Why Bitcoin Cash is worth LESS than Bitcoin (BTC) ... and why that is going to change.

in #bitcoin7 years ago

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Having experienced huge delays, and being charged HUGE transaction fees for sending BTC ... and then having experienced the speed and micro fees charged when sending BCH ... there is absolutely no question as to which version of bitcoin is more functional and useful as a real world cryptocurrency. YES, BCH wins this fight hands down!

In fact, if the two were in a boxing ring, BCH would KO BTC within the first couple seconds, while BTC was still trying to make an intimidating, ugly face growl.

It isn't even a contest!

So why isn't BCH worth as much, or more, than BTC? It's pretty simple ... most people who have BTC and BCH are not using them for real world transactions! Instead, they are holding them, and trading them, as investments.

So when will BCH be worth as much, or more, than BTC? Easy ... when that changes!

So what will bring about this change?

If the US and the world were to experience a period of hyperinflation, in which no one trusted or wanted paper money, people would be looking for ways to maintain their purchasing power. Gold and silver are the preferred monetary metals, but you won't be able to walk into a grocery store and buy a loaf of bread with gold or silver. Instead, you'll have to SELL your metals to a precious metals dealer for paper money to use at the store, and by the time you go to spend it, your paper is worth less. Not to mention dealer's receive a discount off the "spot price" when you sell, and they receive a premium over "spot" when you buy!

Contrast that with cryptos where there is no middle man you have to pay, and you could use your cryptos to by anything, anywhere from anyone, and pay any amount, and you immediately see the value of cryptos over metals.

In a period of hyperinflation, people will be willing to trade their paper money for anything that is holding it's value. BCH is able to use any of the existing infrastructure already built for BTC. Stores will be able to easily accept BCH and would prefer it, because the transaction fees would be so much lower. Consumers will also appreciate the lower transaction fees because it means they get to use more of their BCH toward purchases, instead of paying miners for verifying transactions.

It will be this sort of event that will show the true advantages of peer to peer cash (BCH) vs a store of wealth based crypto (BTC). In fact, BCH could be so preferred to BTC in this scenario, that it's value could increase beyond that of BTC.

With all the financial time bombs that exist in the economy (the upcoming failure of Deutchbank that will set off a derivatives meltdown that affects every bank in the world; Student Loan Defaults; Sub-Prime Auto Loan Defaults; Italy and Spain (and many more) Sovereign Debt Defaults; a Bond Market Meltdown; and foreign countries moving away from the US Dollar for trade settlement) it is clear we are nearing the end of the unsustainable, debt based, fiat banking system, and the beginning of an honest money system that has never before in the history of mankind been able to exist.

This is why, if you received BCH when it forked from BTC, you should continue to HODL, and if you didn't, you might want to consider "gettin' you sum."

Please UpVote and share on Facebook, Twitter and other social media. Peace.