Bitcoin Cash (BCH) | Buy & Sell Bitcoin Cash with EverFX
Bitcoin Cash- The Future of Cryptocurrency
Doubts revolving on bitcoin’s ability to scale effectively have been in existence since its creation. It was from such uncertainties that a new cryptocurrency was generated. This article will expound the question, what is bitcoin cash BCH and determine if it is a worthy investment.
What Is BitcoinCash?
BCH was created in August 2017 from a fork of cryptocurrency called bitcoin. It allowed more transactions to be processed because it increased the size of the blocks. In November 2018, it underwent another fork that split the cryptocurrency into bitcoin cash-Satoshi Vision and Bitcoin ABC. To fully grasp the concept behind it, the first task is to understand why BCC bitcoin was designed. The creator originally designed it as a peer to peer cryptocurrency which could be used in day to day transactions.
Notably, any transaction that involves bitcoin as a virtual currency is verified and stored in a digital ledger called a blockchain. This technology of ledger recording is important because it’s hard to manipulate any transaction. However, after a few years, its increasing popularity caused its prices to surge. Therefore, instead of becoming a currency, it turned into an investment. The bitcoin blockchain became susceptible to various issues because it could not hold the increased number of transactions. It had a block size limitation of 1MB which slowed the process because the transactions lined up waiting for confirmation. Therefore it was for such challenges that BCH was created.
What is the difference between Bitcoin and Bitcoin Cash?
• First, the two cryptocurrencies were created by dissimilar people at a different time. Satoshi Nakamoto initially described bitcoin whitepaper in 2008 while BCH was created in 2017 by various developers and miners who were worried that its ability would dwindle with its growing popularity. Therefore, it was forked to create bitcoin cash BCH.
• As noted earlier, bitcoin has a block size limit of 1MB; therefore, the process of transaction is slow. Its transaction would range between 1000 and 1500 per bitcoin block. Hence the developers of BTC ABC improved on the original vision of the white paper and increase the block size to the range at 8MB-32MB, thus creating an effective lightning network. As a result, during a stress test, in 2018, the bitcoin cash transactions rose to 25,000 for each block. Increased block reward allowed BCH to be used as a medium for everyday transactions.
• The transaction fee in BCH transaction is cheaper compared to bitcoin. Research shows that the transfer fee on the latter would go up to $25 on each BTC fee while using BCH it cost around $1.
• Though both cryptocurrencies use Proof of Work ideology for new coins mining, the war of bitcoin vs bitcoin cash is clearly defined by the trust in which investors put in the digital cash. As compared to BTC investors have less confidence in BCH because the market infiltration and the acceptance rate was shallow. Experts have attributed this to the fact that BCH is relatively new.
Is BitcoinCash a good investment?
Since its conception, the relatively new cryptocurrency has been controversial because a few hours after its release it had a market cap of more than $7 billion. Experts even speculated that it would ultimately replace BTC hence leaving many people wondering whether it was a good investment. Research shows that it would be wise to invest in this cryptocurrency as it is fast-growing and its developer has unique plans for its future. Similarly, it is considered secure just like bitcoin since it has never been hacked since its creation. Besides, Bitcoin cash Network is regularly upgraded to prevent loopholes.
The price of bitcoin cash as depicted on the BCH chart, as per august 2020 was $297.25 while its market capitalization at the time was over $5 million. The statistics show more people are investing in bitcoin cash USD hence the high returns. However, the Bitcoin November fork, which caused a social media upstir, will interfere with this progress. Despite that, there are numerous ways through which it can be used to our advantage, but first, know how to get bitcoin cash. Consequently, to invest in BCH, shares, or tokens need to be purchased then articulate the investment plan and reap the benefits.
What can I do with Bitcoin Cash?
BCH is one of the easiest digital currencies to buy because there are numerous ways of putting it to use. First, it can be traded with various exchanges mostly through Coinbase BCH. Such platforms make selling, buying and storing of cryptocurrency easier. Secondly, investment in BCH can be accomplished through short term trading, which allows us to sell and buy digital currency through shot periods. This way, profit is made when the prices increase or decrease. Alternatively, buying tokens at a low price and hold them until the price increases to a desired point of sale; it is another form of investment. Purchasing and holding tokens is a long term investment that requires time to manifest and ripen.
Additionally, it can be used to purchase various items. For instance, there are gaming services that allow digital money in particular BCH as a method of payment. Some websites offer e-cards in different sets such as food, accessories, entertainment and clothing through virtual money. Notably, travelling across the world is possible with BCH. There are travel agencies as well as restaurants that accept cryptocurrency transactions. Subsequently, shopping has been made easier by cryptocurrency because other than using credit cards, and there is an alternative payment process that allows us to continue shopping even after our cards are maxed out. Perhaps this specific information or tip should be shared on Facebook.
Although BCH is relatively new, it is quickly gaining popularity hence increasing its value. It was forked from the original concept of bitcoin BTC to fix its shortcomings. Therefore, there are differences between BTC and BCH. The former is secure, fast and cheap to use. Use it by investing it or using it as a method of transaction. Cryptocurrency is here to stay; hence it would be best to forge on together.
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This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
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