Many have asked, “Is Bitcoin Cash a Good Investment?” Bitcoin Cash brings sound money to the world, fulfilling the original promise of Bitcoin as “Peer-to-Peer Electronic Cash“. Merchants and users are empowered with low fees and reliable confirmations. The future shines brightly with unrestricted growth, global adoption, permissionless innovation, and decentralized development.
What is Bitcoin Cash
Bitcoin Cash was created as a result of a hard fork in the Bitcoin network. The Bitcoin Cash network supports a larger block size than Bitcoin (currently 32MB as opposed to Bitcoin’s 1MB). Later on, Bitcoin Cash forked into Bitcoin SV due to differences in how to carry on its developments. That’s Bitcoin Cash in a nutshell. If you want a more detailed review watch the complete video. Here’s what the video below will cover:
- 0:50 – Bitcoin forks
- 2:06 – Bitcoin’s block size debate
- 3:35 – Big blocks camp
- 4:26 – Small blocks camp
- 5:16 – Small blocks vs. big blocks arguments
- 7:05 – How decisions are made in the Bitcoin network
- 10:14 – Block size debate resolution
- 11:06 – Bitcoin cash intro
- 11:28 – BTC vs. BCH
- 12:13 – Bitcoin Cash (ABC) vs. Bitcoin SV
- 13:09 – Conclusion
Why Use and Invest in Bitcoin Cash
- Send Money Anywhere in the World Almost Free: With Bitcoin Cash, you can send money to anyone, anywhere in the world, 24 hours a day, 365 days a year. Like the Internet itself, the network is always on. No transaction is too big or too small. And you never need anyone’s permission or approval.
- Be Your Own Bank and Have Full Control Over Your Money: The seizing of capital from account holders (“bail-ins”) that occurred in Cyprus and nearly in Greece, demonstrated that bank deposits are only as safe as political leaders decide. Even under the best of conditions, banks can make mistakes, hold funds, freeze accounts, and otherwise prevent you from accessing your own money. Banks can also decide to block your transactions, charge you fees, or close your account without warning. Bitcoin Cash gives you full, sovereign control over your funds, which you can access from anywhere in the world.
- Increase Your Privacy and Operate Anonymously: Bitcoin Cash offers more privacy and anonymity than traditional payment systems like bank transfers and credit card payments since it’s normally impossible to know who controls a Bitcoin address. Bitcoin Cash offers various levels of privacy depending on how it is used. It’s important to educate yourself thoroughly before using BCH for privacy purposes.
- Free Marketing and Press: By accepting Bitcoin Cash, merchants can gain free listings in website and app directories, gaining even more customers. They can also take advantage of this new trend and generate press for their business.
- Ultra-Low Fees: The network fee for a typical Bitcoin Cash transaction is less than one penny. If you want to convert your BCH into fiat currency, such as US dollars, you can do that through merchant processors for a cost that is still much lower than credit card processing.
The History of Bitcoin Cash
For us, to know whether Bitcoin Cash is a good investment or not, let dive into its history. In October 2008, Satoshi Nakamoto published the famous whitepaper entitled “Bitcoin: A Peer to Peer Electronic Cash System”. In 2009, he released the first bitcoin software that powered the network, and it operated smoothly for several years with low fees, and fast, reliable transactions.
Unfortunately, from 2016 to 2017, Bitcoin became increasingly unreliable and expensive. This was because the community could not reach a consensus on increasing the network capacity. Some of the developers did not understand and agree with Satoshi’s plan. Instead, they preferred Bitcoin to become a settlement layer.
By 2017, Bitcoin dominance had plummeted from 95% to as low as 40% as a direct result of the usability problems. Fortunately, a large portion of the Bitcoin community, including developers, investors, users, and businesses, still believed in the original vision of Bitcoin — a low fee, peer-to-peer electronic cash system that could be used by all the people of the world.
On August 1st, 2017, they took the logical step of increasing the maximum block size, and Bitcoin Cash was born. Anyone who held Bitcoin at that time (block 478558) became an owner of Bitcoin Cash (BCH). The network now supports up to 32MB blocks with ongoing research to allow massive future increases.
Is Bitcoin Cash a Good Invesment?
Yes, Bitcoin Cash can be a good investment and a great way to diversify your portfolio when done right.
Meanwhile, to answer the question “Is Bitcoin Cash A Good Investment?” strategically, at the time of writing this Bitcoin cash has a total market cap of $10,099,702,766 and a 24-hour trade volume of $3,065,661,373.
A high trading volume means high liquidity, or how easily an asset can be bought and sold. Market cap, on the other hand, refers to the value of an asset on the market which also backup why bitcoin cash is a good investment.
Is Bitcoin Cash Better than Bitcoin?
Bitcoin has become the most popular cryptocurrency based on a peer-to-peer network. In Aug. 2017, Bitcoin was split into the original Bitcoin (BTC) and Bitcoin Cash (BCH). Since then, miners have had a choice between BTC and BCH mining because they have compatible proof-of-work algorithms.
Therefore, they can freely choose which coin to mine for a higher profit, where the profitability depends on both the coin price and mining difficulty. Some miners can immediately switch the coin to mine only when mining difficulty changes because the difficulty changes are more predictable than that for the coin price, and we call this behavior fickle mining.
To determine which equilibrium the competing coin systems (e.g., BTC vs. BCH) are moving toward, we traced the historical changes of mining power for BTC and BCH and found that BCH often lacked loyal miners until Nov. 13, 2017, when the difficulty adjustment algorithm of BCH mining was changed.
However, the change in difficulty adjustment algorithm of BCH mining led to a state close to the stable coexistence of BTC and BCH. We also demonstrate that the lack of BCH loyal miners may still be reached when a fraction of miners automatically and repeatedly switch to the most profitable coin to mine (i.e., automatic mining).
According to our analysis, as of Dec. 2018, loyal miners to BCH would leave if more than about 5% of the total mining capacity for BTC and BCH has engaged in the automatic mining. In addition, we analyze the recent “hash war” between Bitcoin ABC and SV, which confirms our theoretical analysis.
Finally, we note that our results can be applied to any competing cryptocurrency systems in which the same hardware (e.g., ASICs or GPUs) can be used for mining. Therefore, our study brings new and important angles in competitive coin markets: a coin can intentionally weaken the security and decentralization level of the other rival coin when mining hardware is shared between them, allowing for automatic mining.
With multiple independent teams of developers providing software implementations, the future is secure. Bitcoin Cash is resistant to political and social attacks on protocol development. No single group or project can control it. Multiple implementations also provide redundancy to ensure that the network retains 100% uptime.
The bitcoincashresearch.org is a good venue for making proposals for changes that require coordination across development teams. For those wishing to implement changes to the Bitcoin Cash protocol, it is recommended to seek early peer-review and engage collaboratively with other developers.
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