Bitcoin has gained much notoriety as the world’s first widely accepted cryptocurrency. It has had its share of ups and downs, but ten years into its emergence continues to thrive. There have always been issues with Bitcoin that frustrate developers. One of these has been the problem of scaling. This led to differences among Bitcoin enthusiasts and much debate.
An attempt to address the scaling of Bitcoin occurred in August 2017 with something known as a hard fork. This created Bitcoin Cash, a new digital token that expands the size of a block of transactions on the blockchain. Those who support its creation also point to faster processing times and enhanced security as reasons why Bitcoin Cash may be a better form of cryptocurrency.
Same Blockchain, Different Characteristics
Bitcoin Cash is a cryptocurrency just like Bitcoin, and in fact belongs to the same blockchain. On August 1, 2017 there was an event called a hard fork which essentially split the Bitcoin blockchain in two. Those who held Bitcoin were given an equal amount of Bitcoin Cash tokens. There are a few characteristics that the two tokens share, but most of the focus has been on the difference in block sizes that each creates on the blockchain.
A block of transactions for traditional Bitcoin was limited to 1 MB. Bitcoin Cash increased the maximum size of a block to 8 MB. The desire to expand block sizes had long been expressed by those who felt the fees on the network were too high. This became an ongoing debate which reached a peak in July 2017 and culminated in the hard fork.
The advocates of Bitcoin Cash (BCH) celebrate the new token as the solution to every issue posed by the original Bitcoin (BTC). Some of those advocates include well-known investors in blockchain technology such as Roger Ver, the man many people call Bitcoin Jesus.
Roger Ver and Bitcoin Cash
Roger Ver is one of the luminaries in the Bitcoin galaxy. He was an early adopter of the cryptocurrency, and his investments in various crypto projects top $1 million. Among the other projects that Ver has participated in as an investor or consultant are Ripple, Zcash, and the cryptocurrency exchange Kraken. Ver has been outspoken when it comes to singing the praises of BCH, even going so far as to proclaim it the “real” Bitcoin to the chagrin of many traditionalists.
Ver actually has a point. The improvements that BCH offers over traditional BTC are ones that move digital tokens toward a more generalized acceptance, both as an investment vehicle and a means of exchange. Ver believes that the market cap and trading volume of BCH will eventually exceed that of Bitcoin, and he has converted most of his holdings to the new version of the token.
Is Bitcoin Cash a Good Investment?
If you believe the investment wisdom of Roger Ver, BCH is a token worth adding to your portfolio of coins. In the short time that the cryptocurrency has been around it has found some solid support. In January of 2018 its value was $1,623 per token, making it the second most valuable token to hold at that time. Like other cryptocurrencies it has suffered somewhat through the 2018 downturn of the crypto market, but there is every reason to believe that its strong underpinning will give it long term strength.
The value of BCH does not depend upon the value of BTC, although Bitcoin’s movements in the market can tend to have effects on all cryptocurrencies. Most tokens will generally follow the trend of Bitcoin to some extent. After the bull market of 2017, the overall trend for all tokens has been negative. Some see this as a natural development of a very young market.
Investment in all digital tokens carries risk. Those who are considering an investment in BCH should perform their due diligence and research before making an investment decision.
Where to Buy and Store Bitcoin Cash
BCH recently celebrated its one year birthday. It is now found on a large number of cryptocurrency exchanges such as Coinbase and Kraken. It is also possible to make purchases of the token with Changelly and Shapeshift. There are also websites where individuals can engage in peer-to-peer transfers of the token.
The standard methods of storing Bitcoin Cash are no different than they are for storing Bitcoin. You will need a cryptocurrency wallet. There are multiple web wallets to choose from, and hardware wallets like the Trezor and the Ledger Nano S have also included support for this token.
How Can You Use Bitcoin Cash?
At the present time the main use of BCH is limited to investing. It has appeared as an asset which can be traded on the world’s largest cryptocurrency exchanges. One can trade the token against other currencies like Ethereum and Litecoin. Another good investment strategy for many may be to simply buy and hold the token against future gains.
It is a good bet that merchants and service providers will start accepting the token in the near future just as they have embraced Bitcoin as a means of exchange, but this will take time. If one believes Roger Ver, BCH is more amenable to use by merchants because it speeds up transactions and can handle greater volume.
In the meantime you can discuss BCH on a number of popular cryptocurrency forums. You can also stay up to day on the latest news by following Cryptoswede.
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