Recently, Kim Dotcom (internet entrepreneur well known for his quarrel with the US government over his past venture, Megaupload) tweeted he believes Bitcoin Cash is currently undervalued. To make his point, he even built a website (https://whybitcoincash.com/) where he explains why he thinks BCH has huge upside potential.
His arguments have actually been known for a while: BCH has a similar infrastructure to Bitcoin, but it is faster and cheaper to exchange. That makes it a good candidate to become a decentralized, peer-to-peer digital equivalent of cash.
The worldwide market for cash is worth around 100 trillion dollars - he says, ten times the gold market (which is what usually Bitcoin is compared to, as it is used more and more as a store of value rather than an actual currency). At the same time, Bitcoin Cash shares the same supply structure of Bitcoin: halving every four years until it reaches 21 million total.
That should already ring a bell: the market it addresses is 10 times bigger, supply is the same. Of course, the cash market is not a winner-take-all one like the gold market has been for a long time. Still, should BCH eat only 1% of it, its capitalization would have to grow from the current 13 billion to 1 trillion dollars. That’s some 76x growth. Should it make it to 0.1% of that market, it would still grow 7.6 times.
Does this whole reasoning make sense to you people? Can someone point out any fallacies in it? Does anyone have access to a thorough analysis of the market for Bitcoin Cash? Thanks!