BCH Bitcoin Cash

Use Cases of Bitcoin Cash

Bitcoin Cash is designed to be used as a peer-to-peer electronic cash system, offering several key benefits:

• Fast and Low-Cost Transactions: Bitcoin Cash has a larger block size than Bitcoin, allowing it to process more transactions per block and reducing transaction fees. This makes it ideal for everyday transactions, such as buying groceries or paying for services.

• Effective Medium of Exchange: Bitcoin Cash enables inexpensive transactions at high speeds, making it suitable for remittances, cross-border trades, and microtransactions like tipping content creators.

• Long-Term Store of Value: Bitcoin Cash has a capped supply of 21 million, similar to Bitcoin, which helps maintain its value over time. The rate at which new coins are added decreases every four years through a process called halving.

• Economic Freedom: Bitcoin Cash provides an alternative form of money that gives users economic freedom and protection against censorship, monetary confiscation, and devaluation.

• Smart Contracts and Applications: Bitcoin Cash supports smart contracts and applications, including those that can be used for various financial services and decentralized finance (DeFi) applications.

• Integration with Payment Platforms: Bitcoin Cash has been integrated into various payment platforms, such as PayPal and Venmo, enhancing its utility for everyday transactions.

Advantages of Bitcoin Cash

• Increased Transaction Capacity: Bitcoin Cash has a larger block size (32 MB) compared to Bitcoin (1 MB), allowing it to process more transactions per block. This results in faster transaction times and lower fees.
• Lower Transaction Fees: The increased block size leads to lower transaction fees, making Bitcoin Cash more cost-effective for users, especially for small transactions.
• Faster Confirmation Times: Bitcoin Cash transactions are confirmed faster than those on the Bitcoin network, typically within 10 minutes, making it suitable for real-time online payments and point-of-sale transactions.
• Improved Scalability: The larger block size and higher throughput capabilities provide room for further adoption and better potential to scale on-chain as usage grows.
• Broader Accessibility: Lower fees and faster speeds, coupled with improved compatibility for merchants, enhance accessibility for more users globally to utilize Bitcoin Cash for digital payments or as a store of value.

Disadvantages of Bitcoin Cash

• Lower Adoption Rate: Bitcoin Cash has a lower adoption rate compared to Bitcoin, making it more challenging to find merchants, online platforms, or physical stores that accept it as a form of payment.
• Less Infrastructure: The ecosystem surrounding Bitcoin Cash is less developed compared to Bitcoin, with fewer crypto wallet options, fewer cryptocurrency exchanges that support BCH trading, and a smaller range of financial services.
• Lower Liquidity: Bitcoin Cash has less liquidity compared to Bitcoin, meaning there are fewer exchanges where BCH can be bought or sold quickly without impacting the BCH market price.
• Centralization Concerns: The larger block size requires more computational power, which could lead to increased centralization of mining, making the blockchain more susceptible to manipulation and censorship.
• Weaker Security: The Bitcoin Cash network has a smaller number of blockchain nodes and miners compared to Bitcoin, which can lead to reduced security and increased vulnerability to hacks, such as a 51% attack.

Founders of Bitcoin Cash

Bitcoin Cash was founded by a group of miners and developers who were part of the Bitcoin community but disagreed with the scaling solutions proposed for Bitcoin. Key figures associated with the creation and promotion of Bitcoin Cash include:

• Haipo Yang: CEO of ViaBTC and one of the earliest investors in Bitcoin, who supervised the founding team of the Bitcoin Cash project.
• Roger Ver: Often referred to as "Bitcoin Jesus" for his early and outspoken support of Bitcoin. He did not create Bitcoin Cash but aligned with the project, believing it fulfilled the original purpose of Bitcoin as described in the Bitcoin White Paper by Satoshi Nakamoto.
• Jihan Wu: Another prominent figure who supported the creation of Bitcoin Cash, advocating for larger block sizes to increase transaction speeds and lower fees.

These individuals, along with other developers, played crucial roles in the hard fork that led to the creation of Bitcoin Cash in 2017.

Investors in Bitcoin Cash

Bitcoin Cash has a diverse range of investors, including:

• Individual Investors: Many individuals hold Bitcoin Cash for various reasons, such as its potential for long-term growth, its use as a payment method, and its relatively low transaction fees compared to Bitcoin.
• Large Holders: The top 10 Bitcoin Cash holders control approximately 11.19% of BCH coins, while the top 100 holders control about 28.4% of the supply. This indicates a significant concentration of ownership among a few large investors.
• Cryptocurrency Exchanges: Major exchanges like Huobi Global and Kraken also hold significant amounts of Bitcoin Cash, with Huobi holding 0.88% and Kraken holding 0.29% of the BCH supply.
• Institutional Investors: Some institutional investors, such as those participating in the Grayscale Bitcoin Cash Trust, also invest in Bitcoin Cash. This trust allows accredited investors to gain exposure to BCH in the form of a security, avoiding the challenges of buying, storing, and safekeeping BCH directly.

Investment Potential

Bitcoin Cash is considered a promising investment by many analysts due to its potential for growth and adoption. Key factors include:

• Adoption and Use Cases: Bitcoin Cash has a strong focus on being a practical, fast, and low-cost payment method, which could lead to increased adoption and use cases.
• Technical Developments: Continuous improvements and upgrades in the Bitcoin Cash ecosystem are expected to enhance its performance and scalability.
• Market Sentiment: The overall sentiment around Bitcoin Cash is bullish, indicating a positive outlook for its future performance.

Long-Term Projections

Analysts predict significant growth for Bitcoin Cash in the coming years:

• 2024-2025: Expected to see steady growth with potential highs reaching around $555 to $800.
• 2026-2030: Projections suggest that Bitcoin Cash could reach $1,373 to $2,500 by 2030, with some predictions even suggesting higher values by 2040.

Key Considerations

When evaluating Bitcoin Cash as an investment, consider:

• Market Trends: The cryptocurrency market is known for its volatility, and trends can change rapidly.
• Adoption and Regulatory Developments: The success of Bitcoin Cash will depend on its ability to gain widespread adoption and navigate regulatory challenges.
• Technological Advancements: Continuous technological improvements are crucial for Bitcoin Cash to maintain its competitive edge.

Is Bitcoin Cash Halal?

Yes, Bitcoin Cash is considered halal by several Islamic finance experts and organizations. Here are some key points:

Legitimacy and Shariah Compliance

• Project Legitimacy: Bitcoin Cash was started by a group of core Bitcoin developers in 2017, giving it a legitimate foundation.
• Shariah Compliance: It aligns with Islamic values and does not involve interest (riba), making it compliant with Shariah principles.

Financial Screening

• No Equity Backing: Bitcoin Cash is not backed by any equity, so it does not require financial screening for debt-to-income ratios.

Token Use

• Native Currency: Bitcoin Cash is used as a native currency for peer-to-peer payments and storing value, which is acceptable under Islamic finance.

Staking and Proof of Work

• Halal Staking: The proof of work system used by Bitcoin Cash is considered halal because it does not involve interest or gambling.

Community Views

• Islamic Finance Guru (IFG): IFG believes Bitcoin Cash is halal based on its Shariah compliance screening.
• Crypto Halal Office: This office also considers Bitcoin Cash halal based on its Shariah compliance screening.
• Marhaba DiFi and Sharlife: Both organizations agree that Bitcoin Cash is halal.