There are no fundamental reasons for the growth of bitcoin: expert comments
On April 30, bitcoin rose to $ 9,400 and became the leading asset in terms of profitability in 2020. Now the first cryptocurrency is trading at around $ 9,200. What is the reason for the growth of bitcoin and for how long, ForkLog learned from experts.
There is no single reason for the growth of the BTC rate. But in general, the news flow and what is happening on global capital markets contribute to the increase in the value of the flagship cryptocurrency, and here's why.
Firstly, BTC halving is approaching, that is, the reward for mining each block will decrease. The daily production of BTC will also be reduced, which may contribute to an increase in the price of digital money.
Secondly, the US Federal Reserve, whose meeting ended the day before, noted the facts of a serious economic contraction and warned of its readiness to introduce new measures of economic support. Most likely, we are talking about new packages of supporting measures, that is, the Fed will again “turn on the printing press”. The possibility of increasing the money supply in the United States, in addition to the existing parameters, could stimulate investors to seek profitability in another place, which became the cryptocurrency market.
With all this, it’s absolutely impossible to say that the cryptocurrency sector is becoming a “safe haven” for fiat money - the last four months have perfectly demonstrated this.
**Max Krupyshev, CEO of CryptoProcessing:**
We approach the halving, there was a push from lovers of quick profit. Other investors who emerged from falling assets in March are prepared to take risks and invest in alternative finance. Bitcoin gave a signal, they supported.
**Gregory Klumov, founder of the stable cryptocurrency platform Stasis.net:**
The failure in mid-March was caused by the elimination of early halving positioning. Then the coronavirus and the short-term liquidity shortage took the investors by surprise. Since then, liquidity has been sealed up to $ 12 trillion worldwide. All boats rise to the places where they were supposed to stand a month ago.
**Anatoly Knyazev, Executive Director of EXANTE:**
The price of bitcoin is growing amid expectations of a halving and general positive in the stock market. Investors are actively entering the market: the total trading volume has increased significantly, in particular, for BTC it reached $ 70 billion, which is comparable to the volumes on March 12-13, when the price of bitcoin fell almost twice in 12 hours. However, do not relax: on the eve of halving, the wildest price movements are possible.
**Sergey Troshin, CEO of Six Nines data center:**
Bitcoin and the entire cryptocurrency market after it began to grow at Halving-FOMO. Less than two weeks are left before halving the bitcoin network. Some relief in the global financial market has put halving back in the spotlight of investors.
The majority of market participants believe that halving carries an extremely positive message for the first cryptocurrency. However, there are those who think that halving is already included in the price of bitcoin, and the main purchases occurred immediately after the market collapse in mid-March.
CoinMarketCap data showed that over the past 24 hours the Bitcoin network recorded a historical maximum trading volume of $ 69.5 billion. For comparison, in 2017, at a price of about $ 20K, trading volumes barely exceeded $ 20 billion. Such a surge in volumes when the price increases further strengthens growth .
Nevertheless, it is already evident that the first impressive impulse of purchases is running out. There is nothing surprising here, since sharp price spikes cannot do without temporary corrections. The ability of Bitcoin to exceed the most important psychological round level of $ 10 thousand will largely determine the future dynamics.
How to use options to motivate cryptocurrency developers? Take BCH as an example
Encouraging the development of encrypted digital currencies has always been a difficult problem, and now almost all coins and chains are facing the status quo of developers being ineffective.
**BCH** hopes to **solve** this problem early this year, and wants to share a portion of the coins from the mining rewards to developers. At present, it seems that there is no following, everyone is in a deadlock. I think that as the price of currency drops further, the issue of development rewards will only get worse.
This article attempts to give a solution that is right for the current plunge. We use options to motivate developers. **Take BCH as an example.**
The current price of BCH is 180 $ / BCH. The community set up a fundraising organization, initiated a fundraising, and aimed to raise 10,000 BCH.
Set an option for the fundraising donation. After one year or more, the designated developer is allowed to exercise at the price of 1000 $ / BCH.
Specify a number of developers in the form of a whitelist to subscribe for the option. Confirm the subscription share and exercise price by contract. The contract also needs to specify at least some tasks of the developer, such as completing the development of the roadmap and the like.
If the final option is exercised by the developer, the entire fundraising will receive $ 10 million in revenue, that is, the developer will buy $ 10,000 / BCH for this $ 10,000 BCH. The $ 10 million received will be returned to donors 100% of the original donation.
If the final option is not exercised, that is, at the expiration, the price of BCH does not exceed 1000 $ / BCH. The fundraising agency will return all the donated BCH to the source address. That's it, that's it. Everything else is detail. **What good is this?**
The first is the low cost of fundraising. Now 10,000 BCH, only 1.8 million US dollars, and still donate by currency. And if the final option is exercised, the donor also receives an additional 820 $ / BCH. This is equivalent to selling a bear option at 1000 $ / BCH when the donor makes a donation. If it expires, it will have a profit of 820 $ / BCH. If it is not exercised, it will cost 0 to hold the option. Option, the principal can be returned.
**In this way, fundraising will be much smaller.**
The second is that funds do not need to be managed after fundraising, at least the management cost is quite low.
Even the incentive effect can be monitored without supervision. But the premise that is effective is that we assume that the developer's code work has driven the price.
If the developer works very hard, when the exercise expires, the market price of BCH reaches 2000 $ / BCH, then when he exercises, he can get a profit of 1000 $ / BCH. In order to obtain greater profits, developers have the incentive to complete more features to meet market demand and push up market prices.
If the market price of BCH is less than 1000 $ / BCH when the option expires, the developer can give up the exercise. The fund-raising organization can return all the collected BCH to the source address of the donation. This is a win-win situation, and even the original donors can make a profit.
The third is to provide a market buy signal. If the donation is established, it will give the market a group of enthusiasts of BCH, there is a signal to see up to 1000 $. This will naturally form a buy signal for other buyers. **So what's wrong with this?**
This is a delayed incentive. If developers want to spend money now, such as renting an office or buying pizza, where does their money come from?
Delayed incentives will not motivate developers who have no money now, but only those developers who have money to claim options. This approach determines that developers are more solo. A great developer may claim an option on his own, with zero income to develop before expiry, but he is more likely to have no funds to hire other developers to help him work together. Therefore, it may need to be supplemented by other funding schemes.
There is another drawback. No one knows whether the market price is due to the features completed by developers. That is, it may cause incentive dislocation.
But all in all, this is a good solution. Especially under the premise that the community does not have a good plan, it is worth trying. The specific implementation method can be done as follows:
People with credibility in the community stood up and publicly issued a statement to set up a fund-raising institution and release details. In addition, it is necessary to draw on a legal and compliant third-party impartial agency to conduct contract justice externally to improve credibility.
Then go to fundraising, and make public donations.
Then talk to the developer, hoping that they will claim the option.
3 Thinking Differences to Help You Better Understand Blockchain Investment
Although investment in the traditional financial market is called investment, and investment in the blockchain field is also called investment, and with the development and growth of the blockchain industry, many traditional financial institutions have slowly begun to enter the blockchain industry. There are more and more financial products in the chain industry, more and more formal, and there is a tendency to move closer to traditional finance. However, at this stage, the differences between the two are still very large, and they can even be considered to belong to two completely different "worlds".
If you don't realize the difference, and apply the investment thinking of traditional financial markets blindly, you may suffer great losses.
Because I personally have some investments in both markets, I have a deeper understanding of them, so I can more clearly feel the difference between the two. I personally think that traditional financial investment and blockchain investment have three levels of thinking. An important difference.
**I. Extreme thinking**
What is extreme thinking?
To invest in the blockchain industry, you must first assume that the most extreme situation in the market will occur, and be prepared for the worst thinking at any time.
In fact, it is more accurate to say that this is not a hypothesis. In the field of blockchain, extreme situations are bound to happen.
The extreme thinking here is a bit similar to the "black swan" thinking in traditional finance, but the probability of a black swan event is very low, and it will happen only after a long time. However, the frequency of "black swan" events in the digital currency field is very high. The black swan event was originally used to refer to small-probability events. If the probability of occurrence is high, then the "black swan" is not very accurate, so A more direct term is "extreme thinking."
For example, in the first two days, Bitcoin has fallen by as much as 40% within 24 hours, and the market value of the entire digital currency market has increased by at least 50%. This is unimaginable in the traditional capital market. The overall market value of Japan has evaporated by more than 50%. If this is the case, then subsequent financial services such as collateral and pledge based on stock prices will encounter great problems, and the entire financial market may collapse.
Although for the digital currency market, there are not many cases of a single-day drop of 40%, but a single-day drop of 20% and a single-day drop of 10% often occur, and it needs to be treated as a regular event. And 40% is only for Bitcoin. For a single company, a single day drop of more than 60% -70% will also happen.
If it is just barely acceptable to fall sharply, the most unacceptable is zero. Although the stock market also often plummets, it is very rare that it is zero. There are thousands of A-share listed companies, and few of them have finally delisted. The proportion is very low. The blockchain digital currency industry is different. In just a few years, there were thousands of tokens, and these tokens have not undergone rigorous review. Most of them are air coins. 90% of these tokens are finally going to return. Zero.
Because of these differences, investing in the digital currency market **should take extreme thinking as the starting point of the entire investment system** . You should keep thinking: what extreme situations can happen in the entire market? What should I do if an extreme situation occurs? What happens to the company I invest in? If these extremes happen, can I take them?
Before investing, you should use these possible extreme conditions for stress testing. You must first assume that the broad market is down by 50% a day. How can your investment sustain this time? Obviously, if you want to be able to hold it, then you can not add any leverage; you have to assume that the entire market will continue to slump for 3-4 years, how can you hold it? If you want to handle this situation, then your funds must be long-term, cost-free, and with a little interest, it is likely to drag you down, and you need to be supplemented by a steady flow of off-site cash flow; you have to assume that your This token will be returned to zero for various reasons. Will zeroing be a fatal blow to your investment? If you want to avoid this risk of zeroing, then you must be more careful in selecting the investment target, and at the same time spread your investment more dispersed.
**Second, periodic thinking**
Another difference in thinking is:
To invest in the blockchain space, you need to have a cyclical mindset.
The periodicity of the digital currency market is particularly obvious, and according to historical experience, it is a cycle every 4 years.
There is also a certain periodicity in the traditional stock market. For example, the financial crisis will break out after a period of time, but it is not absolute. Sometimes the financial crisis occurs once every 5-7 years, sometimes it occurs only once every 10 years. The duration of each time It's not the same, sometimes it ends in a few months, and sometimes it lasts for years or even ten years.
This is very interesting because you know the time of the cycle and you know the general direction of the fluctuations. What's the rarest thing about investing? Information is the most rare and certainty is the rarest. If you accept the term of 4 years cycle, then many of your investment behaviors can be planned in this way, and many investment plans can be adjusted accordingly. If this law holds, this is a very favorable condition for digital currency investment compared to stock investment.
Moreover, the company is behind the stock. Although the market is not good, some companies can grow against the trend and the stock price doubles in the financial crisis. Although the company's stock price has not doubled, its profits are not affected and the dividends continue to be distributed every year. The dividends and fundamentals of these companies were not affected by the financial crisis. At present, digital currencies do not exhibit such characteristics. As long as bitcoin falls, basically all digital currencies fall with bitcoin, it is difficult to maintain their independence, and digital currencies do not have much landing Business, with energy and no dividends, it is impossible to talk about contrarian growth.
So, **for stocks, we talk more about long-term investment; but for digital currencies, is it better to invest in the long-term? Or is it better to adapt to the cycle?** This is also a question that every investor needs to think about.
**Third, quantitative thinking**
Traditional stock investment can be quantified in many ways. There are many data in stock investment, including business data, financial data, market public opinion data, various announcements, etc. These are the basis on which stock investment can be quantified. More critically, stocks can be valued. The valuation theory of stocks is based on a discounted cash flow model. This valuation has theoretical support and is widely accepted by the market. On the basis, the entire capital market was derived, from valuation to financing, from financing to listing, and subsequent follow-up issuance and repurchase formed a complete set of logic, and also produced the most widely accepted investment theory: value investment . However, for digital currency, it has no cash flow. No cash flow means that you cannot accurately value it. Failure to value it means that many theories in traditional finance cannot be applied.
If valuation is used as the "anchor" of investment, then digital currency does not have such an "anchor". We need to find other "anchors" to replace it. Otherwise, our investment will have no foundation and will fluctuate with market fluctuations. Constantly in panic and greed.
Of course, the absence of traditional cash flow does not mean that the market value of its entire digital currency is a bubble. Sooner or later, the digital currency market will form its unique valuation system, but this system has not yet been fully established. In the future, this system will be based on other indicators, such as new account addresses and the number of active users. At that time, the digital currency market can still find its "value anchor".
So, at this point in time, how do we make a good investment in blockchain? I think we can learn from the investment methods of VC and PE. When VCs and PEs invested, they were investing in startups or early stages of the company. At that time, the company had no cash flow and could not be valued. Therefore, VCs created a "track theory": To the best athletes, I will cast the whole track again. For example, if I want to invest in the bike-sharing industry, I will vote for the first 3 companies in the top 3 bike-sharing companies; if I want to take out, I will vote for the first 3 companies Although only one company may succeed and others fail, as long as one company succeeds, it can bring me dozens of times hundreds of times of profit. My profit is sufficient to cover the cost of those losses. The yield is not low.
When investing in the digital currency field, we also need to learn from such an investment method. Even if we are very optimistic about a certain company, we cannot put all of Bao on it, because the uncertainty is too great, and the Black Swan incident is really Too much. What's more, even if this company does a good job itself, for example, a company like Ethereum, but V God is infected with coronavirus, or there are some other unexpected situations, then how will Ethereum go in the future? Not good, does anyone really say it's bad to replace V God. Therefore, no matter how optimistic a project is, we need to find ways to diversify this risk and increase the anti-fragility of investment.
The above are some of my thoughts. I believe that traditional financial market investment and digital currency investment still have more differences in terms of thinking.
Oil, Tesla and Bitcoin
There has been a long-lasting rumor in the market that all the Middle East wars. The fundamental core issue is the struggle for oil resources. The several Middle East wars in which the United States participated were also aimed at maintaining US dollar hegemony and Major global oil transactions are settled in U.S. dollars. The advent of the electric vehicle industry is likely to accelerate the collapse of oil companies? For panic investors, halving is coming, is there still a bull market? When does the currency price rebound?
Oil war triggers global stock market disaster
In early March, the Fed announced an emergency rate cut. This is the first rate cut by the Fed after the 2008 financial crisis. On Friday, the OPEC meeting failed to negotiate. After Russia withdrew from the transaction, due to the failure of oil exporting countries to reach an agreement on production cuts, Saudi Arabia unilaterally announced its agreement with Russia. The oil war started. On March 8, the Saudi stock market plummeted, and the Kuwaiti stock market melted for the first time. On March 9, Brent crude oil plummeted by 30%, the largest drop since the 1991 Gulf War. **On the same day, the global market fell into a panic-like plunge:** Kuwait's stock market **melted down** again, U.S. stocks melted down, Brazil's stock market melted down, and European, Australian, Thai, UAE and other multinational stock indexes hit their biggest one-day decline since the 2008 financial crisis. Japan, Russia and other countries officially Enter a technical bear market.
**Historically, Saudi Arabia has waged three crude oil wars.** Including 1985, after several years of OPEC production cuts, Saudi Arabia launched a price war, after which oil prices plummeted by nearly 70% in the next six months. In 1997, Venezuela's overproduction caused Saudi Arabia to fight again. Oil prices fell by 50% in the following year and a half. In 2014, Saudi Arabia failed to persuade countries, including Russia, to join the production reduction plan, and the war began again. The price dropped by 65% in the following year and a half.
From the reasons summarized by everyone, one is the spread of the epidemic globally, resulting in weak demand expectations and falling oil prices; the other is the breakdown of OPEC and Russia's crude oil production reduction negotiations, and Saudi Arabia decided to increase production and sell crude oil at a discount and **open prices War and caused the plunge.**
Iteration of new industries exacerbates stock market fight
So the question is, why can Saudi Arabia have had such a huge impact in the past several oil crises? The core behind petrodollars this nature, has been enduring a market rumors that all of the Middle East war, the fundamental core issue is competition for oil resources, while the US participation in several Middle East war, **its The purpose is also to maintain the hegemony of the US dollar, so that the world's major oil transactions are settled in US dollars.**
However, petrol dollars will also encounter two important problems. One is oil itself. The **future world is an electric era. All transportation vehicles will gradually move towards electrification.** The demand for oil is greatly reduced. The current economic environment and cycle Different, this crude war is not the same as the previous three times. Previously, it was in the upward phase of the economy, and it was a competition between incremental markets, but this time it was basically a stock market fight. Who will pay for the plunge in oil prices in the end, and what will happen when the supply is far greater than the demand?
The era of the new energy electric vehicle industry represented by **Tesla** is approaching, and **the demand for oil is also constantly decreasing. Will this accelerate the collapse of oil companies?**
Twilight of stocks and bonds killing US dollar hegemony?
Crude oil is the source of the upstream industry. The decline in crude oil will accelerate the mass production of materials in the upstream industry, but the actual market demand cannot meet the supply of production materials. At this time, the upstream industry is reluctant to sell and the market material prices have skyrocketed. As a result, prices in the market have skyrocketed, but the actual excess means of production has either been destroyed or dumped out.
Coincidentally, at **this time, the US dollar has been in a state of** oversupply **in the past few decades. Petroleum dollars, crude oil fell, and the US dollar will continue to oversend to maintain balance** . The world ’s assets are all denominated in US dollars. If the US dollar is oversold, it will cause various other currencies to rise in name. After the rise, these moneys have no actual gain, but they have risen on the surface. What should we do? Is to add to various industries to cause inflation.
Subsequently, the **Fed's sudden and sharp interest rate cut wanted to curb this financial turmoil** , but the market's response was: the Dow Jones index plummeted from a maximum of 29,500 to a minimum of 24,681, a decrease of 16%; the Nasdaq index plummeted from a maximum of 9888 to 8264, a decrease of 16.0%; The S & P 500 ETF fell from a high of 339 to a low of 285, a drop of 15.9%.
Coupled with the further rise in US Treasury prices, yields are still falling. The 10-year U.S. Treasury bond ’s implied yield **has** broken down by 0.5%, which **has hit a record low.** The 30-year U.S. Treasury yield has fallen below 1%. It was below 1% for the first time and reached a historical low of 0.98%. **The US financial market can be described as a double kill of stocks and bonds. This is unprecedented. This will turn into a vicious circle.**
Under the nest, the maggot has finished eggs
Faced with the turbulent economic situation, global financial assets have been sold off in a frenzy, and for a time, concerns about a new global financial crisis have begun to spread. At this time, Bitcoin's performance during the last financial crisis affected many people's nerves. Compared with traditional financial markets, **Bitcoin's current correlation with traditional financial markets is very low.**
This time Bitcoin has plunged together with traditional financial markets for the following reasons:
First of all, the digital asset market has risen by about 40% from January 2020 to now, exceeding the expectations of an investor. It **is normal and healthy for a large correction.**
Secondly, the market's overhype on bitcoin halving has caused some market participants to be afraid to miss the opportunity and enter the market. If a thing is concerned too hot, the risk will become higher and higher, resulting in more and more downside space and less and less upside space.
Once again, **this time various assets such as the stock market and gold are being sold off, and Bitcoin is not immune.** One reason is that the overall financial market panic caused by viruses and the global economic slowdown. **People will use cash at this time. Be king, not buy these safe-haven assets.**
20+Advantages of Bitcoin Cash ... join this cash revolution
**Benefits of Bitcoin Cash to Users**
**1.** For the first time in human history, Bitcoin Cash allows users to fully control their money. Bitcoin cash is an equal currency that cannot be frozen by banks or the US government.
**2.** With Bitcoin Cash, you don't need to trust anyone. Your funds are hosted in mathematics and cryptography, not in the hands of anyone.
**3.** Send or receive any amount of Bitcoin Cash, anyone, anywhere, instantly and almost free. There is no need to fill in lengthy bank forms, and neither the sender nor the receiver need to provide private information.
**4.** In the past, how many people lined up in banks every day wasted time. Bitcoin Cash saves millions of people every day in time and money.
**5.**Bitcoin cash helps connect billions of unbanked people and valuable expertise with the global economy, creating millions of new jobs and bringing economic growth to the entire world.
**6.** Bitcoin Cash supports micro-rewards, so you can write articles or create video content, and get rewards through your creations.
**7.** Bitcoin cash has high volatility, which may be both a plus and a minus, depending on how people view it.
**8.** Bitcoin Cash protects your purchasing power from inflation and hyperinflation, just like gold and silver because it exists outside fiat currencies and banking systems.
**9.** Unlike fiat currency, Bitcoin Cash cannot be counterfeited, so your chance of holding counterfeit currency is zero.
**10.** In the past, banks could legally confiscate depositors' funds at any time during the financial crisis, and users had no recourse. The bank's risk of door closure may not be able to recover the user's money, but Bitcoin Cash has a perfect record, online 24 hours a day, and has been doing so since 2009.
**11.** Bitcoin Cash has the privacy protection of CashShuffle and CashFusion. This means that you can fund money privately with anyone without revealing your private information, which is useful in situations where you want to donate to an organization and do not involve anyone.
**12.** Bitcoin Cash may prevent government corruption. Historically, like the US government, there has to be more or less corruption and exploitation of citizens' assets. And Bitcoin Cash lets you transfer your wealth to a safer place anytime, anywhere.
**13.** Bitcoin Cash allows you to bypass financial censorship, restrictions, and sanctions because it is a peer currency that cannot be restricted.
**14.**You can use bitcoin cash to pay for hotels, airline tickets, food, daily necessities and more.
**15.** Protests are currently taking place in India, Iran, Chile, Bolivia and other countries, and the government must suppress and control millions of citizens.
Banks with coinage rights are like a money printing machine, through which the entire country can be controlled. The government can use it to pay for police and military expenses, it can also be used to build party power, it can be used to pay for propaganda activities, it can be used to invest in companies, and to suppress all opposition through white terror.
When the government lost the bank, everyone used BCH , which also reduced their ability to suppress and control the people. Suddenly, power is back in people's hands, because no one can print more Bitcoin cash. The supply of Bitcoin Cash is fixed, and there will always be only 21 million Bitcoin Cash.
**16.** Bitcoin Cash is a programmable currency that allows smart contracts, tokens, dividends, anonymous voting, and many previously impossible innovations. It's like the early days of the Internet age, where rapidly evolving technologies and crazy innovations often occur.
**Benefits of Bitcoin Cash to Merchants**
**1.** Bitcoin Cash transactions are instant and secure.
**2.** The risk of refund is almost zero.
**3.** Stop worrying about credit card fraud.
**4.** Never worry about centralized payment systems like PayPal freezing or stealing your money.
**5.** There is almost no transaction fee. As a merchant, you can receive the full amount paid by your customers.
**6.** Very easy to get started. Just install the Bitcoin.com wallet and the Bitcoin Cash Register app and you can start accepting Bitcoin Cash payments in minutes.
**7.** Bitcoin Cash will not treat any business differently. If a merchant runs a bank or an organization that the U.S. government may not like, funds may be confiscated at any time, just as funds used to help Iran may be confiscated at any time. Bitcoin cash cannot be taken away by banks or governments, as long as you don't allow it.
**How to join this cash revolution**
**1.** Use Bitcoin Cash whenever possible. Today, users can use the Purse.io service to buy anything at 30% on Amazon using Bitcoin Cash. Users can instantly pay for flights, hotels, food and other services using Bitcoin Cash.
**2.** Pay employees cash with Bitcoin cash, which can build a closed
-loop economy. If you are an employee, you should ask for Bitcoin Cash salary.
**3.** Help popularize and spread the benefits of Bitcoin Cash.
**4.** Donate some funds to BCH developers, or contribute your free time to build applications for the BCH ecosystem and service.
**5.** Every time you make a purchase, you can ask them if they accept Bitcoin Cash.
Why use Bitcoin Cash and Why should a merchant accept BCH payments?(BCH Expansion series 2)
BCH Expansion series 1 https://read.cash/@ekrem/several-ways-to-get-high-cashback-with-bch-shoppingbch-expansion-series-1-f115c549
**Why use Bitcoin Cash** instead of USD, EUR or GBP? Why would anyone use Bitcoin Cash?.............
Good question! Fortunately, they have some straightforward answers.
The main reasons people use Bitcoin Cash are:
Control
In general, Bitcoin Cash give you more control. You effectively cut the middleman between you and your money. No bank can decide how long and how long a transaction will take. You can also control where funds are stored and how they are accessed. Of course, control comes with corresponding responsibilities.
Speed
In addition to saving international transfer fees, you can also enjoy higher transaction speeds. Your bank takes a few days to do anything, and Bitcoin Cash can be done in Seconds.
Convenience
With Bitcoin Cash , online payments are easier and faster. If you want to donate or pay for something that won't ship, you don't need to disclose any personal details. Simply send bitcoin cash to their wallets address you've done.
Privacy
One of the main advantages of using BitcoinCash is that it provides privacy and relative anonymity. You do not need to provide any personal details to access Bitcoin Cash wallet .
Why should a merchant accept BCH payments?
Many merchants and users have adopted Bitcoin Cash as a payment method. But there are also many companies, especially online ones, who do not yet know what the benefits of accepting BCH payments are and what they can gain from them. This guide will help these companies better accept BCH payments.
**Why accept BCH payment?** Different people have different answers to this question. Some people because the bitcoin cash can help the poor, and some people because it makes the world more free. For merchants, the reason for accepting BCH payment is that Bitcoin Cash has advantages over cash and credit cards. It can also provide users with a better service experience and attract more users.
**BCH has no refunds and fraud**
Unlike credit card transactions, Bitcoin Cash transactions are irreversible. Once the funds are sent, payment is a definite thing. The transaction is irreversible unless the merchant agrees to a refund and recoups the coins. In real life, many merchants accept credit card payments, and it often happens that the goods have been delivered, but the customer lied that they did not receive the product. Merchants can't get their dues from credit card companies, and they need to pay for items and shipping costs. This problem does not arise with Bitcoin Cash.
**Almost zero transaction fees**
Bitcoin Cash is decentralized and there are no intermediaries in the network operation, the handling fee is also very low.
**Better user experience**
Unlike traditional credit cards, it is easier to pay online with Bitcoin Cash. You don't have to take out your credit card and enter all the information correctly, just enter your name and shopping information and pay directly, saving a lot of steps and time. More importantly, using Bitcoin Cash also provides users with a more secure consumption experience because they do not need to worry about theft of their credit cards.
**Additional appreciation**
Holding fiat currency usually means losing 1% to 3% of assets every year due to inflation. Since the launch of Bitcoin Cash, the value of Bitcoin Cash has been continuously increasing. If the merchant accepts BCH payment and holds it, they will get extra money.
**More customers and internationalization**
Accepting BCH payments can also expand the customer base. More and more consumers are using BCH to purchase goods and services. Not only that, anyone in the world with a cell phone can use BCH. This means that if they can't get credit card or bank services, or their network is not good, these customers can still use BCH to pay. And BCH can be used worldwide, regardless of geographical restrictions.
As a merchant, in order to be able to accept Bitcoin Cash payments, you can download a Bitcoin wallet to receive BCH. If it is an online store, it can be combined with payment processors BitPay, Coinbase Commerce , Coinpayments, and Coinify.
BCH miner donation plan and future
The essence of this problem is that decentralized cryptocurrencies have major issues that require public decision-making, and how to conduct community governance. To establish a governance mechanism, it is necessary to have money and a governance fund, which has been the focus of recent controversy.
BCH's previous public expenditure, mainly the necessary incentives for developers, was provided by donations. It is mainly donations from large currency holders. Bitmain, Roger, etc. are the main donors. But for an economic system, donations are a major problem. For example, Roger and developer Amaury, one is a donor, and the other is a developer. After a long time, the defects of the system have become more and more intense in the form of personal friction.
The weakness of BCH compared to BSV (so that the computing power war was almost killed) is due to the lack of funds, media announcements, professional planning, scattered community organizations, and so on. Jiang Zhuoer's fund plan is to take part from the new coin issuance for public affairs. Public affairs are originally everyone's business, and they should be public financing before.
But the controversy is that many people think that Satoshi's original intention was decentralization, and the generation and management of governance funds will lead to centralization, so they oppose it. In fact, they put too much emphasis on decentralization. Opponents' worries are mainly in two aspects. First, taking the money directly from the new currency changes the underlying model; second, the side that manages the fund is the center, contrary to the original intention of decentralization. After a period of controversy, a preliminary consensus has been reached: the need for a public governance fund. Although there have been many controversies, they have begun to be resolved, which is an improvement of BCH.
**Miner Donations**
At present, there are six or seven teams involved in the development of BCH. Most of them are voluntary development. The development work itself has no income, although some companies will donate. The long-term stable operation of an economic system must rely on invisible hands. Go and encourage everyone to participate. Like BCH's goal is to make the world currency economic system, then we must build our own endogenous, self-consistent, self-sustaining ecosystem.
**BCH's competitive environment and future opportunities**
The competitive targets of decentralized currencies are fiat and company currencies. BSV quickly became a centralized coin, which was a retrogression. In the history of currency for thousands of years, private currency must not be able to do the country with a centralized currency. The advantage of centralized coins is that they are easy to pull and engage in marketing. This is their short-term advantage. In the medium and long term, a centralized coin will have great risks due to various uncertainties facing the center. Although the decentralized currency has weak short-term control ability, it has stronger vitality in the medium and long term, and the community is relatively hardcore. In general, I don't consider BSV at the same level of BCH. Although the underlying structures are similar, they are not the same type of cryptocurrency. Therefore, I don't care about its price performance.
Several ways to get high cashback with BCH shopping(BCH Expansion series 1 )
With the popularity of BCH around the world, shopping with BCH is becoming more and more commonplace. So do you know how to get cashback with BCH shopping?
**Lolli-browser plugin**
Lolli is one of the few plugins that allows users to earn cash back when shopping with Bitcoin Cash. For new users and non-technical people, this is a great way to earn BCH without having to worry about transactions, KYC laws, and all other obstacles they have in using BCH. The purpose of Lolli is to make it easy for as many people as possible to earn, own and share Bitcoin Cash. Lolli firmly believes in the power of Bitcoin as a global alternative currency and universal value store, and wants to share it with the world.
Lolli plugin has huge shopping platform support, such as Wal-Mart, Hotels.com, Groupon, Priceline, Barnes & Noble and other international companies.
**Mobile APP-Pei**
Another way for you to earn back Bitcoin Cash is to connect your existing bank card to Pei. Pei is a mobile application that connects to your existing debit and credit cards and automatically provides cashback for your extra savings in dollars (Paypal or gift cards).
Pei was founded in 2018, and since then Pei has made cashback very easy, for which they have gained a lot of users because no one hates receiving cashback. The user only needs to connect the card to the Pei account, so that the next time you make a purchase at a partner merchant (Pei cooperation platform), Pei will automatically return the user's cash reward.
Pei has connections to more than 60,000 stores and thousands of retailers across the country, from Target to Trader Joe's to Sephora, which provides users with ample usage scenarios and can earn cash almost anytime, anywhere. Pei's BCH cashback is not the same as many boasted gimmick cashbacks, which require the use of coupons or the purchase of specific goods to get cashback, but as long as they use BCH to spend on cooperative platforms, they can get cashback. For example, if you buy a pair of socks at Walmart or a cup of coffee at Starbucks, you can get cash back.
Pei can handle everything for you, and Pei can convert your regular debit or credit card into a cash back card, so you can earn cash back easily and passively. Users don't need to worry about security either. Pei uses bank-level 256-bit encryption to keep users' information secure. When linking a debit or credit card, you can also protect users ’private information through two-factor authentication. So far, the Pei application is easy to use, yields fast, and has not had any bugs so far.
**Cashback is a way to increase BCH usage**
It should be more than me alone that Bitcoin Cash is the future. The mission of BCH developers is to make BCH the best money in the world through continuous technological development, and the mission of the community is to launch BCH and become the world. Most people use money. Such as Lolli and Pei are important ways to achieve this vision, they can make it easy for everyone to earn, store and share BCH.
Online shopping is one of the most incredible innovations of the 21st century. It is also one of the rarest opportunities for BCH. We can use the power of BCH to influence the world. We want to live in a world where every payment is as fast, cheap, and universal as sending a text message. And BCH's mission is to spread BCH to billions of people around the world with the click of a button.
I believe that over time, we will continue to see more services like Lolli. It's a great adoption tool for new users, and a great way to store additional digital currency for current users and BCH investors. There will be more and more products and services built around digital currencies, which will bring a better experience for all of us. BCH is superior to fiat currency in almost all aspects, and I believe that BCH will eventually become the most powerful competitor of fiat currency like US dollar.
@ekrem