Bitcoin Cash (BCH) review: Could BCH top BTC?
With a global cash market ten times bigger than gold, many believe Bitcoin Cash (BCH) has tremendous upside potential. While Bitcoin Cash continues to be among the top cryptocurrencies out in the market, believers are optimistic that big things are coming to BCH very soon.
Just this month, Bitcoin Cash transactions caught up to Bitcoin’s transactions per day. Data from Fork.lol shows that on February 12, BCH’s trades per day even surpassed BTC’s with 365,975 transactions against Bitcoin’s 354,065.
These are indeed exciting times for Bitcoin Cash holders.
With a growing number of merchants accepting BCH in regions like Slovenia, Australia, and Japan and the rise of global interest in crypto, Bitcoin Cash may be poised to have a great year in 2021.
Here’s what you need to know about this Bitcoin hard fork today.
- Bitcoin Cash explained
- How much is BCH worth?
- Is Bitcoin cash a good investment in 2021?
- Get Bitcoin Cash without giving up your crypto via MyConstant
Bitcoin Cash explained
Bitcoin Cash definition
Despite similar names, Bitcoin and Bitcoin Cash are not the same thing.
Bitcoin Cash is a 2017 hard fork off the original Bitcoin blockchain. This means Bitcoin (BTC) and Bitcoin Cash (BCH) share quite a few structural similarities between the two coins.
Note: A hard fork is when a crypto’s community votes to drastically change a blockchain. This causes a separate chain/crypto to be created with different rules than the original.
But what led the BTC community to create a new coin? And what new properties does BCH bring to the table?
Bitcoin Cash history
One of the major criticisms of Bitcoin, especially now, is that it’s too slow and transactions too expensive. This is the famous scalability problem that has been perplexing the most famous cryptocurrency ever since its creation.
The scalability issue
Transactions on the blockchain are confirmed when they’re added to a new block. For Bitcoin, a block is created every 10 minutes on average.
But because a block has a limited size of just one megabyte, it can only fit a relatively small number of transactions. So when all transactions can’t fit into the next block, the result is delays and increased fees.
An average block on Bitcoin can hold about 2,700 transactions. 2,700 transactions every 10 minutes means about 4.6 transactions a second. For comparison, Visa can confirm 1,700 transactions per second. This makes Bitcoin un-viable as a direct replacement for cash.
The Bitcoin Cash faction proposed that the problem be solved by increasing the block size to 8 megabytes and, subsequently, to 32Mb. Bigger blocks mean that more transactions can fit into them, leading to faster confirmations and lower fees.
Why use Bitcoin Cash?
- Bitcoin Cash enables instant transactions, at a fraction of a cent.
- BCH has wide adoption, accepted by over 100,000 merchants online worldwide, with brick-and-mortar establishments joining as well.
- You can mint your own tokens on the BCH network.
- BCH is supported by Paypal and every major crypto exchange including Blockchain.com, Binance, and Coinbase.
- Smart contract support (as of November 2018)
The downsides of Bitcoin Cash
Bitcoin purists believe increasing the block may hurt Bitcoin’s decentralization and functionality.
A larger block takes more time to travel through the network than a 1Mb block. Once that block reaches a computer on the network, the computer then needs to verify all of the transactions inside that block.
If the block is too big, some worry all transactions won’t be verified before the next block arrives within 10 minutes or so. This means the network could start lagging behind new transactions, which can create disputes about the current state of the Bitcoin ledger and issues like the infamous “double spend”.
Bitcoin Cash critics, however, point out that BCH blocks are rarely larger than one megabyte and the extra block space has never really been used.
Another downside is that the addition of smart contracts to the chain even created competition for Bitcoin Cash. After launch, the network went through its own hard fork that gave birth to Bitcoin SV (Satoshi’s Vision). Besides not supporting smart contracts, BSV also increased the block size further up to 128 megabytes.
How much is BCH worth?
Throughout 2020, the value of BCH has hovered just below $300. In the first week of January 2021 however, Bitcoin Cash broke through and breached the $400 mark.
Bitcoin Cash reached a peak of over $700 a coin on February 16. There was a major dip on February 22 of 2021 that saw the value of BCH slide from $733 to $495. The price of Bitcoin Cash since then has been hovering right around the $500 mark.
Why did Bitcoin Cash increase in value?
Bitcoin Cash price predictions were given a welcome boost after PayPal announced in 2020 that it would support it on its platform With the backing of PayPal, more merchants are now able to accept BCH coins from millions of shoppers.
With this development, Bitcoin Cash now has an enormous opportunity to win not just merchants, but large masses of consumers as well – even those who have had little experience with crypto to date.
How many Bitcoin Cash coins are there?
Bitcoin Cash is a mineable coin. The max supply of mineable BCH is 21 million units. 18,664,138 coins are currently in supply as of February 2021. Bitcoin Cash currently has a Market Cap of $12.8 billion.
How do I get a Bitcoin Cash wallet?
You can easily get your own Bitcoin Cash online or purchase a physical wallet for better security. Most major multi-cryptocurrency wallets allow you to store Bitcoin Cash today.
Is Bitcoin cash a good investment in 2021?
One of Bitcoin Cash’s strongest advocates, an early and semi-famous Bitcoin investor named Roger Ver, believes the crypto asset is behind the curve of BTC when it comes to price growth.
He and many others also believe that it’s difficult to directly compare BTC and BCH. One of Ver’s most viewed tweets stated his belief that “Bitcoin may replace gold. Bitcoin Cash may replace fiat.”
Paypal’s acknowledgment of Bitcoin Cash’s value has been a huge boost to the crypto and may encourage adoption as more platforms bring on crypto as a payment method.
And with the rise of DeFi, the Bitcoin Cash network’s decision to add smart contracts to the protocol may give BCH more viability as a source of earning interest.
Get Bitcoin Cash without giving up your crypto via MyConstant
You can buy Bitcoin Cash without having to trade your cryptocurrencies via crypto-backed P2P lending sites like MyConstant. We offer instant, crypto-backed loans at a low rate of just 6.5 to 7% APR in cash or BCH. You can choose from over 70 different crypto assets as collateral.
Other great features of MyConstant:
- An extensive knowledge base of blog articles and guides on crypto and investing.
- 24/7 customer service by email or phone.
- You can back your loans with multiple cryptos.
- Early repayments for a lower rate.
- Easy onramps from fiat to crypto.
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