Cryptocurrencies

Bitcoin Cash (BCH) review and advice – Cryptocurrencies

To fully discuss Bitcoin Cash (BCH), it is necessary to recall its creation. The goal for the creators of this derivative virtual currency was to address the shortcomings in terms of speed and costly transaction fees. Considering these founding elements of Bitcoin Cash, our opinion is based on its strengths and whether or not to invest in this cryptocurrency.

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Reminder on what Bitcoin Cash is

Bitcoin Cash (BCH) is a cryptocurrency launched in 2017 and which is the result of a hard fork of “classic” Bitcoin. A hard fork consists of integrating a major modification on a blockchain, which requires the creation of a new blockchain and therefore a new currency. If you choose to create a new one and not modify the original, it is so as not to alter the immutable aspect of the blockchain, which is one of its fundamental principles.

And that’s exactly what happened to Bitcoin. The reason ? A block size too small in the blockchain (the register of cryptocurrency transactions), which had the consequence that the limit of these blocks began to be regularly reached from 2015. The creation of Bitcoin Cash is thus the consequence of debate among Bitcoin users on a fundamental issue: that of increasing the size of blocks in the Bitcoin blockchain. If you would like to learn more about the history of Bitcoin Cash, feel free to click on our article.

This hard fork allowed the creation of Bitcoin Cash

What are the advantages of Bitcoin Cash (BCH)?

What are the advantages of Bitcoin Cash?

The advantages of Bitcoin Cash are as follows:

  • Reliability: Indeed, Bitcoin Cash comes directly from the Bitcoin blockchain, the first cryptocurrency in the world;
  • The number of transactions: Bitcoin Cash was precisely created for allow more transactions ;
  • The cost: as the block size prevents transaction bottlenecks, Bitcoin Cash transaction fees are less likely to increase;
  • The simplicity : this cryptocurrency does not pose any problem in its handling (intuitiveness);
  • The stability : Bitcoin Cash can count on a reliable device that has been operating for several years using blockchain technology that is more solid than its predecessor;
  • The notoriety : BCH was supported from the start by renowned influencers in the field of virtual currencies and blockchain;
  • Security : Bitcoin Cash transactions feature new, more secure signatures;
  • Scalability : Bitcoin Cash is not a frozen cryptocurrency, but rather relies on a roadmap accessible to all in full transparency.

What are the disadvantages of Bitcoin Cash?

Besides the risks associated with all cryptocurrencies, that is to say those involving the risks of trading, what are the disadvantages of Bitcoin Cash?

First, there is the fact that the cryptocurrency comes from the Bitcoin blockchain. Indeed, “because” of this, Bitcoin Cash is not seen as a separate currency by part of the community, but just as a bitcoin version… Less well. Although some people distinguish between the two, it is not yet the case for everyone. This is a downside of Bitcoin Cash, because if we start from this premise, the BCH token will have no chance of overtaking its predecessor.

Bitcoin Cash is seen as another version of Bitcoin

The second disadvantage of Bitcoin Cash concerns its mining. Remember that mining is the act of provide the blockchain with its computing power to validate transactions in exchange for tokens. But what is the problem? To put it simply, the size of the blocks between Bitcoin and Bitcoin Cash has been multiplied by 8 but on the fund, the problem is the same: mining is more and more reserved for an elite with economic and IT resources beyond their reach. of the greatest number.

What are the uses of Bitcoin Cash?

Basically, you should know that Bitcoin Cash is for the same purpose than bitcoin : enable decentralized transactions, peer to peer. Indeed, Bitcoin Cash does not exist only for speculation, but also to be used as peer-to-peer virtual currency. In other words: its purpose is for the BCH to be used as currency to buy services or goods, whether from another individual, an e-commerce site or a merchant.

The purpose of Bitcoin Cash is to enable you to buy your goods and services

The more players will accept payment in Bitcoin Cash, the more the cryptocurrency will increase in value, this is the universal principle of high demand in the face of limited supply. In addition, its value can increase thanks to partners. As an illustration, if a large company offers any kind of partnership with BCH, its price is more likely to rise, as this will imply new opportunities for cryptocurrency. To follow the Bitcoin Cash price, you can help yourself from our dedicated page.

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How to get Bitcoin Cash?

Owning Bitcoin Cash can be done from many ways : buy BCH tokens, make a cryptocurrency exchange, or mine BCH. Buying Bitcoin Cash and trading are hands down the easiest ways to get currency. Simply register on an exchange that offers Bitcoin Cash (Kraken, Bitfinex, Coinbase, Binance, eToro, etc.), to make a deposit, then to buy the desired amount. For beginners, be sure to read our guide to getting started in cryptocurrency.

How to buy Bitcoin Cash?

Stay on Bitcoin Cash purchase cost, which is not always controllable due to the high volatility of the price. However, the BCH is a young virtual currency compared to Bitcoin, Ethereum, Ripple or Litecoin. The probability of its value curve rising and falling sharply is therefore potentially higher. You come back to the idea of ​​defining your investment strategy upstream, by adopting virtuous behavior.

But Bitcoin Cash has strengths that may point to a long-term uptrend : speed of transactions, minimal fees, guarantees offered by the blockchain, increasingly recognized use of BCH, etc. In addition, the existence of derivative financial instruments such as CFDs (Contracts For Difference, simplified actions) allows you to speculate on this virtual currency without even owning BCH. The idea is to try to make money by betting on a positive differential between the entry price of the position and the exit price of the position.

Another strength of Bitcoin Cash? Her liquidity. This represents a big problem for buyers and sellers who cannot find, on dedicated platforms, cryptocurrencies to trade, especially the rarest or the youngest. Gold, Bitcoin Cash is well known, so more easily accessible on various cryptocurrency exchanges. The biggest exchanges are rushing to make direct buying of BCH possible for their users.

advice : Think of store your BCH tokens outside of online platforms that may be attacked by hackers or that could shut down overnight. Better to place your BCH tokens in a hardware wallet such as Ledger Nano or Trezor.

The Ledger Nano X hardware Wallet is an improved version of the Ledger Nano S

Our opinion and advice on Bitcoin Cash

It is important to know that Bitcoin Cash is listed in the 5th place in the MarketPlace at the time of writing this article. This is a very good placement for a cryptocurrency that has been created 3 years earlier. But isn’t that just because it comes from the Bitcoin blockchain? The fact that the Bitcoin SV, a hard fork of Bitcoin Cash, is just behind Bitcoin Cash can be proof of this.

Roger ver, promoter of Bitcoin Cash and former CEO of Bitcoin.com, is enthusiastic about cryptocurrency. Asked about CNBC at the end of 2019, he declared: “The [devise la] more interesting is Bitcoin Cash. I think it has the capacity to grow 1000 times more than it does today, as it seeks to become a peer-to-peer source of electronic money for the whole world“. This is obviously to be taken with a grain of salt for those who are fully invested in their role as promoters. Roger Ver, however, is very active, aspiring to create a $ 200 million fund to compete with other smart contract platforms such as Ethereum.

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In conclusion, Bitcoin Cash is an interesting cryptocurrency that has the means to grow. However, for this, it would be important that its existence not remain in the permanent shadow of Bitcoin. If the cryptocurrency manages to break away from this label, it is likely that its price will rise further. If you are looking to invest in cryptocurrency, it is important to keep up with cryptocurrency news. For this, nothing like benefit from the analyzes of the biggest investors / influencers in the cryptosphere, to make the wisest choices at the most opportune times!

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