Is Bitcoin Cash A Wise Investment?

by Andrew McGuinness     Jul 20, 2018

Everyone knows by now that bitcoin is probably the best investment you can make when it comes to cryptocurrency. It has been the strongest cryptocurrency on the market since it was first released in 2009 (though at the time it was fairly weak compared to other investments you could make), and it has remained the most profitable cryptocurrency since.

Because we have such positive associations with the name ‘Bitcoin’, we may assume that everything related to bitcoin would be an investment worth going for. This is where you are mistaken. Not all of Bitcoin’s products have been a success. But what about Bitcoin Cash? Is it going down the same path of success as its parent currency Bitcoin? Or is it seen as just another failing alternative coin trying to stand out among the crowd of coins currently on the market?

1. Short history of Bitcoin Cash

Bitcoin Cash was formed around August 2017 due to a fork in the Bitcoin blockchain that caused Bitcoin to develop a fresh, improved version of itself. Within its first month on the market, it doubled from its initial price of $300 to an astounding $600. The thing on most investors’ minds at the moment is whether Bitcoin Cash might give Bitcoin a run for its money.

2. How it was created

Bitcoin cash is basically a clone that was formed from Bitcoin blockchain. When a cryptocurrency is forked, this means that a clone of the digital currency is created with a few adjustments to improve upon the original concept. As a cause of this, the owners of both Bitcoin and Bitcoin cash now own equivalent parts of each cryptocurrency.

3. Bitcoin Cash successes

This means that Bitcoin now has 16.5 million units that are being distributed, and Bitcoin Cash has 16.5 million units as well. Bitcoin Cash has actually already reached a market cap of $10.8 billion within its one month of life, enjoying its position as third on the list of most profitable cryptocurrencies.

Bitcoin of course tops this list with its $69 billion market cap. This single month of life has actually gained Bitcoin Cash the status of being as successful and profitable as music provider Spotify and social media platform Twitter.

4. Purpose

A rather large benefit of Bitcoin Cash is the fact that it includes improved block size capacity. As soon as Bitcoin Cash hit the market, miners noticed the significantly faster pace at which new blocks were created. This is called the hash rate. The hash rate attracts not only miners, but investors as well, because the more blocks, the more mining possibilities, and the more mining possibilities, the more coins that may be discovered.

Bitcoin Cash was also created with the intention to speed up transactions and processing times. While Bitcoin can complete a maximum of 6 or 7 transactions per second, Visa and PayPal are able to complete 2,000 at the very least. Bitcoin Cash was hoped to help this issue by enlarging block sizes from a measly 1MB to 8MB.

This would allow for the processing times of transactions to be substantially improved. However, in order for such large block sizes to function, a large amount of professional software is required, and this may lead to the cryptocurrency becoming centralized. To centralize Bitcoin Cash would mean to take away its greatest benefit as a cryptocurrency. For this reason, Bitcoin Cash is facing some difficulty.

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