Bitcoin Cash BCH is a digital currency created by the Bitcoin project that should not be confused with the original Bitcoin.
#1 Increasing Transactions Per Block
With Bitcoin Cash (BCH), transactions are being processed at twice the speed of Bitcoin (BTC).
The recently relaunched Bitcoin Cash project was not able to hit this target on its first release as they found themselves needing to increase the size of the blockchain which came with its own problems.
Many Bitcoin users were dissatisfied with the delays, including Andreas.
Andresen, one of Bitcoin’s core developers, said on his blog: “With Bitcoin Cash (BCH), the increase in transaction processing time for block generation is less. There are two reasons for this:
First, we want to move to a more general form of hashing called big-input hashing. Bitcoin was initially used to establish trust in a currency with very tight regulation, so the original block size was very small and only allowed around 100 transactions per block. Bitcoin Cash uses general-purpose hashing in the background, to prevent that.
Second, Bitcoin Cash adds an additional layer of anti-fraud protection, allowing us to create blocks of up to 8 MB which can include more than 1,000 transactions (Bitcoin can only accept up to 1,000 transactions per block).
#2 Bitcoin Cash Has a Different Time Limit
On May 29, 2017, Bitcoin Cash raised the number of transactions per block.
It was only a few months later that Bitcoin Cash was not able to make it to the 1,000 transactions per block threshold.
Bitcoin Cash seems to have fallen behind as it must reach that threshold before August 1, 2017, to get a temporary boost of the transaction speed.
Some investors would be worried about that lag, but Bitcoin Cash has gained momentum and cash from investors.
#3 Bitcoin Cash Has a Different Bitcoin Code
Bitcoin Cash has a different code, therefore, if you had a Bitcoin wallet that used the original Bitcoin code, your Bitcoin cash should not be moved, for example to an exchange.
#4 Bitcoin Cash Could Be a Better Investment
Bitcoin Cash has had a huge jump in its value since the fork. So if you bought Bitcoin, you may be getting a good price for your investment now.
However, the expected value for Bitcoin Cash seems to have slipped. So depending on your circumstances, this may not be the best time to invest in Bitcoin Cash.
The uncertainty with Bitcoin Cash and the huge gap between the bitcoin prices for Bitcoin Cash and Bitcoin may still cause a slowdown in investment.
The recent hike in Bitcoin Cash value was due to the recent drop in the bitcoin value.
Many believe that Bitcoin Cash could have a better return. It could prove to be a better investment.
Given the uncertainty, it would be safer to wait for more information before you invest in Bitcoin Cash or buy it for your investment portfolio.
#5 Bitcoin Cash Has Now Entered Consumer Advertising
In recent days, a few Bitcoin Cash promotional ads have appeared in Google search results, showing that this brand has entered consumer advertising.
There is no word on whether these ads are meant for consumers or investors. It is only speculation.
If Bitcoin Cash becomes popular with consumers, it would become a very lucrative investment as it will open new markets to investment.
#6 Bitcoin Cash May Cause Issues
The problem with Bitcoin Cash is its failure to make the blockchain scalable. It takes so long to get a transaction processed, and it could be disastrous if no one uses Bitcoin Cash.
Bitcoin is not scaling and this could result in large block sizes as large as 1 million or more transactions taking so long to be processed.
The fact that Bitcoin Cash is still small could be the cause of the issues as there is no easy way to scale it.
The Bitcoin Cash blockchain has a maximum block size of 8 MB. Bitcoin has the option of increasing the limit.
Increasing the bitcoin block size seems to be the ideal solution to the scaling issues.
Bitcoin Cash may be a short-term problem, but it could turn out to be an expensive one in the longer term.
#7 Bitcoin Cash's Future Is Uncertain
Bitcoin Cash has seen a large increase in its value. That is one reason why investors might be interested to invest in this brand.
Yet there is no guarantee that this brand will remain popular for long.
So far, Bitcoin Cash has not even reached the 1,000 transactions per block mark. Also, it has failed to make the blockchain scalable, meaning that only Bitcoin Cash has issues related to scalability.
A higher investment in Bitcoin Cash could be riskier. There is also no guarantee of a high return.
Expect the market to start adjusting the price for Bitcoin Cash as its strengths start to be visible.
#8 Bitcoin Cash Has More Potential For Use
So far, Bitcoin Cash has only been used to buy Bitcoin.
Yet, this has started to change recently. Investors may start to adopt Bitcoin Cash for other use cases as well.
For instance, Bitcoin Cash could be a good way to pay for goods and services and also store cash for transactions.
Bitcoin Cash could also be an excellent choice for small traders as there is no cash deposit fee and no fee for transacting.
So there is a possibility of this brand being used for other use cases.
#9 Bitcoin Cash Has Now Entered Public Financing
In recent days, Bitcoin Cash made the headlines again, as it entered public financing.
Its public funding was endorsed by Richard Branson.
Branson was listed as an investor for Bitcoin Cash in a public filing to the SEC.
#10 Bitcoin Cash Has Taken a Big Leap in Value
The dramatic price increase of Bitcoin Cash could be due to a spike in Bitcoin's value.
Bitcoin is currently trading close to $4,500, while Bitcoin Cash is already at more than $400.
A big increase in bitcoin's value is unlikely as it has already seen an increase of more than 100% in price this year.
Thus, it is likely that bitcoin cash will stick around in the lower half of its current price. It is possible that the price could increase as it becomes more popular and mainstream
Conclusion
Bitcoin cash seems to have the potential to become a very lucrative brand for investors as it is still small and it has only been around for a short time.
Its future has a high risk, but also a high reward, as it could be used in many ways. It could also stay low, due to the inability to scale its blockchain.
That is the reason why investors should buy Bitcoin Cash now and wait for the market to adjust the price for the brand before they invest.