Bitcoin is a well-known name in the world of cryptocurrency, and it is not the same as Bitcoin cash. While technically, there is a very little difference between the two, they are completely separate entities. Here, we will tell you what Bitcoin cash is and whether it is worth investing in.
Bitcoin and Bitcoin Cash :
Bitcoin cash (BCH)is a Bitcoin fork, and it came into existence in 2017.
Right one from day one, Bitcoin had one major problem, and that was scalability. The size of each block was set at 1 megabyte in the year 2010. It was known that this would eventually slow down the speed of transactions and limit the potential of the currency to grow.
In 2010, the said block size was not a problem as the Bitcoin value was low and it was done to prevent spam attacks. The value increases manifold by 2015 with the average block size reaching 600 bytes. As more blocks started reaching their capacity, transactions got delayed.
To address this issue, a number of proposals have been made time and again. The focus has mostly been on increasing the block size. Bitcoin is decentralized and not managed by a single central authority, and this leads to proposals taking a lot of time to get finalized. This, in turn, has resulted in several forks, or groups using different blockchain ledgers with new standards.
Bitcoin cash is a fork from Bitcoin Classic, and it can increase the block size from 1MB to 8MB. It also does not use SegWit. This Bitcoin fork aims to speed up the number of transactions to be processed. It is believed that this will allow it to compete with the huge volume of transactions handled by Visa and PayPal by increasing their block size.
BCH Price Prediction: Should You Invest or Avoid?
As of 2018 and the latest BCH Price Prediction, it is one of the most valuable cryptocurrencies in the market. Whether you should invest in BCH or that matter, any other cryptocurrencies depend on a myriad of internal and external factors. The volatility of the market should also be kept in mind.
Bitcoin happens to be one of the biggest competitors of Bitcoin Cash. Here, are some of the reasons why investing in BCH is an intelligent thing to do:
- If scalability continues to be a problem for Bitcoin, then that is definitely good for BCH.
- While BTC to BCH is a popular conversion, more and more miners are taking a shift from BTC to BCH, and this will also ensure BCH’s growth.
- The fact that BCH shares history with Bitcoin is what makes investors trust it as a cryptocurrency.
- BCH is also available in a wide range of exchanges, and many wallets support it. The ease of access is another good thing about this cryptocurrency.
Having said all these, BCH has a lot of competitors in the market, and that fact that it is not centralized is a major drawback. The value of BCH is expected to grow in 2018 and also beyond as it is just like your regular money and can be used for everyday transactions. However, making an accurate prediction isn’t easy for cryptocurrencies whether it is the BCH price or VTC price or ZCash price. Do your research before investing in one.
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Tags: Bitcoin , Bitcoin Cash , Bitcoin Cash Forecast