Transaction volume on BCH network.

I noticed that the transaction number in the Bitcoin Cash network is growing. At this moment, we are already at a competitive level with the Core volume of transactions for the day, and I was wondering why that was happening, pretty much trying to find the reason.

I suppose the SmartBCH protocol will process transactions that settle on the chain. In that case, that will explain why the hype on daily transactions, pretty much users are going to short and long on their BCH holdings in the future once we have a feature-rich decentralized exchange. With smart contracts, it is peer-to-peer, with no custodian or intermediaries in the middle.

SmartBCH is bringing DeFi to Bitcoin Cash; well, this is all old news at this point, but for the way it looks, nothing is stopping DEXes from creating markets for even more assets, pretty much you could short or long any investment that lives on the Bitcoin Cash network.

So I pretty much would say that soon you will be able to do what other protocols that work on DeFi are already doing. Still, 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, shorts or longs on BCH transaction will continue to increase at a rapid ever-increasing speed.

DeFi in Bitcoin Cash will be the trial by fire for BCH, pretty much. I expect 32MB to get filled within the next ten 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 99% of its value, I suspect that institutional investors are already using DeFi or testing it. I believe they are buying many more assets than just Bitcoin and Ethereum. I do think they are accepting Bitcoin Cash, but they don't want to tell the world about it, or maybe the regulators don't let them talk about it.

I am sure institutional investors are not idiots, and they do their homework before buying. BCH can support many transactions, and I think DeFi will be the test of fire for BCH; if institutions are not buying BCH just yet, I could say they are watching the development 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 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 begin to pour in their money into BCH products. At first, people will buy other assets like tokens and other assets in DeFi BCH, 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 to create new wealth and new instruments.

At the moment, for the regular person, I would say hold Bitcoin Cash, buy as much as you are willing to lose, not actual financial advice, and observe the daily transaction volume. Ignore haters; let the market decide if a DeFi product is something the market needs or not. The market is already liking it because there is use for Dexes already. The only thing that needs to happen now is finding out about it and creating assets.

And I would say that if eth keeps on going up and bch fees are kept very low in a few months to years, ETH assets may start to bridge into bch. Many other coins attract DeFi traders, so this space is very competitive.

Once again, one advantage will be that 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 passed 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. If they raise the blocks to even 2MB, it will be game over because it will show that you need the blocks to have more space; pretty much, you are screw if you do, and you are screw if you don't.

In conclusion, DeFi transaction volume will be the trial 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 will soon be tested. Once blocks get bigger and bigger beyond 8MB regularly, the bitcoiners will be proven wrong, and I expect BTC fees to go up while money starts to leave their network for BCH.

If you're a person without trading knowledge like me, need to hold Bitcoin Cash in your wallet and enjoy the ride and remember to keep an eye on transaction volume 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.

BTC has its sidechain now called RSK, but I wonder if the store of value narrative will get in the way of adopting a DeFi token instead of their so-called digital gold.