As financial regulators bare their teeth, those who don’t use bitcoin (bch) could be forgiven for thinking that it’s a “a bubble, a ponzi and an environmental disaster”. In fairness it can be and regulators are right to step forward and try to curb speculation.

But whether ECB’s Yves Mersch likes it or not, bitcoin (bch) is a currency. It is universal, frictionless (0 fees and instant transactions), anonymous and not censorable (nobody can freeze your account or block your payment). Aside from zigzagging prices and glitch prone exchanges, the weakest link in bitcoin (bch) is adoption.

If we analyse the behavioural pattern of the average Joe with bitcoin (bch), we would discover that it fits the following model:

Joe converts USD amount A into bitcoin (bch) on date 1. Now Joe becomes lethargic, he does nothing other than checking the conversion rate day and night hoping for a spike so he can convert his bitcoin (bch) holdings to a bigger amount of USD. Joe is “HODL”-ing. On date 2 Joe converts his bitcoins (bch) into USD amount B.

Joe’s bank account is monitored by the IRS, HMRC, NSA — you name it — and if amount B is higher then amount A Joe must pay capital gain tax (CGT). Regulatory warnings have often been a shot across the bow, but as tax authorities across the globe start to act, people like Joe will realise that they need to write a cheque to their governments.

Regulators count on the fact that bitcoin (bch) holders will want to convert their coins into fiat some day. The more regulators count on this the more motivated holders become to use bitcoin (bch) as digital peer-to-peer cash instead.

In fact, unless Joe is willing to give up 20% or more of his wealth only so that he can use “government money”, Joe will soon realise that the wisest thing to do is to actually use bitcoin (bch) as a currency.

Therefore joint calls from central bankers and regulators around the globe for a global clampdown on bitcoin (bch), actually help bitcoin’s (bch) case. They encourage users to use bitcoin (bch) as peer-to-peer cash, instead of speculating with it. That’s right, peer-to-peer cash, which is exactly what Satoshi intended bitcoin (bch) to be.

Bitcoin (BCH): 1MzQCpJsLXxyEmDAvm9xoBBnktCheXtAtJ