Bitcoin Cash Crypto Review
Bitcoin Cash is a cryptocurrency that was created in 2017. It was developed from a fork of Bitcoin, and it increased the size of the blocks. For this reason, more transactions can be processed using BCH.
Towards the end of 2018, the cryptocurrency experienced another fork, and this resulted in the creation of Bitcoin Cash ABC and Bitcoin Cash S. Bitcoin Cash ABC is simply referred to as Bitcoin Cash since it uses the original client of the cryptocurrency.
Because of the high transaction speeds, BCH is mostly used to make payments and is rarely held as an investment.
How Does Bitcoin Cash BCH Work?
BCH works just like Bitcoin. New coins are developed through the proof of work system, where miners have to validate transactions on the Blockchain. Mining takes a lot of computer power, but miners are rewarded in new BCH after the transactions. To transact with Bitcoin Cash BCH, you will have to follow these steps:
- Create an account on a cryptocurrency exchange and verify your details
- Then buy BCH using cryptocurrencies or other fiat currencies
- Store the cryptocurrencies in your digital wallet and use them to make payments
- In order to spend your BCH, you can scan a QR code on a merchant’s website or add their wallet address
Although using cryptocurrency exchanges is the most convenient way of obtaining new BCH coins, it is not the only option available. You can also buy the coins directly from other people on the internet.
Another option is to buy the cryptocurrency using a crypto ATM. However, you should remember that ATM rates can be extremely high, and there are no guarantees that you will find a partner to trade with.
Bitcoin vs. Bitcoin Cash Differences Explained
There are lots of differences between Bitcoin and BCH. It is worth noting that the vision of the original creator of Bitcoin was for the cryptocurrency to work as a transactional currency.
However, because of the high transaction costs and slow speeds, the coin is now mostly used as an investment or store of value.
Bitcoin Cash BCH helps to solve this issue since it uses larger blocks of 32 MBs. In comparison, Bitcoin uses blocks of 1 MB, and it is only able to process seven transactions per second.
This was okay when Bitcoin was used by a small number of people, but as the network became more popular, scalability became a major issue. With Bitcoin Cash BCH, 200 transactions can be processed in a second, but on average, the network processes 116 transactions in a second.
With an increased block size, the network has to be less decentralized as it requires more processing power for the nodes to support the blockchain network.
The result is that the level of public trust in Bitcoin Cash BCH is fairly low when compared to Bitcoin. It is worth noting that the supply of BCash is limited to 21 million, and this is the same limit applied to Bitcoin.
Does Bitcoin Affect the Price of BCash?
Although these two cryptocurrencies are not directly related, their prices generally go up together. This isn’t because of anything technical.
The price increase usually results from big investors who want to diversify their investment portfolio from Bitcoin.
Since BCash is among the bigger cryptocurrencies, it is a natural choice for investors who want to diversify their investments. It is worth noting that most of the top cryptocurrencies usually follow the same trends in price increases and decreases.
Should I Buy BCash?
If you want to invest in cryptocurrencies, you should generally go for coins that have high market caps as these are less likely to lose value. At the moment, BCH is ranked as the 21st most popular cryptocurrency, and it has a market cap of about $11.1 billion.
This makes it a large-cap asset, which means it is a safe investment. One BCH currently has a value of $588.75, and this has been going up consistently.
One reason why investors have developed an interest in this altcoin is that it is backed by a group of talented developers.
These developers solve any emerging issues in the altcoin quickly, and this keeps the coin usable for day-to-day transactions.
What is BCash Used for?
BCash was developed to be used for regular day-to-day transactions. With short transaction periods and low fees, people have been able to use it to pay for goods and services online.
The altcoin is also used to tip online content creators and app users. The online gambling industry has adopted lots of cryptocurrencies, including BCash.
Therefore, if you don’t like exposing your credit card information to online casinos, you will have the option of paying using BCH. As long as you have a smartphone or computer, you can send or receive payments using Bitcoin Cash.
What Are the Benefits of Investing in BCash?
BCH offers many benefits to investors, and these are listed below:
- The network is decentralized, and this makes it immune to political attacks.
- The cryptocurrency is scalable, so it can be used by lots of people at the same time. The high level of scalability also means that it is likely to be adopted by more people in the future.
- Transacting on the BCH network is extremely cheap, especially when compared to Bitcoin.
- It is extremely popular and is highly likely to keep going up in value.
- It can be obtained from lots of cryptocurrency exchanges.
What Are the Disadvantages of Bitcoin Cash?
Like all other investment options, this one has a few disadvantages. Here are some of these issues:
- The adoption rate of BCH has been low so far, and this has prevented the coin from going up in value.
- BCH has lower liquidity since fewer people are willing to buy it.
- The use of the name ‘Bitcoin’ has been detrimental to the brand since investors have a hard time finding useful information on the cryptocurrency.
- Mining BCH is less profitable than mining Bitcoin, and the two cryptocurrencies have the same mining procedures. Therefore, more people prefer mining Bitcoin instead of BCH.
Buy and Sell BCH with XOSignals
BCH is among the most valuable cryptocurrencies, and it currently ranks at the 21st position in the list of valuable cryptocurrencies. As noted in this BTCH Crypto review, this altcoin solves key issues in Bitcoin, including transaction speeds and fees.
This has made it extremely useful for day-to-day transactions. The coin is similar to Bitcoin in many ways, including the fact that it uses the proof of work mining system. Lots of crypto exchanges allow investors and traders to buy and sell BCH, so you shouldn’t have a hard time trading this altcoin.
If you are interested in trading BCH, you should sign up at XOSignals for free trading signals.
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