Is Bitcoin Cash (BCH) Cryptocurrency A Buy Right Now?

Last Updated March 30th 2022

4 Min Read

Is Bitcoin Cash crypto a buy now? Bitcoin Cash now offers a favorable balance of risks and potential rewards, according to crypto experts. BCH Bitcoin cash represents a good buying opportunity following a selloff that has left its coins down 70% since last summer.

Cryptocurrencies have been growing with unstoppable momentum. Countries are embracing this new form of currency and shifting over to digital payments. Experts believe Bitcoin Cash (BCH) is a digital asset brimming with potential. Although a relatively new cryptocurrency, BCH has proven itself to be an excellent investment for investors and traders in its short existence.

Bitcoin Cash is one of the top cryptocurrencies by market capitalization, and all signs point to it growing even more. The cryptocurrency has immense growth potential and could soar to new heights in the future.

BCH initially faced rumours about being a scam and completely insecure. However, there were no substantial facts to back up the claims. So how safe is Bitcoin cash (BCH) as an investment asset? Is BCH a buy, hold, or sell right now? Let’s see.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Market-Beating Cryptocurrency — But For How Much Longer?

Know more about the network fundamentals and technical capabilities of Bitcoin Cash before investing in it.

Bitcoin Cash is a peer-to-peer (P2P) electronic cash system that resulted from a Bitcoin hard fork. It is by far the most successful hard fork of the Bitcoin network and is notably faster than Bitcoin. It also has some very noteworthy supporters. It is currently working to resolve scalability issues faced on the Bitcoin blockchain. BCH is also easier to mine when compared to BTC because of the integration of new protocols.

While Bitcoin can process about 7 transactions per second (TPS), Bitcoin Cash can support more than 100 transactions per second. The faster processing speed and the low fees contribute significantly to BCH’s investment value.

Bitcoin Cash is the direct result of scalability problems encountered on Bitcoin’s blockchain. In 2017, many issues took center stage as Bitcoin’s transaction time and fees reached new heights. The increased fees and delays were the results of too much network congestion resulting from larger transaction sizes. Bitcoin Cash does away with these concerns through an increased block size.

Both Bitcoin and Bitcoin Cash integrate a difficulty adjustment algorithm (DAA) to keep block times consistent. Originally, both Bitcoin and Bitcoin Cash used the same DAA. However, In August 2017, Bitcoin Cash introduced an addition to the DAA, called an Emergency Difficulty Adjustment (EDA) algorithm, allowing the network to be more responsive.

BCH offers scalability, which implies its potential to grow in the future is massive.

Check Out: How To Make (or Lose) Money with Bitcoin Cash?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Road Ahead For Bitcoin Cash

Here are some factors and network updates (and offerings) that make Bitcoin Cash a viable investment option.

Decentralized And Scalable

Like other cryptocurrencies, Bitcoin Cash is completely decentralized. Decentralization gives the currency value as it eliminates the need for third-party involvement in transactions. It gives users control of their money and their assets. Bitcoin Cash has nodes spread worldwide, so transactions can still occur even if some of the nodes are not functioning.

Scalability is another massive advantage Bitcoin Cash has over other cryptocurrencies, as it allows more users to conduct transactions on the platform. The team works hard to achieve scalability by promptly implementing whatever changes are needed.

BCH Mining And Consensus

Mining Bitcoin Cash is as easy as mining Bitcoin. Luckily, the coin shares the services of Bitmain, the world’s biggest cryptocurrency miner. Additionally, the coin revised its EDA algorithm recently. This maneuver made it easier for miners to generate BCH. It’s cheaper to mine BCH as well.

Bitcoin Cash utilizes a Proof of Work (PoW) consensus mechanism similar to Bitcoin to mine new coins. Both Bitcoin and Bitcoin Cash integrate a difficulty adjustment algorithm (DAA) to keep block times consistent. Originally, both Bitcoin and Bitcoin Cash used the same DAA. However, In August 2017, Bitcoin Cash introduced an addition to the DAA, called an Emergency Difficulty Adjustment (EDA) algorithm. This allows the network to be more responsive.

High Efficiency

Bitcoin Cash is also more efficient than BTC. The larger blocks on BCH can record more transactions makes room for faster payments at lower costs.

The team behind Bitcoin Cash has put together a rough roadmap and is considering increasing block sizes once again to resolve possible scalability problems. With the current network load, the queue of unconfirmed transactions is relatively low and usually doesn’t exceed 200-250 transactions.

Is Bitcoin Cash Crypto A Buy Right Now?

While buying the coins at cheaper prices now is a positive indicator for Bitcoin Cash tokens, Buying at current level is less risky than a few months ago. A recent positive sign is that Bitcoin Cash crypto has climbed back its 50-days line. The next step is for it to move above the 200-day average.

It is easy for crypto newcomers to dismiss Bitcoin Cash as just a rip-off of Bitcoin. However, this argument falls apart as you evaluate the changes, updates, and community growth the coin has undergone since its creation. Today, Bitcoin Cash stands by itself as a staple in the crypto community.

That said, Bitcoin Cash does not have a clearly-defined governance protocol. While other cryptocurrencies have innovated and outlined detailed governance protocols that assign voting rights, the development and design of Bitcoin Cash seem to be a little centralized with its development teams.

Bitcoin Cash is well-positioned to become the leading cryptocurrency for payments, especially in areas with low internet penetration and high mobile usage, making it a good buy. However, like Bitcoin itself, Bitcoin Cash offers the potential for otherworldly profits, but also, like Bitcoin, high risks and crazy price swings are part of the package.