Bitcoin cash was created in 2017 in response to the scaling issues that were plaguing Bitcoin at the time. Since then, Bitcoin Cash has become its own cryptocurrency with its own community and ecosystem. But is it any good? Is it worth owning Bitcoin cash, and what can you do with it? Is it headed for a bright future?
What is Bitcoin Cash?
Bitcoin Cash (BCH) is a cryptocurrency created in 2017. BCH is different from Bitcoin (BTC) in that it has an increased block size limit of 8Mb as opposed to BTC’s 1Mb limit. This allows for more transactions to be processed per second, and therefore, faster transaction times.
Bitcoin Cash also has some other differences from Bitcoin, such as different hashing algorithms and different reward schedules for miners. Overall, however, Bitcoin Cash is very similar to Bitcoin and can be used in many of the same ways.
Should You Invest in Bitcoin Cash?
Now that you know what bitcoin cash is, you're probably wondering if it's a good investment. Here are a few things to consider before making your decision:
- What are your investment goals?
- How much risk are you willing to take?
- What other investments do you have in your portfolio?
- Do you understand how cryptocurrency works?
- Are you comfortable with the volatility of the cryptocurrency market?
How to use Bitcoin Cash
To use BCH, you will need to set up a digital wallet. We recommend using the Blockchain Wallet, which is an online and mobile wallet that supports BCH. Once you have set up your wallet, you can find someone selling BCH near you using LocalBitcoins or any other peer-to-peer exchange. You can also buy BCH directly from exchanges like Coinbase or Kraken.
Once you have obtained some BCH, you can use it to make purchases online or in person at businesses that accept cryptocurrency. You can also hold onto your BCH as an investment since its price has been on the rise since its inception.
Pros and Cons of Bitcoin Cash
Here are some of the advantages and disadvantages of owning Bitcoin Cash:
- Bitcoin Cash transactions are cheaper than Bitcoin transactions, due to the lower fees.
- The improved transaction processing speed makes Bitcoin Cash a good choice for payments and micropayments.
- Bitcoin Cash is less centralized than Bitcoin, which makes it more resistant to government interference.
- Different mining algorithms: BTC uses the SHA-256 hashing algorithm, while BCH uses the Equihash algorithm. This makes it easier for people with specialized mining equipment to mine BCH.
- Replay protection: BCH has replay protection built into its code, which prevents transaction replay on the BCH chain when BTC is updated with new features (such as SegWit).
- Since Bitcoin Cash is a variant of Bitcoin, it has all of the same features and benefits as Bitcoin.
- Improved scalability due to larger block size.
- Lower market cap and liquidity: There is less demand for BCH, and it may be harder to find buyers when you want to sell. The lack of liquidity can also make prices more volatile.
- Less support from exchanges and businesses: Many major exchanges and businesses have not yet started supporting Bitcoin Cash, which means that it can be difficult to find places to spend your BCH. As adoption increases, this should become less of a problem.
- BCH was created as a hard fork of BTC, which means that there is a risk of further forks in the future. This could lead to even more confusion and fragmentation in the market, which could discourage people from using any form of cryptocurrency.
How to Invest in Bitcoin Cash
Investing in Bitcoin Cash is similar to investing in any other cryptocurrency. The first step is to set up a wallet to store your Bitcoin Cash. There are many different types of wallets available, so choose one that suits your needs. Once you have a wallet set up, you can buy Bitcoin Cash on an exchange such as Coinbase or Binance.
The price of Bitcoin Cash fluctuates just like any other cryptocurrency, so it is important to keep an eye on the market before making any investment decisions. When buying Bitcoin Cash, always be sure to do your own research and never invest more than you can afford to lose.
What Can You Buy with Bitcoin Cash?
Bitcoin Cash can be used to purchase a variety of goods and services. Online retailers such as Overstock.com and Newegg accept Bitcoin Cash as payment, and physical stores such as Bitcoin Superstore accept Bitcoin Cash as well. You can also use Bitcoin Cash to pay for online services such as VPN providers or web hosting.
Where to Store Bitcoin Cash
When it comes to Bitcoin Cash, there are a few different storage options available. One option is to store it on an exchange like Coinbase or Binance. However, this is not the most secure option as exchanges are often hacked. Another option is to store it in a software wallet like Electrum or Exodus. This is a more secure option, but you need to be careful as there have been cases of people losing their Bitcoins due to malware. The most secure option is to store your Bitcoin Cash in a hardware wallet like the Ledger Nano S or Trezor. Hardware wallets are offline and immune to hacking attempts.
Alternatives to Bitcoin Cash
There are a few alternatives to Bitcoin Cash that have emerged in recent years. These include Litecoin, Ethereum, and Zcash. Each of these alternative cryptocurrencies has its own set of pros and cons that make it unique.
Ethereum is a decentralized platform that runs smart contracts. A smart contract can be conceived of as an application that runs exactly as programmed without being influenced by any third party.
These properties have made Ethereum a popular choice for Initial Coin Offerings (ICOs). However, Ethereum's scalability issues have been well documented, and the network is still working on solutions to address them.
Litecoin shares many of the same features as Bitcoin, but with faster transaction times and lower fees. However, Litecoin's market cap is only a fraction of Bitcoin's, so it remains to be seen if it can truly compete in the long run.
Zcash is a privacy-focused cryptocurrency that offers users the option to shield their transactions from being seen on the blockchain. This allows for greater fungibility, meaning that each Zcash coin can be interchangeable with another without any loss of value.
While this privacy feature is highly desired by some users, it does come with the trade-off of slower transaction times and higher fees.
Bitcoin Cash is a cryptocurrency that has a lot of potentials. It is fast, cheap, and secure, making it a great option for businesses and individuals alike. While it is not yet as widely accepted as Bitcoin, it has the potential to grow and become one of the leading cryptocurrencies in the world.
Overall, though, Bitcoin Cash is a good option for those looking for an alternative to Bitcoin. If you are interested in investing in Bitcoin Cash, make sure there are some products that you can also make a purchase of so that you can get the most out of this powerful currency.