Portfolio Update: Last Call For BCH?
It's been a while since I've written a portfolio update, so I figured it was time for a quick update on what's been going on. I've made some changes to my portfolio recently, and one of the biggest has been selling off my Bitcoin Cash (BCH). For those who don't know, BCH is a fork of Bitcoin that came about in August 2017. At the time, I was bullish on the fork and thought it had potential. However, after nearly two years, it's become clear to me that BCH is not going to be the successful coin I thought it could be. Here's a look at why I sold my BCH and what I'm doing with my portfolio now.
Bitcoin Cash (BCH) and the Crypto Market
Bitcoin Cash (BCH) has been on a tear lately, gaining over 20% in the last week alone. This comes as the wider crypto market has seen a significant rally, with Bitcoin (BTC) leading the way.
This surge in BCH's price has led many to believe that this could be the last chance to buy in before it reaches new all-time highs. With Bitcoin's price seemingly unstoppable at the moment, it's not hard to see why BCH could follow suit.
If you're looking to add some cryptocurrency exposure to your portfolio, now might be the time to do so with BCH. However, as always, investing in any asset comes with risks and you should never invest more than you can afford to lose.
The fork that created BCH
Bitcoin Cash (BCH) was created on August 1, 2017, as a hard fork of the Bitcoin (BTC) blockchain. The fork occurred at block 478558 and was the result of a disagreement among BTC miners and developers over the implementation of Segregated Witness (SegWit).
SegWit is a software upgrade that allows for more efficient transaction processing on the BTC blockchain. However, some members of the BTC community felt that SegWit would centralize power within the BTC development team and make it more difficult for ordinary users to run full nodes, which are required to validate transactions on the network.
As a result, a group of miners and developers decided to create BCH as an alternative to BTC. BCH maintains the same transaction history as BTC up until the fork, but diverges from BTC afterwards. For example, BCH implemented larger block sizes than BTC, which allows for more transactions to be processed per block.
BCH also restored some features that were originally part of Bitcoin but were removed in later upgrades, such as OP_CheckLockTimeVerify (CLTV). This allows for more flexible smart contracts on the BCH network.
Reasons to invest in BCH
1. BCH is a fork of BTC with improved features.
2. BCH has faster transactions and lower fees.
3. BCH is more decentralized than BTC.
4. BCH has a bright future with adoption by major companies like Square.
Reasons not to invest in BCH
1. BCH is a volatile investment. The price of BCH can go up or down rapidly, and it is often difficult to predict which way the market will move.
2. BCH is not yet widely accepted. While more and more businesses are beginning to accept BCH as payment, there are still many that do not. This means that you may have trouble finding places to spend your BCH, or may have to pay higher fees when you do.
3. The future of BCH is uncertain. Bitcoin Cash has only been around for a few years, and its long-term viability is still unknown. There is a risk that it could be replaced by another cryptocurrency in the future, or that its value could drop significantly.
4. You could lose money if you invest in BCH. As with any investment, there is always the potential for loss. If the price of BCH falls, you could lose part or all of your investment