What You Need to Know About Bitcoin Cash
Although bitcoin has been on a bullish trend since the beginning of 2018, there was a brief period at the end of August when its price dropped significantly. On Aug. 20, the digital currency shed around 25 percent of its value — falling from about $6,400 to just above $4,000 in less than 24 hours. This sudden drop caused many investors to panic and sell their holdings. As a result, Bitcoin Cash — an altcoin that split from bitcoin back in August 2017 — surged in value. In fact, on the day following this crash, Bitcoin Cash jumped by more than 80 percent as traders who missed out on the initial boom of BCH began to invest in it once again. That’s why we’ve put together this beginner’s guide to explain exactly what you need to know about Bitcoin Cash so that you can make informed investment decisions moving forward. What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that split from bitcoin back in August 2017. As a result, it also inherited the same blockchain network. However, the main difference between the two is that bitcoin is designed to process a small number of transactions per second, whereas Bitcoin Cash can process a much larger number. Because of this, Bitcoin Cash is often referred to as a “stronger” version of bitcoin. Bitcoin Cash is a peer-to-peer electronic cash system. It is fully decentralized, meaning it isn’t controlled by a central authority. Instead, the network itself is managed by the people who use it. The network is used to send money to each other without the need for a financial institution. The most important thing to know about Bitcoin Cash is that it has a bigger block size limit than Bitcoin. The block size refers to the amount of data that can be processed by the blockchain in each “block”. So, Bitcoin Cash can process 8 times more transactions than Bitcoin. This means that BCH can process more transactions, cheaper and faster than BTC.
How Is Bitcoin Cash Different From Bitcoin?
As we’ve already discussed, the main difference between Bitcoin Cash and bitcoin is the block size. While bitcoin’s block size is capped at 1MB, Bitcoin Cash’s block size is not. Instead, it’s set at a whopping 8MB. This larger block size means that Bitcoin Cash can process more transactions than bitcoin. Another key difference between the two is how they reward users for mining. Bitcoin rewards miners with 12.5 bitcoins per block. As a result, the number of bitcoins in circulation will exceed the 21 million mark in 2140. However, Bitcoin Cash rewards miners with an 8.8 BCH per block. As a result, there will be a total of 1,001,800 BCH in circulation. This is far less than bitcoin’s 21 million supply. Why Did Bitcoin Cash Crash?
It’s important to note that the above-mentioned crash only affected bitcoin, not Bitcoin Cash. During this crash, many investors were panicking and selling their bitcoin holdings. As a result, the price of bitcoin fell from about $6,400 to just above $4,000 in less than 24 hours. This sudden drop caused many investors to panic and sell their holdings. As a result, the price of BCH rose to $4,500 and above as traders who missed out on the initial boom of BCH began to invest in it once again.
Is Bitcoin Cash Dead?
The short answer is no. The long answer is also no. Even though Bitcoin Cash’s price surge lifted it out of the ashes, it still has a long way to go before it regains its former glory. However, there are a few reasons to believe that BCH may rise again in the near future. For example, the upcoming November fork that split the network in 2017. The network will undergo another hard fork on Nov. 15, 2019. This fork will result in the addition of two new features. It will add privacy features and replay protection. The privacy features will enable users to create one-time use addresses. The replay protection will be used to safeguard against transaction replays. Because Bitcoin Cash is the only major cryptocurrency that is currently splitting, it’s expected to benefit from the upcoming fork.
Is Bitcoin Cash Still Worth Investing In?
Yes, although it’s important to note that Bitcoin Cash is more of a short-term investment rather than a long-term investment. Remember, the short-term trend is unpredictable. So, you may make a lot of money by investing in BCH for a few days — or you may lose that money just as quickly. That said, there are a few reasons to believe that BCH may rise again in the near future. For example, the upcoming November fork that split the network in 2017. The network will undergo another hard fork on Nov. 15, 2019. This fork will result in the addition of two new features. It will add privacy features and replay protection. The privacy features will enable users to create one-time use addresses. The replay protection will be used to safeguard against transaction replays.Bottom line
In the short term, Bitcoin Cash is definitely worth investing in. It has the potential to rise in value in the next few months before it plummets again. But if you’re looking for a long-term investment, you may want to steer clear of BCH. After all, there’s always a chance that it may never regain its former glory.
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