Bitcoin Cash, as the name suggests, was once part of the Bitcoin blockchain. But, you should know right away that the two criptocurrencies, Bitcoin cash and Bitcoin blockchain, are different and are sold differently. The original group of developers behind the major cryptocurrency were split on some changes that were to be made. As a result, a small group of developers branched out and implemented these changes to their version of Bitcoin, which came to be known as Bitcoin Cash (BCH). By the end of this article, you will have everything you need to know before you go in to buy Bitcoin Cash.
— Jane 1289 (@1289Jane) March 5, 2022
What is Bitcoin Cash?
Bitcoin Cash aims to be an electronic cash system, which would work in the same way as normal currency would. Payments using this crypto are sent directly from one user to another. It does not depend on middlemen such as banks and payment processors to help facilitate the transfer. And since financial third parties have no control over these assets, they can’t be seized or frozen either. At the time of writing, the circulating supply of Bitcoin cash is 18.996 million. The maximum supply of the token is set at 21 million.
— BitcoinCashers (@BitcoinCashA) January 10, 2021
Advantages of Bitcoin Cash
Here are some of the main advantages of using Bitcoin Cash:
Cheap Transfer Rates
It costs about $0.20 per transaction to process Bitcoin Cash payments. This is much lower than using BTC for payments, since they can rise as high as $1 per transaction.
Faster Transfer Times
It doesn’t take ten minutes like Bitcoin transactions to send money. With a new and updated model, Bitcoin Cash transfers are quick and easy.
More Transactions Per Second
One of the key changes that were made to the Bitcoin block when it was forked to create Bitcoin Cash was that the size increased from 1MB to 8MB. As a result, Bitcoin Cash is able to have low transfer fees and a fast processing speed. It is also able to meet the high global demand and is much more scalable.
Points to Note About Bitcoin Cash
Bitcoin Cash can be mined, which helps add new blocks to the blockchain. People who mine use computing power and electricity to solve complex puzzles and submit their blocks to the parent network. More miners lead to increased security in the network since it increases the hash rate and prevents one person from having control over the system. Moreover, anyone can mine Bitcoin Cash. They need specific equipment to do so, which can be purchased or rented. It can be done individually, but miners often pool their hash rate together and split the returns equally.
Coin Analysis & price prediction
At the time of writing, the token is worth $330.5, and has been recovering after a crash in mid-February. The token reached its highest value of $4,355 in December 2017, shortly after its release. It has been unable to reach the same heights since. WalletInvestor predicts a spike up to $449 within a year, and also has a similar bullish report for long-term investors, with a projected amount of $1035 in five years. DigitalCoinPrice also has a similar projection based on their analysis, quoting a value of $443 by the end of the year, and a rise to $535 next year.
By 2027, they predict a rise to $862. With increased flexibility and scalability over the Bitcoin network, the general prediction is a bullish run for Bitcoin Cash. Their improvements over the original blockchain could help them gain increased status in the cryptocurrency market, and ultimately reach the $1000 mark by the end of the decade.