ETC Group, an ETF issuer company, released a report last month about the evolution of Bitcoin Cash in the years after the hard fork that created it. While the company acknowledged the asset price is lagging compared to its older sibling, it praised the crypto on other aspects like development and actual usage. Bitcoin Cash has improved regarding these two metrics, likely helped by the inclusion in several important platforms such as Paypal.
Bitcoin Cash Examined by ETC Group
ETC Group, a financial services company based in London, has issued a report on Bitcoin Cash. The report, which touches on several important aspects of the cryptocurrency, establishes that Bitcoin Cash has experienced positive development when it comes to the actual usage of the currency. The report states:
Bitcoin Cash has retained its laser focus on facilitating easy, fast, everyday transactions. And this is starting to pay off. Daily active addresses, a proxy for daily active users, have continued to grow strongly in the past two years.
What’s interesting about this is that adoption has grown even when spot prices have not accompanied this growth. This suggests that usage, rather than speculation, is the driving force behind Bitcoin Cash adoption, something very different from other cryptocurrencies. However, the report does state that prices have stagnated when compared with other cryptos on the market.
Growth may also have been driven by the inclusion of Bitcoin Cash on the initial roster of Paypal’s supported cryptocurrencies in November 2020. This movement put the asset in the hands of people new to the crypto space, providing the option to invest in bitcoin cash to a wide market.
The report also states that development has been constant since the 2017 hard fork that gave birth to BCH. This development, according to ETC, is what differentiates Bitcoin Cash from other crypto networks like Litecoin, which has stopped the addition of new features for its targeted use case. The report stresses:
There are scores of other utility developments in play that are adding to its practicality, developing tools like smart contracts, prediction markets, and EVM-compatible content.
Smartbch just launched earlier this year, bringing smart contract capabilities and Ethereum-like decentralized finance apps to the chain. The nascent project still has a lot of room to grow, but constant development such as this seems to have been an influential factor in ETC Group’s assessment of the peer-to-peer electronic cash system.