this.
Smart contracts through SmartBCH
SmartBCH is a side-chain for Bitcoin cash, with SmartBCH any project built on Ethereum can be moved over to Bitcoin cash with little work. SmartBCH project doesn't use a separate token for gas fees instead it uses Bitcoin cash for gas fees. Existing open-source projects on Ethereum can be forked to run on SmartBCH relatively easily. All Defi and NFT activity happening on Ethereum right now can happen on BCH in the future for a fraction of the fees paid on Ethereum.
The Ethereum bridge
Bitcoin cash developers have already started working on an Ethereum-SmartBCH bridge which can be used to transfer already existing tokens on Ethereum to SmartBCH. This project will help skyrocket the available liquidity in SmartBCH because any existing token from Ethereum can be ported over to SmartBCH if they want to take advantage of the exponentially cheaper transactions on SmartBCH/Bitcoin cash.
Bitcoin Cash community is the opposite of maximalism
The Bitcoin cash community is among the best in focussing on bringing more economic freedom to the most number of people. Projects like SmartBCH are an example of how the Bitcoin cash community wants to make technology that liberates humanity accessible to as many people as possible. The community goes above and beyond to help newbies. This welcoming nature of a community is very important for a project to gain adoption. It becomes clear after some time that there is no place for toxicity when you are trying to liberate the world from the shackles of traditional financial institutions.
These are some of the major reasons I hold on to the Bitcoin cash I earn online even during tough times. Some of the above aspects of Bitcoin cash are very hard to replicate which makes me very confident to stay invested.
Photo by Anna Nekrashevich from Pexels
I got this article as a mention to my username but now that I read the article I don't see any @ symbol anywhere, so that means that maybe you wrote something that I wrote in some of my other articles.
So I am asking, if you copy someone else text you get a mention notice, or how the mention notices work, here on read.cash? Not that I would be angry or upset for anyone using what I wrote as long as they add up their own opinion after it or if it is to build on top.