Is Bitcoin Cash Worth Buying In 2023?

Last Updated December 29th 2022

6 Min Read

Is Bitcoin Cash worth buying in 2023? If you are looking to invest in BCH this year, this is certainly one of the questions you will be asking.

Despite the fact that BCH is among the top ten cryptocurrencies in terms of market capitalization, there are some factors that you should consider before buying.

One of them is whether it will be profitable to invest in Bitcoin Cash in 2023. This is where we will help you make an informed decision.

In this article, we will give you a comprehensive guide to Bitcoin Cash (BCH) investment. We will cover the factors that will influence its value in 2023 and what it means for BCH holders.

Let's start with the basics.

What Is Bitcoin Cash?

Bitcoin Cash is a fork of Bitcoin. The latter was designed to be decentralized, i.e., independent of any central authority like banks or governments.

Bitcoin wanted to give users full control of their money. However, it soon became clear that the limited number of transactions would mean that each transaction would have to cost more than the average transaction fee.

This would mean that Bitcoin is not the perfect currency as it was envisioned at birth.

The problem became more evident when the number of transactions increased exponentially in 2017, and fees also rose sharply, leading to long periods of unconfirmed transactions. Bitcoin Cash solves this problem by increasing the size of blocks, i.e., the number of transactions per block.

The fact that BCH is faster than BTC gives it an edge, making it an alluring candidate for investors.

Another key factor that will influence the future of Bitcoin Cash is its limited supply. Bitcoin Cash has a supply of 21 million, just like Bitcoin.

This means that the supply is not expected to increase or decrease beyond the predetermined limit. As a result, the demand for it will increase as the supply decreases. But is it worth buying in 2023?

Check Out: Pros and Cons of Investing in Bitcoin Cash

So, Should You Buy Bitcoin Cash In 2023?

It might be worth giving Bitcoin Cash some consideration in your search for profitable investment opportunities. If you are looking to invest in cryptocurrencies as a long-term plan, it might be one of the best options for you.

Despite the fact that Bitcoin Cash is facing stiff competition from cryptocurrencies like Dogecoin, Ripple (XRP), and Litecoin (LTC), there is no denying that it has made significant progress since its inception in 2017.

As such, investing in Bitcoin Cash (BCH) will certainly give a positive return. More importantly, its value is still on the rise. The price of Bitcoin cash has increased from $340 at the start of January 2021 to $368 at the time of writing.

For instance, the value of BCH remained relatively low from 2018 to late 2020 after achieving its all-time high in 2017. The coin has had trouble going back to its highest value which makes it less appealing for long-term investments.

Otherwise, if you do decide to buy, ensure that you don't invest more than what you can afford to lose.

You should also note that the price of Bitcoin Cash (BCH) will fall sharply if a new cryptocurrency is introduced to solve the problem it claimed to have fixed. However, this is likely to happen only in the coming years. So, experts think it is worth buying and holding on to your investment for some time to get a good return on your investment.

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

Why Should I Buy Bitcoin Cash?

There are a number of reasons why you might want to buy Bitcoin Cash.

First, it is a good hedge against Bitcoin. Bitcoin had a tremendous run in 2021, and its value is likely to rise further in the future. So, if you have already invested or plan to invest in Bitcoin, you might want to consider buying BCH as well.

Second, although Bitcoin Cash doesn't have the same momentum as other cryptocurrencies, it is gaining ground since its inception in 2017. It has more than ten trading platforms that support it, and investors are increasingly opting for coins with rapid growth.

The trading volume of Bitcoin Cash has also increased from $96 million at the beginning of December 2020 to about $5 billion at the beginning of 2021.

Third, Bitcoin Cash is more profitable compared to other cryptocurrencies. This has made it the most successful Bitcoin fork with a market capitalization of $6 billion at the time of writing.

Fourth, there are only 21 million Bitcoin cash tokens in circulation which means that the supply is limited and won't increase in the future.

This makes it unique among cryptocurrencies and a good bet for an investor looking to maximize returns on their investment.

Fifth, Bitcoin Cash is more accessible than other cryptocurrencies largely because it can be traded on major exchanges such as eToro, Binance and Coinbase.

Sixth, the transaction fee of Bitcoin Cash is lower compared to that of its parent Bitcoin. This means that BCH has a better chance of becoming widely accepted once mass adoption becomes a reality.

Finally, investors are bullish on Bitcoin Cash because it is more scalable than its parent cryptocurrency.

Check Out: 15 Reasons Why You Should Invest in Bitcoin Cash Today

Risks Associated With Bitcoin Cash Investment

While we believe Bitcoin cash is a great investment, you should be aware of the significant risks associated with it.

First, BCH value is subject to fluctuations that make it a high-risk investment. For instance, in 2017, the value of BCH jumped from around $531 at the start of November to its all-time high of $4,355.62 on December 20, 2017. However, by February 2018, the price had dropped to less than $1,000 per coin.

As a result, you might end up investing at the wrong time and losing your money.

Second, Bitcoin Cash is not supported by all exchanges, and this puts you at a huge risk of being unable to trade it when you need to.

Third, the technology supporting Bitcoin cash might be overtaken by other cryptocurrencies. For instance, there are already two new coins (Bitcoin Gold and Bitcoin Diamond) that have been introduced to rival Bitcoin cash.

This means that if other forms of cryptocurrency are more attractive, it might not be possible to profit from BCH investment in the future.

Fourth, there is a risk associated with hacking and theft of cryptocurrencies. Most digital currencies have lost millions through hacking, and this has made investors shy away from them.

Fifth, BCH is not regulated like other investments. This means that you might end up losing your money when the government decides to crack down on cryptocurrencies.

Sixth, it has a high probability of being replaced by other digital currencies because they are in direct competition with each other. For example, Bitcoin Cash was introduced after Bitcoin cash was rejected by some investors who didn't like the idea of a Bitcoin fork.

However, other cryptocurrencies with better features might replace it in the future, and you will lose out completely if you are not careful.

Is It A Good Time To Invest In Bitcoin Cash?

If you are thinking of investing in Bitcoin Cash, there really is no perfect time. But if you are a long-term investor then buying during a dip and holding it till you make a profit is an option you may consider.

Conclusion: Is Bitcoin Cash (BCH) Worth Buying?

In summary, Bitcoin cash is a good investment if you are looking for a coin that offers high profitability. Investors have been making huge returns by investing in the coin, and this means it is here to stay. However, there are significant risks associated with buying Bitcoin cash or any other digital assets.

You should be careful not to invest more than you can afford to lose. This is why crypto experts believe Bitcoin cash should be a part of your investment portfolio but not the main holding.