If you’re new to Bitcoin Cash, you might be wondering if Bitcoin Cash (BCH) is a good investment? Or should I invest in Bitcoin Cash? Well, we’re going to put straight all Bitcoin Cash-related myths so you can work out for yourself if investing in BCH is for you or not.
So, here is all you need to know about Bitcoin Cash: one of the more controversial digital assets in the cryptocurrency investing sector.
Bitcoin Cash (BCH) is one of many Bitcoin offshoots that have emerged in the last few years, and it is by far the most successful.
Often seen as the underdog, while BCH has not done as well as its big brother, Bitcoin, in terms of popularity, it has done a lot to make cryptocurrency a viable way to send money to each other.
So, while it might not make you a gazillionaire, there is a real opportunity with BCH to make some serious money.
Without further ado, let’s get to it.
Getting Started With Bitcoin Cash Investing
To start investing in Bitcoin Cash BCH, you first need to Sign up online with an exchange that will allow you to buy and invest in Bitcoin Cash.
An exchange broker is an online platform that enables you to buy and sell Bitcoin Cash as well as many other cryptocurrencies that they have listed on their platform.
If you want to buy and invest in Bitcoin Cash BCH quickly and easily with your credit card check out eToro Exchange!
What is Bitcoin Cash?
Before we explore the potential of Bitcoin Cash as an investment, let’s try to understand the nature of Bitcoin Cash.
Bitcoin cash BCH is one of the top 20 cryptocurrencies. Though do not simply invest in any asset just because it’s popular! You should instead invest in something you can understand and be able to evaluate.
So back to the question, what is Bitcoin Cash? Bitcoin Cash is a cryptocurrency created in 2017 as a hard fork of Bitcoin.
Here we should mention that a hard fork refers to any radical changes to a blockchain platform’s protocol; changes that all nodes should comply with.
Though Bitcoin is considered the most successful traded cryptocurrency, we all know that Bitcoin is not a perfect cryptocurrency.
Speed or security, that is the question!
That’s right, After a lot of heated discussions across the cryptocurrency community, Bitcoin Cash was created in 2017 to improve the scalability of Bitcoin and facilitate everyday transactions and investing.
To achieve this goal, Bitcoin Cash was designed with eight times larger blocks than Bitcoin - a fact that attracts many cryptocurrency investors to consider adding Bitcoin Cash to their portfolio and to invest in Bitcoin Cash BCH. Today, after further improvements, BCH now has 32 MB blocks.
Here we should note that the size of any Bitcoin block is limited to 1 MB, which is believed to give enough time between transactions to improve validation and security.
How Does Bitcoin Cash Work?
Bitcoin Cash works in a very similar way to Bitcoin. Both use the SHA-256 hashing algorithm, are capped at 21 million coins and use proof of work for mining.
Transactions are added to blocks and blocks are added to the blockchain after they are validated by miners. Miners then receive a transaction fee for the transactions they validated and newly minted coins.
BCH is decentralised and its network is spread among a vast number of users to keep it secure. You can also view BCH transactions on the distributed ledger.
As mentioned above, the major difference between Bitcoin and Bitcoin Cash is blocksize, with BCH being 32 MB, 32 times larger than BTC. This allows Bitcoin Cash to process up to 116 transactions per second, while Bitcoin can only handle seven.
But there are some other minor differences too. Bitcoin adopted the lightning network and ‘Segregated Witness’ (SegWit).
The lightning network is a second layer that was added to Bitcoin that allows transactions to happen off the blockchain.
SegWit was a soft fork (like an update) to Bitcoin’s blockchain that removed the need for signature data in transactions. This was done to make BTC transactions smaller, which meant more could fit in a block and speed up validation.
The Bitcoin Cash team rejected both of these ideas and they are often cited as their main reasons for splitting with the Bitcoin clan.
What Is Bitcoin Cash Used For?
Bitcoin Cash aspires to live up to Satoshi Nakamoto’s original plan of what Bitcoin should be - decentralised, peer to peer digital cash.
The split between the two camps all started when Nakamoto disappeared, and the remaining people involved started to discuss how to improve Bitcoin’s scaling as it became more popular.
SegWit and the Lightning Network were suggested. But the people who would create BCH turned back to some of Nakamoto’s previous comments on blocksize.
After he implemented a 1 MB blocksize, he explained that the blocksize could be increased if they needed it later. And that was all they needed to hear.
Today, Bitcoin Cash also has smart contract capabilities (just like Bitcoin), oracle services and a small but growing DeFi community.
As one of the most popular cryptocurrencies, it can be bought and traded at most crypto exchanges and some brokers.
Is Bitcoin Cash a Good Investment?
Yes, Bitcoin Cash can be a good investment and a great way to diversify your portfolio when done right.
The truth is that Bitcoin Cash has a market cap of $12,357,201,392 and a 24-hour trading volume of $2,468,510,046, at the time of writing, which makes Bitcoin Cash one of the top 20 traded cryptocurrencies out there.
But what does that mean to investors? We are often bombarded with numbers we hardly understand, so let’s put numbers in perspective.
A high trading volume means high liquidity, or how easily an asset can be bought and sold. Market cap, on the other hand, refers to the value of an asset on the market.
While many factors can affect the success rates of cryptocurrency investment, including demand and supply, market sentiment, crypto news, and tech innovations, the truth is that many big Bitcoin investors believe that Bitcoin Cash is a good investment.
Interestingly, one of the main supporters of Bitcoin Cash is Roger Ver, known as the Bitcoin Jesus, who tweeted in November 2020:
“BCH works as cash.
BTC no longer does.
That’s why Bitcoin Cash is for everybody.”
Should I Invest in Bitcoin Cash Now?
Why should I consider investing in Bitcoin Cash? It’s not only big investors that are interested in Bitcoin Cash investing, though. You can also invest in Bitcoin Cash!
But is accessibility enough for you to invest in Bitcoin Cash? Just because you can invest in Bitcoin Cash, that doesn’t mean you should.
And here, dear crypto investor, we can’t give you a precise answer. Simple because there’s no one-size-fits-all approach to crypto investing and it’s all up to you and your financial goals!
All we can do is help you make an informed decision. And the truth is that Bitcoin Cash provides fast transaction times, low fees, and better scalability than Bitcoin.
Thus, if you believe that Bitcoin is not the only coin worth watching and if you think that larger blocks can improve scalability, then investing in Bitcoin Cash might be the right option for you.
Oh, and though we can’t promise that you’ll make money with cryptocurrency, don’t be surprised that the number of investors who want to have Bitcoin Cash in their portfolios is increasing, including:
- Crypto enthusiasts who believe that Bitcoin Cash is better and more scalable than Bitcoin.
- Investors who are willing to take a risk and invest in Bitcoin Cash and its adoption in the long term.
- Day traders who are betting on possible price swings and crypto interest in Bitcoin Cash.
- Miners who want to escape from Bitcoin and its concentration of hash power.
Would you consider investing in Bitcoin Cash BCH?
Does Bitcoin Cash Have A Future?
Bitcoin Cash is being actively developed and the team continues to add to BCH’s capabilities.
Though their development team is quite fractured (or, if you will, decentralised). They have a lot on their plate.
One of the primary areas BCH continues to push forward with is blocksize. In June 2021, it was announced that on BCH’s testnet, Scalenet, someone managed to mine a gigabyte block with a Raspberry Pi4.
While this is still only at the experimental phase, it has opened up the possibility of even larger blocks in the future, which could enhance speed and transaction costs.
And if the BCH team continues to experiment and then implement such ideas, it is quite likely that Bitcoin Cash will be around for a long time to come.
Is Bitcoin Cash A Good Long-term Investment?
Yes, Bitcoin Cash could be a good long-term investment, but you must be able to withstand the pressure of investing in a volatile asset.
You may also choose to invest in BCH as a hedge against Bitcoin and other cryptocurrencies that were designed to be used for a transactional purpose, such as Litecoin.
One thing should be made crystal clear: Bitcoin Cash wants to be a ‘transactional cryptocurrency’ (we’ll mention this a lot in this article), a crypto that can be easily used to transfer value from one person to another.
It is against the idea of becoming a store of value like Bitcoin. Because of this, it might make Bitcoin Cash a better crypto to trade in the short term.
That said, it should be noted that BCH was one of few cryptos that didn’t break their 2017 all-time high in the 2021 bull run. And that might deserve more looking into.
Is It Better To Buy Bitcoin Or Bitcoin Cash 2021?
So, are you interested in investing in Bitcoin Cash, or do you prefer Bitcoin BTC, the first and most popular crypto asset?
If you are still not sure, let’s list the advantages of Bitcoin Cash investing to help you make an informed decision.
Though Bitcoin Cash is very similar to Bitcoin, with different pros and cons and a limited supply of 21 million coins, Bitcoin Cash is different and may help resolve Bitcoin’s scalability issue.
Bitcoin Cash can handle more transactions per second and has lower fees.
According to BitInfoCharts, the average transaction fee for Bitcoin Cash is around 0.000018 BCH ($0.012), while the average transaction fee for Bitcoin is 0.0002 BTC ($7.52). A huge difference.
And Bitcoin Cash can handle around 25,000 transactions per block. In comparison, Bitcoin processes 1,000-1,500 transactions per block.
Bitcoin Cash is also considered a safe investment that - despite its bigger blocks - hasn’t been hacked since it was launched. In contrast, Bitcoin is still associated with illicit activities and Silk Road.
In the end, however, it’s up to you and your beliefs. Only you can decide if Bitcoin Cash is a better investment than Bitcoin.
Let’s not forget that what works for some investors might be a terrible financial choice for you, so the final decision - whether to invest in Bitcoin Cash or not - is yours!
Should I Invest In Bitcoin Cash Or Litecoin?
According to Jesus Cedeño of CryptoCoinSociety, Bitcoin Cash outranks Litecoin in several areas. Perhaps the most important areas were transaction cost and speed, in which BCH outperformed LTC.
Jesus also noted that Litecoin, like Bitcoin, has a maximum blocksize of 1 MB, while Bitcoin Cash has a maximum blocksize of 32 MB. And this has enabled BCH to be cheaper and faster.
But there are areas where Litecoin may be a better option. Litecoin was also born of Bitcoin and attempted to improve upon it in several ways.
One of the ways they planned to do this was to increase the max supply to 84 million, which is four times larger than BCH.
But perhaps more crucially, Litecoin uses a Scrypt hashing algorithm which is said to be better than BTC’s and BCH’s SHA-256 algorithm. So, it is hard to find a clear-cut winner.
Bitcoin Cash and Litecoin are both highly reputable transactional cryptocurrencies, however, at times, the two have both struggled to remain relevant in an industry where smart contracts, dApps and DeFi are increasingly more decisive on the price of a coin.
Should I Invest In Bitcoin Cash Or Bitcoin SV?
Invest in Bitcoin Cash if you believe in transactional currency with smart capabilities. Invest in Bitcoin SV if you believe in what was originally proposed in Nakamoto’s whitepaper.
Bitcoin SV (BSV) currently ranks 40th in terms of market capitalisation, according to CoinMarketCap, and has a price of $138.
In comparison to Bitcoin Cash, which is priced at $508, BSV is more than three times cheaper, which could be ideal for some.
Bitcoin SV is a fork of Bitcoin Cash. It was created when there was a split within the Bitcoin Cash community over how to further progress (sound familiar?).
In short, the Bitcoin SV fraction split off when it was decided that Bitcoin Cash would introduce new features like smart contracts. Instead, BSV wanted to remain closer to what they interpreted as Nakamoto’s plans - ‘SV’ stands for ‘Satoshi Vision’.
Bitcoin SV could serve as a good hedge against Bitcoin Cash and other transactional cryptocurrencies, however, generally speaking, BCH is far more accepted at this point.
There is also some concern about the leadership of Bitcoin SV, which has close ties to the controversial Craig Wright, who claims to be Satoshi Nakamoto.
Some believe that the split was good for Bitcoin Cash because it removed people from their team who they had trouble working with, including Wright.
Should I Buy Bitcoin Cash Or Ethereum?
While Bitcoin Cash is not seen as a direct competitor to Ethereum, it offers on-chain scaling, which theoretically means it can handle congestion better, which Ethereum has been struggling with.
Congestion can lead to longer waiting times and higher fees and YCharts has captured how volatile Ethereum’s transaction fees have become in May 2021. At points, spiking dramatically.
More recently, Bitcoin Cash has started to support DeFi applications. In a similar way to Binance Coin’s Binance Smart Chain, Bitcoin Cash created their side-chain called ‘Smart Bitcoin Cash’ (or smartBCH).
Formerly known as the ‘Moeing Chain’, smartBCH is compatible with Ethereum’s Virtual Machine (EVM) and Web3 API. And they claim to use EVM and Web3 API at a lower level to ‘fully leverage’ their full potential.
It is billed as being cheaper to use with lower fees and with a throughput of one billion gas every 15 seconds. (BCH’s on-chain scaling probably helps here too.)
But there’s more. Bitcoin Cash is also competing with Ethereum with its ‘Simple Ledger Protocol’ (SLP). The SLP allows users to create new tokens on the Bitcoin Cash blockchain.
So, while BCH may look like an unlikely competitor to ETH, in the course of the next few months and years, it may pick up Ethereum’s slack if it is not able to solve its transaction fee volatility.
Should I Buy Bitcoin Or Bitcoin Cash 2021?
Buy Bitcoin if you want a store of value, buy Bitcoin Cash if you want a transactional cryptocurrency.
If you’re into cryptocurrency trading for the long run, you may prefer Bitcoin as it is widely believed to be a new store of value that could rival gold.
This could mean that Bitcoin is still very far off from its potential value. (The market cap of gold is approximately $11.887 trillion.)
Bitcoin Cash is a transactional currency which is what the team behind the project want it to be.
With Bitcoin Cash, it may be wiser to attempt to make a profit in the short term as they introduce new upgrades, but you can still trade BCH in the long term too.
How Much Could Bitcoin Cash Be Worth? Bitcoin Cash Price Predictions
You may want to know how much Bitcoin Cash could be worth in the years to come before you decide to invest in BCH.
The truth is that nobody knows! The cryptocurrency market is highly volatile and dependent on demand and supply, so it’s hard to give accurate price predictions.
On top of that, the ongoing pandemic and the bearish market it triggered in March 2020 showed the whole world that there’s nothing certain in the financial world.
That said, past performance and data analysis can help investors and traders to make forecast predictions.
So, let’s start with Bitcoin Cash and its performance in the past. When it was launched, Bitcoin Cash had an opening value of around $290, which reached almost $700 the next day. By 20th December 2017, BCH had reached its all-time high of $4,355.62.
Bitcoin Cash Performance (Source: Capital; Retrieved from https://capital.com/trade-bitcoin-cash)
Since then, Bitcoin Cash has been a more stable investment, with one BCH trading at $508 at the time of writing. According to some positive predictions, the value of Bitcoin Cash may double in 2021.
According to DigitalCoin, Bitcoin Cash might range between $820 (max) and $686 (min) by the end of 2021 (which is still an increase on the current price).
We can only wait and see what 2021 holds for Bitcoin Cash investing!
What Will Bitcoin Cash Be Worth In 2025?
Cryptocurrency Price Prediction forecasts that Bitcoin Cash could be worth as much as $6,391 by December 2025, at the highest.
However, most BCH predictions don’t go this high. While WalletInvestor gives a more sober prediction of $3,222 at the highest, this is still too high for some forecasters.
Elsewhere, it looks like a more reasonable estimate would be between 2,500 and 3,000.
The Economy Forecast Agency is the most pessimistic about Bitcoin Cash’s price in 2025, believing it will be $272 at the highest. This is much lower than its current value.
What Will Bitcoin Cash Be Worth In 2030?
By 2030, Cryptocurrency Price Prediction forecasts Bitcoin Cash could be worth as much as $18,227. Coin Price Forecast disagrees and estimates that $3,724 is more likely.
As you can see, Bitcoin Cash price predictions for 2030 are very far apart. The reason is pretty simple, 2030 is still very far away and a lot could happen by that point.
Will Bitcoin Cash Reach $10,000?
Cryptocurrency Price Prediction estimates that Bitcoin Cash could reach $10,000 by 2030. But do note, most price forecasters do not see Bitcoin Cash reaching $10,000 in the next ten years.
Is Investing in Bitcoin Cash Risky?
Yes, investing in Bitcoin Cash, or any asset (especially crypto), can be risky.
Put simply, no highly profitable asset is completely safe, and cryptocurrencies are by no means an exception to this simple rule.
Nevertheless, some things directly affect Bitcoin Cash or any cryptocurrency and, as a result, the safety of investing in Bitcoin Cash.
- A large community of supporters and enthusiasts.
- A development team working on the project.
- Wide use or adoption, i.e., the ability to use Bitcoin Cash to pay for various payments and the ease of buying and selling it.
All three of these above indicators for Bitcoin Cash are at a strong level. Therefore, it can be thought that investing in Bitcoin Cash is safer than investing in most other cryptocurrencies, though not risk-free!
The truth is that Bitcoin Cash has had numerous ups and downs over the years, but still, it has some great opportunities for investors.
Thus, always do your research before you decide to invest in Bitcoin Cash and never invest more than you can lose. Risk management is crucial to help you set stop-limit and stop-loss orders and overcome financial distress.
Conclusion: Is Bitcoin Cash a Good Investment
Should You Invest In Bitcoin Cash?
Invest in Bitcoin Cash BCH or any asset can be very risky if you don’t know what you’re doing, mainly during uncertain times.
You may be asking yourself, “should I buy Bitcoin Cash right now?” So, here’s a tidbit, investing your money doesn’t have to be complicated.
While no investment is risk-free, investing in Bitcoin Cash might generate good returns in the coming years, if you can withstand the ups and downs.
Whether you’re new to Bitcoin Cash investing or just curious about how to make the most of your capital, understanding what to know before investing in Bitcoin Cash BCH is critical.
The below prediction figures outline some of the potential high and low of Bitcoin Cash BCH price prediction forecasts in 2020, 2021, 2022, 2023, and 2025 offered by analysts and industry experts.
Despite its controversial history and unclear future, Bitcoin Cash has managed to become one of the top cryptocurrencies.
So, if you are wondering if you should invest in Bitcoin Cash or not, we assure you that the final decision comes down to you.
- Whether you decide to buy or trade Bitcoin Cash, you should choose a reliable platform, Like eToro.
- Depending on your goals, do not forget that a strict plan and healthy trading routines are crucial, so do not hesitate to explore our site to help you climb the ladder of Bitcoin Cash investing success.
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If you remember anything from Is Bitcoin Cash A Good Investment And Should I Invest In Bitcoin Cash, make it these key points.
- Bitcoin Cash is a hard fork of Bitcoin created in 2017 to address Bitcoin’s shortcomings and scalability issues.
- One of the main differences between Bitcoin and Bitcoin Cash is that Bitcoin Cash has eight times larger blocks than Bitcoin.
- Bitcoin Cash aims to make transactions faster, cheaper, and more reliable across the globe. Today, Bitcoin Cash is accepted by thousands of online and brick-and-mortar retailers worldwide.
- Bitcoin Cash can be a good investment and a great way to diversify your portfolio when done right.
If you liked our article Is Bitcoin Cash a Good Investment and Should I Invest in Bitcoin Cash, please share it with other investors interested in the cryptocurrency sector.
Bitcoin Cash Investing - FAQs
Still have questions on Bitcoin Cash? Perhaps these FAQs will help you.
What Is The Main Purpose Of Bitcoin Cash?
The main purpose of Bitcoin Cash is to serve as a digital payment system, resolve Bitcoin’s shortcomings, and help clients around the world to send and receive funds easily and at low transaction costs.
More recently, it has also moved into smart contracts, DeFi and oracle services.
Why Is Bitcoin Cash Going Up Today?
Bitcoin Cash is susceptible to market changes like most other altcoins. Recently, Bitcoin entered a bull market and dragged most other altcoins up with it.
It should be noted though that Bitcoin Cash did not rise as meteorically as other altcoins did during the bull market of early 2021.
Despite this, it did come out the other end at a higher price than at the beginning, so despite volatility, Bitcoin Cash is more or less on the rise in the long term.
Can You Spend Bitcoin Cash?
Yes, Bitcoin Cash can be spent at a variety of merchants. According to Jamie Redman of Bitcoin.com, in February 2020, 4,392 merchants accepted Bitcoin Cash.
As Bitcoin Cash focuses primarily on being a transactional cryptocurrency and actively seeks out merchants to accept it as a method of payment, this number is only expected to grow.
Why Is Bitcoin Cash So Much Cheaper?
Because of Bitcoin Cash’s larger blocksize it can validate more transactions than Bitcoin. Large blocks mean quicker processing and quicker processing means lower fees.
While Bitcoin has a blocksize of 1 MB, Bitcoin Cash has 32 MB blocks, 32 times larger.
Where Is Bitcoin Cash Accepted?
Bitcoin Cash is accepted by merchants online and offline for goods and services. You can easily buy a product from your laptop or phone, or a drink at a bar.
eGifter is one of the most popular places you can spend your Bitcoin Cash. You can use BCH to buy different gift cards for brands including Apple, Dominos, Uber and Dunkin’ Donuts.
You can also use bitcoinmap.cash to find locations where Bitcoin Cash is accepted. It lists bars, hotels, restaurants and shops.
Ljubljana, the capital of Slovenia, and the city of Medellín, Columbia, appear to have the highest concentrations of merchants that accept Bitcoin Cash.
Why Is Bitcoin Cash Dropping?
Bitcoin Cash dropped after Tesla decided to no longer accept Bitcoin as a method of payment. BCH, like all other altcoins, lost a huge amount of value.
Tesla CEO, Elon Musk, elaborated via Twitter that it was because Bitcoin mining was harmful to the environment.
In the end, though, this will not stop people from buying cryptocurrencies and they will likely recover.
How To Convert Bitcoin Cash To Bitcoin?
You can convert Bitcoin Cash to Bitcoin at a cryptocurrency exchange. The simplest way is if they offer the ‘BCH/BTC’ crypto pair. That way, you will be able to directly convert your Bitcoin Cash into Bitcoin.
If they do not offer this trading pair, you may have to make more than one transaction, which will likely mean paying more fees and not getting the price you wanted.
Will Bitcoin Cash Overtake Bitcoin?
While Bitcoin Cash is a cryptocurrency that has some great investment potential, it’s unlikely for Bitcoin Cash to overtake Bitcoin, considered the most popular and traded digital asset across the globe.
Does Amazon Accept Bitcoin Cash?
No, Amazon does not accept Bitcoin Cash or any other cryptocurrency as a method of payment.
There is some speculation around why Amazon does not accept crypto. Perhaps the most likely reason is that it is still too volatile at this point in time.
If Amazon did start accepting Bitcoin Cash, it would likely increase the price dramatically.
Also, you can buy Amazon gift cards with Bitcoin Cash via eGifter.
What Is The Best Platform To Start Investing In Bitcoin Cash?
The best platform to invest in Bitcoin Cash is eToro that allows you to buy Bitcoin Cash with 0% Commission.
Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk and Past performance is not an indication of future results.