How Elon Musk Discovered Bitcoin Cash

Bitcoin Cash presents a practical and permissionless electronic money option, a cryptocurrency with low fees and instant speed of transactions.

Every fan of Bitcoin Cash wants Bitcoin to succeed as P2P Electronic Cash.

In our beginnings with Bitcoin, we believed it would become revolutionary digital money and evolve into the standard of digital currency in the rising internet economy.

Sadly, this never happened with the BTC version of Bitcoin.

Bitcoin Cash didn’t stop progress. It develops with several new ideas aiming to build today a P2P Economy.

Layer-2 solutions are welcome but also unnecessary for scalability, as the robust main chain follows technological progress and becomes the catalyst of growth for the network effect.

Bitcoin Cash works well without sidechains or centralized developments, without bugs or custodial mechanics.

Bitcoin Cash Is Serving The Mass Market, Not Just The 1%

Kim Dotcom, like any other entrepreneur, acknowledges the fact that transaction fees need to have the lowest cost possible.

This message by Kim is not just informing Elon Musk about Bitcoin Cash but also eliminates the anti-BCH misinformation spread from biased media sources.

Payment networks (Visa, Mastercard, Paypal, AliPay,) also come with fees, but usually, the fees are low when using these networks. A fee the consumer doesn’t directly pay with the traditional fiat payment systems, but one the merchant transfers to the consumer indirectly by raising the prices. With cryptocurrency, the sender pays the fee.

However, with UTXO model cryptocurrencies (Bitcoin, Bitcoin Cash, Litecoin), the receiver (or the merchant) also pays network fees for consolidating transactions when they decide to move the funds received.

Bitcoin Cash is not a feeless network, but the fees are constantly low.

There are also low-cost options using Electron Cash wallet to consolidate transactions for users with dozens or hundreds of transactions received.

Bitcoin Cash is a powerful competitor to any other payment service.

When, as consumers, we are given alternatives, we select the one that is financially wise for our benefit. Nobody would pay $1, $10, or $60 fees for a soda or daily groceries when cheaper alternatives are available.

We can agree that only 4% of the internet population is involved with cryptocurrencies. However, the vast majority did not use cryptocurrency for payments or purchases.

Moreover, most newcomers between 2020 and 2021 got trapped in custodian schemes like Celsius, Terra Luna, BlockFi, and exchanges like FTX, expecting high yields but undertaking extreme risk they probably didn’t comprehend.

The Bitcoin Cash community was always warning against the use of centralized schemes, promoting only organic and non-custodial P2P use of cryptocurrencies.

You can buy a soda with Bitcoin Cash for $2 and pay $0.002 in fees.

In 2021, we observed how the market was reacting.

Bitcoin Cash was used more than BTC for two months with the rise of non-custodial internet platforms like noise.cash and read.cash utilizing the true power of cryptocurrency.

“The value of a network is proportional to the square of the number of connected users of the system (n2).”

- Metcalfe’s law ( Wikipedia)

In this 2021 chart from “ coin dance,” we watch how Bitcoin Cash transactions surpassed BTC transactions in April-May 2021.

Judging by this the value of Bitcoin Cash is currently below the market price and if this trends continues and Bitcoin Cash keeps the adoption levels high, we should be expecting the market price to follow. (quote from 2021)

The price of Bitcoin Cash followed the increase of the network effect.

Daily transactions of Bitcoin Cash decreased since 2021, and so did the price.

Yet, the message here is clear:

The value of a network is in direct proportion to the network effect.

We have the physical world and the digital realm (the internet) to find use cases and provide a valuable money option to consumers.

The more users of Bitcoin Cash, the more transactions are recorded on the blockchain, the better the price will be.

Closing Thoughts

“Cecil Graham: What is a cynic? Lord Darlington: A man who knows the price of everything, and the value of nothing. Cecil Graham: And a sentimentalist, my dear Darlington, is a man who sees an absurd value in everything and doesn’t know the market price of any single thing.”

- Oscar Wilde ( goodreads)

Today we know the price of everything but the value of nothing. With time, it will become clear if the market should value Bitcoin Cash as low as today.

Social media like Twitter are still suppressing Bitcoin Cash news and limiting exposure to BCH-related tweets. Similar is the field of crypto-news websites that, until recently, disregarded progress, developments, and adoption of Bitcoin Cash.

Yet, the main factor that drives the price is the network effect, the rise of transactions, and the use of cryptocurrency for its purposes.

While the market collapse of 2022 severely impacted the price of BCH, the cryptocurrency made a solid point in 2021. Bitcoin Cash works, scales, and presents the capabilities of a payments network capable of positively disrupting commerce (both online and physical).

“In order to be a very successful cryptocurrency you need to provide fast and cheap transactions, there’s no way around that.

It’s nice to be a store of value, but if you really want to succeed in this game, you need to be THE electronic cash.”

- Kim Dotcom

Cover Picture (background): by “TheDigitalArtist” on Pixabay

Content like images published in this article is used for research and educational purposes and falls the guidelines of fair use. No copyright infringement intended. However, If you are, or represent, the copyright owner of images used in this article, and have an issue with the use of said material, please notify me.

Also Read:

Platforms:

● read.cash ● noise.cash ● noise.app ● Medium ● Hive ● Steemit ●Vocal ● Minds ● Publish0x ● Twitter ● CashRain

Also visit my second Medium profile: Ex Cathedra and delve into the unknown!

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Originally published at https://read.cash in 2021. Rewritten and republished for Medium.

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