Recently, several reports have shown that the fourth largest cryptocurrency in the world by market cap, Bitcoin Cash (BCH), has a low commercial use, bearing in mind that 56% of its total supply is operated by 67 individual wallets.
Several reports have disclosed that Bitcoin Cash has a low commercial use. Besides the fact that its total supply is controlled by 67 crypto wallets, the coin has registered a decrease of 87% from its highest market capitalization value.
Bitcoin Cash has lately celebrated its one-year anniversary since it has distanced itself from the Bitcoin Core blockchain. Even if it is a forked coin, investors continue to consider BCH the ‘true Bitcoin.’
Bitcoin adopter Roger Ver, stated in a phone interview that:
“That’s what actually gives [bitcoin cash] its underlying value, that you can use it in commerce to pay for things. Whereas, a lot of these other tokens out there just kind of turn into speculative assets that don’t actually have any utility.”
However, it seems that these statements contradict the current market. Chainalysis senior economist Kim Grauer spoke in an interview for Bloomberg that BCH actually has a high use as a payment option. She identified that:
“Bitcoin Cash payments slumped to $3.7 million in May from a high of $10.5 million in March. Bitcoin payments totaled $60 million in May, down from a peak of $412 million in September.”
Grauer assumes that the very fact that much of the BCH properties belong to individual wallets is the reason why Bitcoin Cash records a low adoption rate:
“About 56 percent of Bitcoin Cash is controlled by 67 wallets not located on exchanges. Of those, two wallets hold between 10,000 and 100,000 Bitcoin Cash. And chances are, the wealthiest holders are the ones sending a lot of the traffic to merchant services.”