Bitcoin Cash: Is It a Worthy Option for Investment?

Bitcoin Cash: Is It a Worthy Option for Investment? Once new investors enter the market, they undoubtedly give an eye to the king of all crypto coins, Bitcoin. It is the most recognized, popular and biggest cryptocurrency in terms of market circulation. But, top it all, Bitcoin is the most expensive so that it has become hardly affordable for some. You can now buy Bitcoin at around $6,357.00 (as of 02/07/2018), a figure that seemed unattainable a while back, but which is now considered a historical dip. With all the powers of decentralization and privacy it brought along, it comes as no surprise that several other cryptocurrencies have tried to emulate Bitcoin. These cryptocurrencies, similar to Bitcoin, have originated from the event known in the crypto world as a fork.

There have been multiple forks so far. The recent and, probably, the most popular are Bitcoin Gold and Bitcoin Private. However, there is another one, which is arguably the most used and the second most valuable cryptocurrency in the market – Bitcoin Cash (BCH). As of today, the BCH to USD rate sits at $733 and enjoys large trading volumes among exchanges. What are the reasons for Bitcoin Cash becoming so mainstream? Let’s see.

How did it all begin – The case over block size limitation

In layman’s terms, forking means coming up with a new cryptocurrency based on the initial (or parent) blockchain network. Hence, a replica coin is created, albeit with certain improvements in the protocol, processing speeds, and capacity. Bitcoin laid the ground for a new concept of money that once took the world by storm. However, like any other early mover in technology, the pioneer inventions become outdated soon and more technologically advanced versions emerge to compensate for the drawbacks.

Being designed as an alternative payment system and a substitute to traditional money, Bitcoin wasn’t ready to weather the storm of increasing popularity. Once the demand for the first-ever cryptocurrency grew, the blockchain appeared to be incapable of processing the increased amounts of Bitcoin’s transactions due to a limited capacity of blocks. The necessity for essential upgrades loomed largely, and the developers had no choice but to come with the solution. The proposed update was expected to improve the capacity of the network, though insignificantly. Sure, this was not a solution that would satisfy all members of the community. As a result, BCH was born, splitting the users into two opposing groups.

It can be quite easy to get lost in the myriad of forks since BCH was created, but Bitcoin Cash stands out because of mainstream attention and unique properties it possesses.

Investors are looking into advanced altcoins like BCH

The cryptocurrency industry is fast-pacing and highly diverse. There are over 1500 crypto tokens circulating in the market, with some of them becoming a perfect tool for investment and others being an outright scam. Seasoned investors appear to be more demanding and sophisticated. So, for a cryptocurrency to boost in acceptance, there should be clear advantages that allure investors into buying.

It is apparent that BCH is far from matching Bitcoin’s position in terms of value, circulation, and awareness. Still, Bitcoin Cash is certainly one of the best investment options outside the top 3 cryptocurrencies leading the market by a total cap now.

If we take a look at Bitcoin Cash’s value during its inception, which was $294.60, it is apparent that the cryptocurrency has grown in leaps and bounds over this time period. For investors, there are several other factors involved that make Bitcoin Cash the perfect vehicle for investment. These are listed below.

1. Adaptability. With an increase in cryptocurrency popularity worldwide, Bitcoin Cash has become arguably the second most accepted cryptocurrency in the world, with everyone from small-scale vendors to large commercial entities opening its doors to Bitcoin Cash payments.
2. Self-Sovereign Currency. Bitcoin Cash is decentralized and is influenced by no single party or institution. Thus, the circumstances of artificial inflation or any other forms of intervention by any national governments are eliminated.
3. Scarcity in Supply. Scarcity is directly related to the value of a cryptocurrency as it is needed to maintain value. Hence, Bitcoin Cash has a limited and well defined total supply, something which even gold does not possess. According to the team, there will only be 21 million BCH tokens created in its lifetime.
4. Security. Bitcoin Cash is very well secured, and the threat of counterfeiting is almost eliminated. This is because it uses cryptographic hash functions, which in turn make every unit unique and non-duplicated.
5. Usability. Bitcoin Cash transactions are fast and cheap. That said, it is more usable as electronic money for daily operations.
6. Stable Value. For any money to be taken seriously, it should have a stable value. This is because it is used as an instrument to buy goods and services, which requires a non-volatile store of value. Comparatively, Bitcoin Cash showed fewer signs of volatility, with several opportunities for short-term gains.

As mentioned earlier, Bitcoin Cash is a split from the original Bitcoin, with several areas of improvement as promised by the developers. That being said, Bitcoin Cash is still behind Bitcoin when it comes to popularity. One of the greatest hurdles in the path of Bitcoin Cash’s success is the increased interest in other similar cryptocurrencies. As Bitcoin is still the dominant entity in the digital currency market, analysts believe that Bitcoin Cash would also become a staple in the near future. With big cryptocurrency exchanges like Coinbase, CEX.IO, and Kraken offering BCH pairs, the potential is high for BCH investment in the near future.

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