Ever since Bitcoin had an upgrade into Bitcoin Cash on 1st August 2017, I have been bullish for Bitcoin Cash’s long term future. As follows are my personal opinions on why I feel Bitcoin Cash is the future of digital cash over the legacy Bitcoin.
Better Security – Bitcoin has a vulnerability called RBF which increases the risk of double spending. Bitcoin Cash developers aim to make 0-confirmation transactions safe again so that anyone accepting Bitcoin Cash is much safer accepting payments without having to wait for multiple confirmations.
Improved Scalability – Bitcoin is limited to 1MB block size and even with Segwit activated, the capacity increase is only around 1.7x whereas the upgraded Bitcoin Cash blocks capacity is currently at 8x with no limitations. This means Bitcoin Cash can handle Visa/Mastercard transactions volume in the future with another upgrade.
Supply Scarcity – During the fork from Bitcoin, some Bitcoin Cash supply were removed from active circulation due to users unable to claim their Bitcoin Cash from unsupported exchanges and wallets among other reasons. This means each Bitcoin Cash is actually more scarce than the legacy Bitcoin.
Improved Confirmation Times – Due to the limited block size of Bitcoin, some users were made to wait days for their transactions to be confirmed. Contrast this to Bitcoin Cash where transactions may be accepted immediately with less risk and you can see why it makes sense to use Bitcoin Cash. In other words, if you are a shop owner and you just sold a cup of coffee and some sandwiches, and you accept the old legacy Bitcoin, you may have to wait hours for the transaction to be confirmed because the customer may use RBF to void the original payment. With Bitcoin Cash, your risk is minimized.
Low Fees – One of the advantages of using cryptocurrencies over traditional payment methods is the low fees. Due to the limited block size of Bitcoin, fees have reached as much as $70/transaction during peak period. On the other hand, I have never paid more than 1 penny/transaction during my entire time in using Bitcoin Cash. This makes using Bitcoin Cash ideal for merchants, businesses, companies and everyday usage. The industries that may be disrupted such as Remittances, Payment Gateways, etc are worth trillions of dollars and Bitcoin Cash is well positioned for use cases in these industries.
At the moment, the old legacy Bitcoin has network effects advantages just like how Friendster used to dominate the social networking space. Since Bitcoin Cash was only out for 2 months, it would remain to be seen how much time would be needed to play catch up. It took Facebook years to catch up to Friendster’s dominance back then and it may take Bitcoin Cash just as long to achieve the same.