Bitcoin Cash BCH is bitcoins little brother born on August 1st from a hard fork, the key differences between bitcoin and bitcoin cash are not only the values per coin, but the size block that each can mine. Bitcoin supports 1mb blocks where as little brother mines 8mb blocks. When the first 8mb block was mined the price rocketed up 300% in 48 hours then suffered a steady decline. However as we’ve seen with bitcoin many times, the price can shoot up hugely after a decline, and no doubt history will repeat itself.
Bitcoin Cash Summary
The impact that the bitcoin cash fork had on bitcoin saw the price of BTC double within a few weeks, this could be indicative on future expectations surrounding bitcoin cash in similar situations, however the popular consensus is that the SegWitx2 bitcoin core release will not have as much impact as it’s a soft fork, and not a hard fork. As bitcoin starts to spawn more altcoins off its leading role in the world of cryptocurrency, it is safe to say that people should be excited about Bitcoin Cash.
Pros to Bitcoin Cash
- Before Bitcoin Cash even turned 1 month old it had a circulating supply slightly higher than bitcoin making it the 3rd largest by market capitalisation.
- It can be easier to mine and more financially rewarding than bitcoin
- BCH confirmations are faster than BTC
- Fully Decentralized
- If you held Bitcoin at the time of the fork, you got free BCH
- Large swings offer opportunity to buy low and sell high
Cons to Bitcoin Cash
- Bitcoin Cash’s success is directly impacted by the mining community
- If the miners choose BTC over BCH the price falls
- High Points are rapidly followed by bearish trends
Bitcoins Cash Future
Aside from the block limit size, bitcoin cash has multiple dev teams working on it, whereas bitcoin only had a single development team. Whilst it’s difficult to know what the future holds for bitcoin cash, it has pedigree on it’s side, it’s what Maserati is to Ferrari, the same engine with a different team developing it. This makes Bitcoin Cash a secure cryptocurrency that is both secure and impossible to counterfeit unlike traditional currency and gold. For those people that wished they bought in to bitcoin at a lower price, bitcoin cash offers this second chance to investors that simply want to hold their coin over long periods of time. For more inforamtion on BCH check their official website here https://www.bitcoincash.org/
So should you Sit on your Bits?
I would say that the history of bitcoin can help you gain some insight to a more efficient version of itself. If the growth of bitcoin cash matches that of its older brother then having some BCH in your portfolio would be a sound investment. That said, the segwit fork could have both a detrimental or positive effect on either crypto currency in November 2017 so if you’re reading this before that happens, make sure you spread your eggs evenly between the two to ensure you don’t miss out. I’d say that this is a must for all crypto portfolios.