Solana (SOL), is a network that has been very popular in the cryptocurrency market, essentially after having suffered a lot with the fall of Corretora FTX, check out our opinion about it.
What is Bitcoin Cash? Know your Indifferences
10/24/2022
Bitcoin Cash is one of the most curious projects in the Crypto world, as it marks the beginning of an era: the copies that didn't work out so well! Let's do a general analysis and if this asset can rise even.
What is Bitcoin Cash? Know your Indifferences
What is Bitcoin Cash?
Bitcoin Cash, with the abbreviation of BCH (we are going to use this abbreviation a lot here) is a Cryptocurrency created in 2017 with the purpose of making payments and, which had a very large growth in the year 2018, when "payment" digital assets were on high.
Basically, BCH is a Hard Fork, in other words, an "upgrade" of the Bitcoin Blockchain. The idea is very popular with investors who defend the functionality of cryptocurrencies as a universal means of payment, as "Cash" means exactly that.
The 2018 "boom" of payment cryptocurrencies is due to the difficulty in making transfers with real Bitcoin, at the time, there was no lightning network and no second layers for the asset as we know it today. For example: the Binance Smart Chain network.
Nowadays, Bitcoin Cash is considered outdated (as second-tier btc has virtually instantaneous transfers). Therefore, the long-term trend of this asset is not very optimistic.
Some people say it is a "scam" where the creators developed this crypto just to "Make Money". - IT IS? We don't believe it, this is very personal to each one... at the time it was created: dividing the players who believed in btc as a means of payment and others, as a store of value.
Bitcoin Cash was a cool idea when it was created and it had its uses, but it has nothing to do with the real Bitcoin.
Related:
Chainlink is a Cryptocurrency that has everything to succeed in the Crypto Market. In fact, it is the most famous Oracle on the Ethereum network and has been rising a lot in recent weeks. Check out.
Polygon (Matic): What is it and What is the Use of this Cryptocurrency? This is perhaps the most famous coin within the Ethereum Scalability niche. Get to know a little more about her.
What is Shiba Inu? Does this Cryptocurrency so talked about and questioned actually have any use? In this article you will discover points about this Memecoin that you had no idea about!
Difference from real Bitcoin to Bitcoin Cash:
One of the reasons that makes Bitcoin unique is the fact that the blocks are small, making it not as scalable on its original Blockchain. But there is a reason behind it: Security. When you increase the size of the blocks, it makes the entire Cryptocurrency ecosystem more scalable when making payments, however, you make the network more vulnerable. This is the first difference between these assets: Bitcoin Cash is fast and made solely for making payments, Bitcoin is extremely secure, stable and decentralized.
As many investors defend the idea of cryptocurrencies replacing the traditional financial system, BCH was created precisely for this reason (since most investors defend the idea of btc continuing with the same number of blocks: 1MB, being able to process from 2 to 7 transactions per second).
To give you an idea, dear reader, the traditional credit card system, such as Visa and Mastercard, can process up to 1,800 transactions per second, so in this regard, Bitcoin is far behind.
On the one hand, we have a community that defends the idea raised by Satoshi Nakamoto: decentralization (which is the main reason why btc has this absurdly high value). And, on the other hand, we have the idea of "replacing the traditional financial system", even if centralization is needed to do so. That's why in 2017 he heard this "hard fork" and divided the communities. It is obvious that supporters of BCH is strictly minor, but understandable.
The only similarity of these cryptocurrencies:
It is a fact that, in the crypto universe, Bitcoin is the most valuable asset and all other cryptocurrencies follow in the same direction. An interesting fact about btc, is that every 4 years, there is a phenomenon called "halving", which cuts the miners' reward in half!
That said, it is important to know that, every time this phenomenon happens, Bitcoin tends to grow a lot in market value and, consequently, all altcoins follow the same path... they ride the wave of btc appreciation. The BCH also goes through this process, however, be very careful!
Bitcoin Cash, Price and how far it can go
A very important thing that we must observe in all cryptocurrencies is if they form, in each cycle, higher tops than the previous one and, as we can see, this is not the case with Bitcoin Cash...
Since its historic high in 2018, the asset has suffered, and suffers, a lot from market downturns, so be very careful when investing in this cryptocurrency. We don't want to induce you to make your decisions, but invest with your foot on the ground always!
It is a fact that, as stated above: if bitcoin rises, altcoins soon follow, so Bitcoin Cash may indeed rise in btc appreciation cycles, however, the tops of this asset are getting smaller! So, in the long term, if you expect a good appreciation for this asset, we are sorry to tell you: this is unlikely to happen.
We recommend reading: Financial Education for Crypto Investors
Price and what to expect?
The Bitcoin Cash Price today is 107 Dollars and it once cost $3,324. A nice price pullback since then. Thinking that with each cycle, the supply of BHC decreases and the new top is lower, the long-term expectation is not optimistic!
Some investors prefer to use fundamental analysis when it comes to holding, but in this case, there is not much to do and analyze, Bitcoin Cash is a copy of the real Bitcoin and has no identity of its own; even your name is a copy.
Conclusion:
So... despite the criticism, do we invest in Bitcoin Cash? The answer is: no, we don't! The reasons are numerous, but the main one is that, nowadays, it is no longer useful. The idea of sending and receiving BCH is interesting, the fees are much more affordable than the btc network itself, however, if we compare it to secondary layers, it makes no sense and is much inferior, bitcoin itself already has this feature.
Also, there are other cryptocurrencies on the market that both the transfer rate and speed are much higher, as is the case with the Solana network and even TRON.
Since its inception, Litecoin has been around, and the transfer fees and time are pretty much the same. Or even worse... Dogecoin itself already showed this before the BHC!
If we look at the chart of this cryptocurrency, since its creation, it goes against what we technically believe: an asset that, with each cycle, forms not only smaller tops, but slightly lower ones.
We recommend: Meet the Best Cryptocurrency Broker on the Market
Lucas Lippe
The idea of freedom is fascinating and Bitcoin gives us that in many ways. Explaining ideas of a decentralized web on the Bitcoin Lovers website.