Ethereum used to move a lot more value than Bitcoin Cash for much of 2017 and all of 2018.

This year, however, Bitcoin Cash has been dominating somewhat considerably, consistently moving more value than eth.

BCH, ETH, on-chain value transfers, Sep 2019

As you can see in blue, ethereum was by far more used than BCH. Now, although eth still does a lot more transactions than Bitcoin Cash, in value amount the later dominates quite a bit.

It does so not over just ethereum, but also litecoin and other blockchains except for bitcoin.

Crypto stats, September 2019

Ethereum is processing not far off from a million transactions a day, but the average transaction value is just $400. For Bitcoin Cash, the average is $12,500, a lot closer to bitcoin’s near $40,000.

Even dogecoin beats eth for the average transaction value, with it a bit difficult to make some sense of this.

One explanation may be that for eth you need on-chain transactions to connect with some dapps, giving them authorization to do certain things.

The amount of value transferred in such cases can be very small as you just need to connect, but BCH too has tokens running on top, memos, and all sorts. So you’d expect actual value transfers to counteract small transfers.

For eth it does look like it isn’t used as much for paying things or say in international transfers.

Where payments are concerned it may be because one of the biggest crypto processor, BitPay, only offers bitcoin and bitcoin cash.

Coinbase Merchants includes eth too, but they seem to be a lot smaller than BitPay which is focused solely on this commercial aspect of cryptocurrencies.

Another reason may be that in eth there isn’t much focus on spending it. They describe eth as gas, something to power the car, the car here being the smart contract dapp.

In BCH, one of the reasons for splitting from bitcoin was so that they can pay even for coffee with bitcoin cash.

They have the spend and replace attitude, as well as hodl, with cashers keen to not need fiat at all if necessary.

They’re a long way from that. Even in bitcoin, which is clearly far more used with tens of billions moving daily, relying on it only can be extremely difficult.

Yet that’s what the cashers dream, and in some places like Venezuela, they’re perhaps not too far from it.

While in ethereum the focus is a lot more on codable money, getting it to do things on dapps or perhaps on machines or tokens.

Eth moreover is going through a period of disillusionment as it tries to find its hardcore base. BCH had that too, but they’re a lot more ideological. They want an actual currency used as a currency controlled by the people with price more of a secondary factor.

That unshakable confidence for some of them has earned BCH the second position in one of the most important metric: just how much value is being moved and thus just how much is this being used.

It’s a proxy metric because arguably it can be gamed, but it is usually somewhat apparent when it is being played.

Specifically, the number of transactions at 50,000 appears ordinary. There is a lot more velocity in BCH with 12% of the market cap moved, compared to 7% for BTC and less than 2% for eth, but then that itself might suggest some higher level of usage.

What exactly it is being used for isn’t too clear, but some 100,000 merchants accept BCH for payments, with it probably growing.

They accept it because no chargebacks. It’s like being paid in cash. Almost no fees, and pretty much instant due to zero confirmed transactions.

From the consumer point of view, it could be a way of cashing out without fees, avoiding the hassle of converting to fiat, then bank account, then buying the lambo or some office furniture. You instead just send BCH and done.

Copyrights Trustnodes.com

Have You Paid or Received a Crypto Payment in the Last 30 Days? Yes (71%, 12 Votes)

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