Exchange rates:

Bitcoin Cash young and powerful

Recently Bitcoin has been rapidly becoming more and more popular once again — such waves are typical for this cryptocurrency since the moment of its launch. Sometimes people buy it more, sometimes there is smaller demand, but there is no difference for Bitcoin as it is still the most known and attractive cryptocurrency on our planet. Its hegemony has been lasting since the launch of BTC — the first cryptocurrency — and Bitcoin will certainly remain in the list of the most demanded coins. But there is enough space for other currencies too.

Unclear future of Bitcoin

Fluctuations of Bitcoin make many miners nervous — some of them invest really serious money in mining and just cannot afford abrupt and unpredictable fluctuations. What's more, some miners and users were not satisfied with the scalability of Bitcoin.

Without wasting any time miners developed a new fork on August,1 which immediately turned into a new cryptocurrency called "Bitcoin Cash". Please note that it has nothing in common with the original Bitcoin except for the name. In general Bitcoin Cash is just another altcoin like Litecoin, Dogecoin and many others.

Cryptocurrency traders tell about crisis on market. It doesn't mean that the demand for cryptocurrencies has reduced — not at all. They mean the lack of new, innovative ideas. Bitcoin is not evolving anymore. It has been slowly turning into something not exclusive and not fully convenient as a tool. BTC is a great investment for all times, but there are coins providing their owners more convenience and flexibility.

Creation of Bitcoin Cash was just a matter of time. It should have happened earlier, but it happened now. The new coin has taken some really good features and solutions from classic Bitcoin and also got a lot of new things. So let's take a closer look at Bitcoin Cash and decide if it can become the cryptocurrency of the future.

Bitcoin vs. Bitcoin Cash

BTC users were unhappy with the speed of transactions. Banks process transactions much faster even using all the anti-malware and anti-money laundering software. Bitcoin had to make people wait for too long. As for Bitcoin Cash its block size has been increased to 8mb which guarantees faster verification and flexible level of difficulty. Such a solution guarantees fast verification regardless of the number of miners operating at the moment.

It is pretty obvious that Bitcoin and Bitcoin Cash will be separating further and further from each other.

Today Bitcoin Cash costs over $300 which does not look impressive if we compare it to the price on August, 1 — $299. However during this month Bitcoin Cash managed to become more than twice more expensive (its price raised to over $700) and 1.5 times cheaper ($204 on August, 4).

When looking on the chart of Bitcoin Cash and USD we see terrible volatility. Bitcoin Cash is undoubtedly a very risky asset now, but experienced investors like such assets a lot. However it's worth remembering that it's possible to both gain and lose a lot with risky assets.

Prospects of Bitcoin Cash

Due to high volatility of Bitcoin Cash and instability in the crypto market in general there is no chance to predict the future of this new cryptocurrency. It's difficult to say even about Bitcoin future so how can anyone be sure about Bitcoin Cash?

People did not believe in Ethereum, though. Many of them were sure that ETC would disappear soon just like many other currencies, but now Ethereum is in top-10 biggest cryptocurrencies on market. It managed to survive and succeed, therefore Bitcoin Cash can do the same, why not?

It is now especially attractive for people who were waiting for such an alternative to classic Bitcoin — faster verification and other advantages make traders invest in BTC Cash now.

Another plus of Bitcoin Cash is top-level security inherited from Bitcoin. From the very beginning of its existence this cryptocurrency has few big advantages, doesn't it? No surprise that not only traders but also speculators and jobbers rushed to buy and then sell it. Actually, that is the main reason of such volatility.

In general it should be said that the future of Bitcoin cash will totally depend on market players' vision of this cryptocurrency. Now it's very attractive, but we cannot guarantee it will remain demanded in a year or so.

It may be said for sure that Bitcoin Cash will not replace BTC, but it can be a reliable altcoin to invest into. Diversification of investments is a known strategy among experienced traders and a lot of them are now buying Bitcoin Cash. They do it just to test the new currency and see if it's worth keeping money in it.

Should one buy Bitcoin Cash?

If you follow the news regarding cryptocurrencies you have probably noticed that incredible amount of articles, reviews and other materials dedicated to Bitcoin Cash. Experts discuss the new currency, try to understand its dynamics and to predict its behaviour in the nearest future.

Some well-known experts like Regina Lai from suppose that Bitcoin Cash has all the chances to beat its predecessor — Bitcoin — and become the most expensive, popular and demanded cryptocurrency on the global market.

She is very optimistic about the new cryptocurrency. Bobby Ong, co-founder of CoinGecko has positive opinion about Bitcoin Cash as well. He shared more cautious forecasts, but according to Bobby Ong Bitcoin Cash will keep on growing in the long term. How big the growth would be — that's the matter.

We do not recommend invest all the money or even significant part of your budget in Bitcoin Cash right now unless you are a very risky player aiming at high profit. It would be OK to invest 20-25% of the investment budget, though and to wait for a while.

Bitcoin Cash is now being added to the list of cryptocurrencies on all world largest exchanges. We have all the reasons to expect it to be available on all the exchanges including smaller websites. BCC — this is how Bitcoin Cash is now written on exchanges — is certainly something which is worth trying.

© – , updated 08/01/2023
Reprints are allowed only with permission of BestChange

See also