What if BitcoinCash (BCH) replaces Bitcoin (BTC) core

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Avatar for nomadghada
2 years ago

Disclaimer: This is not financial advice and just meant to be my own speculation ideas based on the information available to me, I could be wrong; I am not an expert or a developer.

BCH > BTC

Apart from the obvious price prediction I want to look at the effects it will have on the CryptoVerse.

Most people speculate the same in purely dollar value terms as most of them are just looking to get rich and ultimately sell their Crypto for fiat currency.

There is nothing wrong with wanting to be rich, but it is a problem if you consider a get-rich-quick scheme. There are no free lunches my friend.

Let's get the price prediction out of the way

So that we could jump to the good stuff

As of right now Bitcoin (BTC) is worth $48,145.01 with market cap of $905,078,647,476 and the total supply of 18,799,012 BTC,

Whereas BitcoinCash (BCH) is worth $625.74 with market cap of $11,782,199,508 and the total supply of 18,829,256 BCH

Data taken from the CoinMarketCap.com

Now to make BCH bigger than BTC we'll simple increase the market cap of BCH

If 18,829,256 supply of BCH would have the market cap of $905,078,647,476 the price of 1 BCH would be $48,067.68

Which is quite close to the value of BTC, which is because being a fork of BTC it has nearly the same supply.

at 1 Trillion Dollar market cap the price of BCH would be $53,108.84

Now that would have gotten that out of the way let's look at what it would mean other than just dollar tag.

BCH tips may disappear

Sure we love getting tips in BCH and Read.Cash & Noise.Cash make it possible to get BCH as a tip for writing some good content.

But if BCH where to be #1 then those tips would be gone as it might be too valuable, as what currently a $0.10 tip would mean in terms of actual BCH being transferred will be significantly be reduced. Which would mean that the transfer might be less likely to be prioritized by the miners.

Fees will still be less

One of the reason BCH was created in the first place was the block size on the blockchain and by increasing the block size you can fit more information in a block thus reducing the fees and processing time.

Since the amount of transactions would go up blocks might become full much sooner, but the underlying principle would still be the same and the fees would still be the same amount in BCH coin fraction terms. Sure that fees will defiantly mean more in dollar terms but still presently they are so little that a few cent worth can transfer a whole BCH coin, even in our hypothetical scenario you might be paying $2-$3 for moving the whole BCH coin but that would still mean that you are moving around $40K at that cost.

The Trading pairs will change

One of the key change you can see would be that the trading pair on the major exchanges will shift from being dominated by the pair denominated inn BTC to that of the BCH.

Sure, many of the exchanges provide USDT and USDC trading pairs on their platform, but these are not the major volume exchange. Much of the trading volume comes from BTC denominated trades.

This will mostly likely increase the trading as the trade settlements would be more economical.

Would BTC be #2?

No one can say for sure but this seems unlikely the after be dethroned BTC will remain relevant in this scenario as most of the Bitcoin's value comes from the people assigning it that value and it doesn't have any modern blockchain features. Moreover, it is inherently less efficient than majorly most of the CryptoCurrencies in market today.

Therefore in my humble opinion it will fall in term of use and value but will still be in the top 20 or 30 CryptoCurrencies similiar to how Ethereum (ETH) is #2 at the moment and Ethereum Classic (ETC) is #22

Smart Contracts on BCH

As far as Smart Contracts are concerned Ethereum is still the king and even through there are a lot of problems with it (fees anyone) currently it has the biggest ecosystem for DeFi, NFTs, Tokens and protocols

Whereas it is more likely in this scenario that more efficient alternative like Cardano or Tezos might replace Ethereum or it could be Eth 2.0 that replaces ETH.

No matter what the situation is unlikely BTC which doesn't have any scope of smart contracts, BCH actually does have a side chain called smartBCH which could perform the Smart Contracts on the BitcoinCash blockchain.

That could easily make it easier to bridge the smartBCH with Ethereum of Cardano to perform cross platform functions. This could potentially mean a lot of new function and user friendly features could be developed that could push for a wider adoption.

Wider use of BCH for regular payments

One of the biggest criticism of Bitcoin is that it is not a currency and people see it more as a store of value asset. Which isn't exactly what a CryptoCurrency should be, it is meant to be spent and used like, well a currency.

Bitcoin has lost that foundation as it is not easy to move or use and people see it as a investment that could rise in value in fiat terms so that they could sell it for fiat like the dollar.

With BCH you don't have that issue as the efficiency afforded by the coin will make it easier to be used as a quick easy currency to use.

What if a coin other than BCH replaces the BTC?

Even in the scenario that some other coin replaces BTC like either the Cardano or Nano or ETH 2.0 or any of the other such great project (No it will definitely not be Dogecoin or ShibaInu), then you can see still a lot of the above mentioned changes and a wider adoption.

Because mainly the problem that CryptoCurrencies faces right now it the legacy blockchain being the biggest players and small group of people banding together to hold and move it as per their decided interests.

While Bitcoin will never become irrelevant it does hinder a mass adoption and use as a mainstream tool for everyone.

If in a scenario the view of the people shifts from that of seeing Crypto as a speculative and volatile investment asset to that of the daily use medium of exchange, only then we could see a wider mainstream adoption of CryptoCUrrency.

Final Conclusion

In my ideal world BitcoinCash (BCH) would be the #1 CryptoCurrency that while 1 BCH will be a lot of money it will not be calculated in how much dollars it can get you, but much purchasing power it has i.e. How much rice it can buy? or How much water it can buy?

And Cardano would be #2 with most of the Smart Contracts of the world being executed on it, from the DeFi protocols and tokens to the development of the decentralized Web 3.0

In my views that will be a great sight to be behold not just for those who hold BCH and ADA or the Crypto community but to the whole world at large.

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2 years ago

Comments

"But if BCH where to be #1 then those tips would be gone as it might be too valuable, as what currently a $0.10 tip would mean in terms of actual BCH being transferred will be significantly be reduced. Which would mean that the transfer might be less likely to be prioritized by the miners."

BCH can flippen BTC and still have low fees and all TX's make it into the next block. BTC is small and broken. BCH is bigger and can handle the small load BTC can't handle. That said, BCH can not scale for massive worldwide adoption yet, so it will also remain limited until the developers fix that.

$ 0.00
2 years ago

Yes, even at 100x BCH will still be cheaper to transfer and use. What I meant was a few cents worth of BCH will be mean a smaller fraction of the BCH coin, this could make smaller transactions bit difficult. But I am sure the great team of developers would fix this scalability issue as it is present. I have great faith in BCH team and community

$ 0.00
2 years ago

The BCH coin is already divisible into something like 10 or 100 million pieces. Developers could add another zero or two if needed. I think your statement that miners might not add Txs to a block is mistaken.

$ 0.00
2 years ago

@Ellie OMG, thank you for your generous tip. You're awesome

$ 0.00
2 years ago

"the fees would still be the same amount in BCH coin fraction terms. Sure that fees will defiantly mean more in dollar terms but still presently they are so little that a few cent worth can transfer a whole BCH coin, even in our hypothetical scenario you might be paying $2-$3 for moving the whole BCH coin but that would still mean that you are moving around $40K at that cost."

No this is not true. If the price of BCH goes up, then the fees paid in BCH terms goes down, so that it stays $0.001 fee / transaction no matter how much the price of BCH goes up.

That is the entire point, that it is cheap and easy to trade and always will be.

$ 0.00
2 years ago

Can you please explain how would that work?

$ 0.00
2 years ago

I do not think it is automatic as I think was suggested by BCP above. Wallet software may need to be updated and further divisions (decimals) added to BCH by developers. The BCH teams are committed to keeping fees low, so I am sure there will be ways to enjoy that feature. There may be exchanges and wallets run by anti-BCH humans or just uninterested humans that do not adapt their software to keep fees low. The BCH teams cannot force every software provider to keep fees low.

$ 0.00
2 years ago

I think it will never happens in future. Because BTC don’t want this that’s why BCH is still less trending and no one is promoting. If Elon musk take a notice about BCH then maybe it happens.

$ 0.00
2 years ago

It may happen or it may not happen, only time can tell. But I can be sure that if it does happen, then it won't be because of Elon or any celebrity. But because of its use case and utility.

$ 0.01
2 years ago

Yes we can’t ignore that BCH has its own strong potentials. Btw, let’s see what will be the future of BCH.

$ 0.00
2 years ago

Yup, let's hope and see the the future will be. All I hope is that it is better for everyone.

$ 0.00
2 years ago