I noticed that transaction number in the Bitcoin Cash network is growing and that at this moment we are already in level with Core volumen of transaction for day, and I was wondering why that was happening, pretty much trying to find the reason.
Well if AnyHedge protocol is processing transactions that settle on chain that will explain why the hype on daily transactions, pretty much users are going short and long on their BCH holdings, when you choice to hedge your position pretty much your are shorting the BCH price and when you long your are betting price will increase, and it is peer to peer, with no custodian or middle men in the middle.
AnyHedge and Detoken are bringing DeFi to Bitcoin Cash, well this is all old news at this point, but for the way it looks nothing is stopping Detoken from creating markets for even more assets, pretty much you could hedge or long any asset that lives on the Bitcoin Cash network.
So I pretty much would say that soon your will able to do what other protocols that work on DeFi are already doing but this time in the Bitcoin Cash network, eth because of DeFi has a lot of usage and transaction cost is very high, so once more assets are available for trade, hedge or long on BCH transaction will continue to increase at a rapid ever increasing speed.
DeFi in Bitcoin Cash will be the trail by fire for BCH, pretty much I totally expect 32MB to get fill within the next 10 years, and I predict that very soon we will have another debate if we should increase the block size from 32MB to 128MB, but make no mistake DeFi will bring new users to BCH and those transactions will bring new money to BCH.
Since BCH has lost pretty much 99% of its value, I suspect that institutional investors are already using DeFi or at least testing it, and I do believe they are buying many more assets than just Bitcoin and Ethereum, I do think they are buying Bitcoin Cash but they don't want to tell the world about, or maybe the regulators don't let them talk about it.
I am pretty sure institutional investors are not idiots and they make their homework before buying, BCH has the capacity to support many transactions, and I think DeFi will be the test of fire for BCH, if IV are not buying BCH just yet, I could say for sure they are watching the developing of DeFi. For a long time eth has taken DeFi for themselves, but Bitcoin Cash has one advantage that eth doesn't have, BCH will be seen as the Bitcoin that could have been but is not, what I actually mean is this:
Once users and traders start using more and more DeFi products and start trading in a decentralized way and fees keep on being cheap, many eyes will see this and will start to pour in their money into BCH products. At first people will buy other assets like tokens and other assets that live in DeFiBCH, but eventually people will start to hold and hold even more BCH.
I think that the usage of DeFi will test us, and it will show to the world that people like Roger Ver were right, that you need cheap transactions for the world to create new wealth and new instruments.
At the moment for the regular person I would say hold Bitcoin Cash, just buy as much as you are willing to lose, not actual financial advise, and observe the daily transaction volumen. Don't put attention to haters, let the market decide if a DeFi product is something the market needs or not. Point, the market is already liking it because there is use for Detoken already, the only thing that needs to happen now is for users to find out about it, and for assets to be created.
And I would say that if eth keep on going up and bch fees are kept very low in a few months to years eth assets may start to move to bch. Many other coins are actually working to attract DeFi traders, so this space is very competitive.
One advantage once again will be that at this point, we are what Bitcoin was meant to be but it isn't because their blocks are too small. At this point the first mover advantage will be pass to bch, because it will show that Bitcoin Cash was supposed to be what Bitcoin Core isn't. The Bitcoiners will have no choice but to keep on promoting the 1MB blocks because saying larger blocks will mean centralization at some point, and if they raise the blocks to even 2MB it will be game over because it will show that you actually need the blocks to raised, pretty much you are screw if do you are screw if you don't.
In conclusion, DeFi transaction volumen will be the trail by fire for Bitcoin Cash, and BCH supporters will get the recognition they deserve, but if big blocks fail to deliver on BCH it will be the end as well. Core has always said that we have the capacity but the usage very soon that will put to the test, and once blocks get bigger and bigger beyond 8MB in a regular basis the bitcoiners will be proven wrong and I totally expect BTC fees to go up while money start to leave their network for BCH.
You as person without trading knowledge like me you just need to hold Bitcoin Cash in your wallet and enjoy the ride, and remember keep an eye on transaction volumen that will show you that Bitcoin Cash is being adopted in DeFi and other protocols, and as such Bitcoin Cash supporters will get what they deserve.