Advantages of Bitcoin Cash (BCH) in payment

Recently, a very interesting point of view has emerged within the BCH community. Some users are questioning whether BCH, as a digital asset with large price fluctuations, is suitable as a payment method. Of course, this is not a novel topic. As early as the Bitcoin community era, there has been controversy over the payment community. Admittedly, as a decentralized asset, BCH naturally conforms to the concept of free wealth. Based on the blockchain system, your property must be safe and cannot be controlled by any other third party, but at present, if you want to achieve world currency , Must meet 3 conditions: stable value, payment attributes, user recognition. This article will analyze whether BCH has the conditions to become a world currency from these three aspects.

Value stability

Currently, the development of digital currencies is at an early stage. Except for individual stable currencies, the price of all digital currencies fluctuates greatly. This is because unlike traditional stock exchanges, digital currencies such as BCH are available on all exchanges 7x24 Can trade. The characteristics of the T + 0 trading model and the absence of a daily limit system make the BCH price fluctuate greatly. This has caused great fluctuations in digital currencies. At the current stage, including BCH, all digital currencies have this attribute. At present, it is not mature to simply use digital currencies as a payment method. Globally, the concept of digital currency is still in its infancy and belongs to niche playthings. After the digital currency industry is more robust in the future, the BCH price will surely become more stable to facilitate value circulation.

In the current example of digital currency in the actual application of payment transactions, if it is not BCH's collection, then merchants will generally use the extremely convenient legal currency deposit and exchange venue at this stage to receive digital currency with large price fluctuations after receiving BCH. Replaced with fiat currency, so this transaction mode allows merchants to accept BCH regardless of price fluctuations in the short term, which is currently more common. But this process also involves a problem. The transaction process must be fast enough and the transaction fee must be low enough. This is the transaction throughput problem that we will discuss below.

Payment attribute

transaction throughput is the maximum number of transactions that BCH can accommodate, and it is also a type of payment attribute. Is the transaction fast enough and the cost low enough? Can the network support a large number of transactions? As mentioned above, the current payment scenario of digital currency has been mentioned. In this scenario, low rates and high timeliness must be maintained. If I bought a TV using digital currency today, and the transaction was completed 3 days later, the fluctuation of the currency price in 3 days is enough to generate a large difference, coupled with the high handling fee, it is slow, expensive and lossy to pay The method will certainly not be adopted.

For example, in the previous Steam, Steam accepted Bitcoin payment at first. At that time, Bitcoin transactions were fast, the commission was low enough, and merchants and users were happy to use Bitcoin. However, in 2017, the Bitcoin network was completely congested, and the Bitcoin community was divided into two. BCH and BTC were born. The BTC transaction fee that inherited most of the resources was as high as $ 20 each, and sometimes the transaction could be completed even after 1 week. When there is no congestion, it can process up to 3 transactions per second. This payment attribute is obviously unacceptable. Steam resolutely canceled the BTC payment option.

There are many merchants like Steam, such as Microsoft, Bitpay, etc. They either canceled the BTC payment or replaced it with BCH payment. In comparison, BCH transactions are quite convenient. So far, there has been no blockage. The rate has remained below $ 0.001 for a long time. Even in the stress test, more than 2 million transactions are faced in a day. BCH still maintains this low fee. Rate, the transaction can generally be completed within 1 hour. In the stress test on September 1 last year, BCH achieved the highest record in the currency circle. It processed 2.1 million transactions that day and processed 23.8 transactions per second. In the case of practical applications in the industry, this is the record with the highest actual transaction processing capacity. , Has not been broken so far. In the face of small payments that require instant transactions, the development team is developing the Avalanche protocol, which can realize zero-secure transactions that are absolutely secure without any risk. At present, BCH is being used on a large scale in Venezuela and other third world countries.

To

put it simply, user recognition is actually the most difficult and critical condition to achieve. If no user buys it, even if the product is easy to use, safe and stable, it will not help. For example, many altcoin ICO coins are often referred to as "million TPS". In fact, they are essentially gimmicks. But it has to be said that many so-called second- and third-generation blockchains use new technologies that change with each passing day to compare with the Bitcoin that was born ten years ago, and they do have many technical advantages. But BCH is still that BCH, and altcoins are always considered altcoins. Bitcoin Cash (BCH) has a historical block record of Bitcoin ten years ago, the same ledger, the same philosophy, the same vision, the miners and developers of the original Bitcoin community, all these tell us that BCH is that decade ago Bitcoin. This is why BCH has the world's most active community in the industry.

Summary

At this stage, BCH is the digital currency with the most payment attributes in the industry, but it is still a long way from the world-class transaction scale, and the BCH community still needs to continue its efforts.