Bitcoin Cash Investment Score: B-
Bitcoin Cash Growth Potential: C+
Bitcoin Cash Sustainability Score: C+
Bitcoin Cash Brains Behind Currency: B
The Bitcoin Fork
Bitcoin cash is one of the very first “altcoin” placements to come into existence. It was first seen as part of a user executed soft fork known as BIP 148. BIP stands for Bitcoin Improvement Proposal and 148 represents one of the larger improvements activated on the Bitcoin network to date.
Bitcoin cash exists because of a hard bitcoin fork which stemmed from BIP 148. Bitcoin cash was initially part of bitcoin, but it became an offshoot of the currency because of a long disagreement over scalability. Investors couldn’t agree on how to handle three main issues that stemmed out of the decentralization of the currency. This was why BIP 148 was brought to the forefront. It covered the following:
- Transactions were slow. Bitcoin could only handle 7 per second
- Worldwide payments were not available with consistency
- Processing fees were far too high
Essentially bitcoin began to struggle with how to maintain its root value and not devalue the currency with testing and innovation. The result was the issuance of a hard fork and a new update to the coins software moving it towards the solution, a peer to peer model.
This peer to peer model would allow for payments to be sent directly. The currency would no longer have to go through a financial intermediary like an exchange or a bank in the event cryptocurrency was standardized. As part of this hard fork, bitcoin owners received a portion of the new currency in addition to already issued Bitcoin shares. This was to enable the peer to peer capabilities of the currency.
Bitcoin cash increased the transaction capabilities by utilizing the services Bitmain, a major Chinese manufacturer and miner of Bitcoin. They coded the initial response of BIP-148. What resulted was a much larger blocksize capable of larger volume.
Bitcoin Cash increased the blockchain size by nearly eight times. This was the primary reason for the enabling of a peer to peer capability. Worldwide payments were also no longer an issue as the peer was the officiating intermediary. Peers also now controlled processing fees allowing for a lower standardized price. The first days of Bitcoin cash were seen on August 1st, 2017.
Bitcoin Cash is now one of the top five market capped cryptocurrencies in existence. It is one of the four cryptocurrencies lucky enough to trade on mainstream bitcoin exchange app Coinbase. The first day Bitcoin Cash began trading on Coinbase was December 19th, 2017. The Tuesday is fondly remembered, as Bitcoin Cash saw frenzied action. The FCC even investigated the jump from $600-$3000. It’s one of the things that makes me wary about the currency.
Bitcoin Cash Haters
Many media and review entities out there would tell you that Bitcoin Cash is destined to fail. They may be right. They may be wrong. It’s hard to say. Just years ago, bitcoin was doubted to fail but here it is, a few years later, trading at over $10,000 per unit.
Bitcoin Cash needs massive financial support over time to succeed much as Bitcoin did in its infancy stages. This is where much of the fear comes from. Bitcoin Cash is reaping the benefits that Bitcoin is now, only its too infant to be doing so.
Due to its availability as an “extra,” the currency is viewed as expendable in downswing times. This creates a large fear in long term investors. It doesn’t have the same HODLR support as Bitcoin. Many speculative investors will move directly into fiat currency when markets turn tumultuous. Bitcoin Cash will never be considered the backbone currency that its father Bitcoin is.
The largest bitcoin cash supporter…you guessed it: Bitcoin. Many claim that Bitcoin cash is the best attempt yet at Satoshi’s vision of unrestricted growth, global adoption, permission less innovation, and decentralized development.
Bitcoin itself actively supports the currency on bitcoin.com and actively describes its functionality. Despite being two separate entities, it’s as if the two are on the same team. The currency is seeing adoption in the same places that bitcoin is, and for that reason I think we have to take Bitcoin Cash seriously.
Where to buy Bitcoin Cash?
We recommend you buy bitcoin on any of our approved exchanges listed in the article here. If you are looking for a faster route to invest, you can always click here or below. Coinmama is our preferred method, but Coinbase is also available to you to trade Bitcoin cash.
Best of luck out there!