Cryptocurrencies have taken the world by storm. Far from being a static, unchanging asset class, each new cryptocurrency continues to offer new ideas, new solutions and new use cases to the world. While Bitcoin remains the first and largest coin, it is far from the only game in town. One of the most interesting and popular is Bitcoin Cash. The first fork of Bitcoin, Bitcoin Cash remains a hot commodity and a coin that people in the crypto world are very interested about. Keep reading this article to find more details about Bitcoin Cash and whether you should use it or not.
- What is Bitcoin cash?
- Bitcoin Cash was introduced as an extension of the Bitcoin Blockchain. Bitcoin Cash falls into the category of Altcoins. This cryptocurrency was created back in 2017.
Some Technical Details
Internal disagreement in the Bitcoin community over the direction of the currency led to Bitcoin Cash being ‘forked’ away from the original Bitcoin currency. As a result of technical changes undertaken that original Bitcoin refused to allow, Bitcoin Cash allows for faster transaction speeds, functioning more as a medium of exchange than as a static investment. For this reason, Bitcoin Cash is seen as a currency with more scalability than original Bitcoin, making it attractive to certain investors.
Bitcoin Cash is no different than the standard Bitcoin when it comes to the supply. Same as Bitcoin, Bitcoin Cash has a limit of 21 million tokens.
Ease Of Use
Although cryptocurrencies are way more convenient to use than traditional fiat currencies, some of them are still present a learning curve. Not Bitcoin Cash. While this coin still uses the peer-to-peer model of original Bitcoin, technical changes allow it to process more trades than original Bitcoin at a faster pace, resulting in lower transaction fees than other cryptocurrencies.
Although it has been increasingly difficult to mine Bitcoin or other famous cryptocurrencies, some people still have the resources to continue their mining process. While previously anyone with a computer could have a hope of deriving some value from the mining process, Bitcoin mining in particular has become so difficult that most profitable mining operations use rigs worth at least hundreds of millions of dollars.
Contrast this with Bitcoin Cash – its smaller market cap makes it a more attractive option for miners, giving them a faster result and a higher chance of a block reward.
While Bitcoin Cash has never regained its highest price of 4000 AUD – achieved immediately after forking – the currency is far from a dead end. The coin traded at a high of more than 1400 AUD in April of 2021, and continues to attract a healthy and interested community of investors.
Should You Buy It?
As with all cryptocurrencies, one can never be sure about the next price of Bitcoin Cash. Although the bullish trends forecast that it might soar in value by the end of 2021, experts still don't give a clear answer to whether you should invest in it or not. Ultimately, the choice will depend on your appetite for risk and your interest in the coin.