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Pros and Cons of Investing in Bitcoin Cash, Will It Be a Millionaire Maker?

Last Updated November 19th 2020

Pros and Cons of Investing in Bitcoin Cash, Is it Good to Invest in Bitcoin Cash?

Advantages and Disadvantages of Bitcoin Cash (BCH) Investing

Learn more about the pros and cons of investing in Bitcoin Cash pushing you ahead to know if it is a good idea to invest in Bitcoin Cash BCH.

Interested in Bitcoin Cash investing? Wondering about the pros and cons of investing in Bitcoin Cash and its potential to be a millionaire maker? Here is all you need to know about BCH investing.

We at Trading Education are here to present the advantages and disadvantages of investing in Bitcoin Cash to help you make an informed decision and decide for yourself if Bitcoin Cash is worth investing in.

Given that Bitcoin Cash is a popular coin doing well in the market - currently ranking seventh by market capitalisation - it’s clear that Bitcoin Cash has numerous pros and can be a millionaire maker. At the same time, the cons of Bitcoin Cash must be considered as well to help investors make accurate crypto predictions. 

So let’s dive into the complexities of Bitcoin Cash - one of the most controversial coins in the cryptocurrency sector.

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What Is Bitcoin Cash?

So, what is Bitcoin Cash in the first place? Bitcoin Cash is a cryptocurrency launched in 2017 as a fork of Bitcoin in order to resolve the scaling problems caused by Bitcoin’s own popularity (or when the backend can’t handle the growing amount of work and users).

Here we should note that a hard fork refers to a significant change to a network’s protocol that leads to the development of two blockchains. Interestingly enough, the last block that Bitcoin and Bitcoin Cash shared was Block 478558.

Bitcoin Cash was designed, as stated above, to help Bitcoin resolve its scaling problems and improve its speed and effectiveness. Bitcoin Cash’s blocks were designed eight times (8 MB) larger than Bitcoin and further increased to 32 MB. 

Larger blocks can increase transaction verification times and allow the network to handle more transactions per second.

In contrast, Bitcoin has blocks of 1 MB, which aims to improve security instead of speed. The problem is that Bitcoin processes only about seven transactions per second, with 1-MB blocks added every 10 minutes. This makes Bitcoin inefficient for a global economy, especially when compared to Visa and other payment methods.

Though Bitcoin has various notable forks, including Bitcoin XT, Bitcoin Classic, and Bitcoin Gold, Bitcoin Cash is still the largest Bitcoin fork by market cap.

Bitcoin Cash’s native currency BCH is much cheaper than Bitcoin (BTC). One BCH is trading at $247.63, compared to BTC trading at over $17,000 - a fact that makes Bitcoin Cash an attractive investment among crypto enthusiasts.

Have you considered investing in Bitcoin Cash?

The Pros of Investing in Bitcoin Cash

pros of investing in bitcoin cash

What are the benefits of investing in Bitcoin Cash BCH? 

With its innovative roadmap, it’s clear that Bitcoin Cash has stirred up the cryptocurrency community. And even though Bitcoin Cash can’t compare to its ancestor Bitcoin in terms of market cap, the truth is that there are various pros of investing in Bitcoin Cash. 

So here's a quick look at the pros of investing in Bitcoin Cash.

✅ Bitcoin Cash is decentralised:

Just like Bitcoin and other cryptocurrencies, Bitcoin Cash’s value lies in the fact that the network is decentralised, eliminating the need for central banks and taking monetary supply out of the hands of authorities. With nodes being spread globally, Bitcoin Cash is also immune to political attacks, which is a major pro of BCH investing.

✅ Bitcoin Cash is scalable:

One of Bitcoin Cash’s main advantages compared to Bitcoin is its scalability. The team behind Bitcoin Cash is quick to implement changes and make it more scalable, which means that more people can execute transactions and payments all at the same time. As of November, 2020, Bitcoin Cash has a block size of 32 MB (as per CoinMarketCap). High scalability means that Bitcoin Cash’s future potential for adoption is also high.

✅ It is highly efficient:

One of the main pros of Bitcoin Cash is its high efficiency. With much larger blocks than Bitcoin, Bitcoin Cash can record more transactions in each block and make payments faster and at lower costs compared to Bitcoin. The team behind Bitcoin Cash has set a clear 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.

✅ Bitcoin Cash has low transaction costs:

With the increase of the overall scalability of Bitcoin Cash, validation times and fees of the transactions decrease. Commissions for a transaction of 236 bytes may cost senders as little as $0.001-$0.008, as reported by Bitcoin.com.

✅ Bitcoin Cash is highly popularised:

Even though Bitcoin - the origin of Bitcoin Cash - is still one of the most popular coins in terms of trading volume and market cap, we can’t ignore one of the biggest pros of Bitcoin Cash investing: its popularity. Bitcoin Cash has been popularised by many crypto gurus, including Roger Ver, known as the Bitcoin Jesus. Ver is trying to convince the world that Bitcoin Cash is the true Bitcoin, particularly if Bitcoin continues to struggle with scalability issues and loses its dominance over other coins.

✅ BCH is easy to acquire:

Bitcoin Cash’s native currency BCH is easy to acquire. It is listed on top exchanges like eToro, which drives mass adoption and enhances its investment potential in the cryptocurrency market.

The Cons of Investing in Bitcoin Cash

cons of investing in bitcoin cash

Though Bitcoin Cash has various advantages over Bitcoin and other cryptocurrencies. However, like any investment, putting your money into Bitcoin Cash BCH isn't risk-free.

So here's what you should know about the risks of investing in Bitcoin Cash.

❌ Bitcoin Cash has low adoption:

Despite Bitcoin Cash’s popularity and potential, Bitcoin Cash has relatively low adoption. Compared to Bitcoin, Bitcoin Cash still doesn’t have much investor confidence and shows lower market penetration. Even though Roger Ver is trying actively to promote Bitcoin Cash, mass adoption is still low. And we all know that adoption rates are crucial to drive the growth of any cryptocurrency.

❌ Bitcoin Cash has branding issues:

One of the major cons of investing in Bitcoin Cash is its branding issues, which can have a negative impact on investor faith. Bitcoin Cash is struggling to distinguish itself from Bitcoin and has also had several splits, including Bitcoin SV. While colourful Roger Ver is trying hard to support Bitcoin Cash and its brand name recognition, the truth is that Bitcoin Cash has a long way to go.

❌ Bitcoin Cash mining is less profitable:

The network’s computing complexity is a big disadvantage as it impacts the speed of extraction of data. In fact, Bitcoin Cash mining is similar to Bitcoin mining. The main difference is that Bitcoin Cash miners get less profit, which may affect their motivation. And while you don’t have to be an IT specialist or a miner to invest in Bitcoin Cash, it’s not a secret that mining affects the value of any cryptocurrency.

❌ BCH has lower liquidity than BTC:

If we consider on-chain transaction volume and volatility of daily returns among other financial factors, it’s clear that Bitcoin Cash transactions are fewer than Bitcoin transactions. This means that BCH has lower liquidity compared to BTC, with BCH pairs being traded less than BTC pairs - a drawback that may affect future prices and mass adoption.

 

Is Bitcoin Cash a Good Investment?

Yes, Bitcoin Cash has proven to be a good investment, currently ranking seventh by market cap - a significant fact that increases its investment potential. 

Though some critics do not consider Bitcoin Cash a good investment in the long-term but a speculative tool in the short-term, figures show that Bitcoin Cash is growing. Note that at the time of writing, Bitcoin Cash has a 24-hour volume of $1,925,093,750.

bitcoin cash price  chart

Given that Bitcoin Cash is one of the most prominent forks of Bitcoin, more and more investors are taking interest in this coin. BCH is a desired asset, with one BCH trading at $247.63 as of November 19th, 2020. 

After all, Bitcoin Cash is an ambitious project that aims to replace Bitcoin. As Ver recently tweeted: ”Imagine investing in Bitcoin today, but not realizing it was always meant to be cash. Bitcoin Cash” 

As such, investing in Bitcoin Cash has a promising future, especially for those who believe in the future of cryptocurrency trading. According to some predictions, BCH could reach $320 by the end of 2020 - a year that has been turbulent not only for investors but economies worldwide. 

Roger Ver, in particular, believes that Bitcoin Cash may even double in price in 2021.

Other crypto investors also suggest that BCH may witness an upward trend and hit new highs. DigitalCoinPrice is one of the leading platforms that have announced a possible bullish upcoming year for BCH, as well as positive outlooks for 2021-2025.

Put simply, Bitcoin Cash BCH is low-risk investment with lots of potential rewards. It’s something you should definitely do some research before you consider adding BCH to your portfolio.

Is Bitcoin Cash BCH a Safe Investment?

Yes, it can be assumed that investing in Bitcoin Cash is a safe investment. This is based on three factors: adoption, development, and support.

To be more precise, one of the factors that may affect Bitcoin Cash’s longevity is its practical use or user ability to pay for goods and services. The good news is that Bitcoin Cash has real-world applications and is accepted by more than 945 online and 670 brick-and-mortar retailers, which increases its investment potential.

The other two factors that may affect Bitcoin Cash as a safe investment - an active development team and a large community of supporters - are also at a good level. As stated above, Bitcoin Cash has an impressive media presence among Bitcoin investors, with controversial Roger Ver being an active advocate. 

That being said, cryptocurrency investing is a high-risk financial venture.

Is Bitcoin Cash Investing Worth It?

Yes, investing in Bitcoin Cash can be worth it. Simply because Bitcoin Cash is the most widely adopted fork of Bitcoin that is growing in terms of market cap and trading volume! 

Moreover, its developers and supporters have numerous ambitious plans for its future and scalability applications.

Though Bitcoin currently makes up more than 50% of the entire crypto industry, many investors prefer altcoin trading. Investor Brian Kelly, for example, once said that Bitcoin Cash is a must-own crypto.

That said, although investing in Bitcoin Cash is easy and comes with numerous pros, that doesn’t mean you should invest in Bitcoin Cash.

Before you start investing in cryptocurrencies you should develop an investment strategy and decide if you are more interested in short-term trading or long-term investing. Note that many investors consider Bitcoin virtual gold and a great asset for long-term investing, claiming that Bitcoin Cash is simply more suitable for short-term trading, as well as practical use of cryptocurrency without delays. 

How Much Should I Invest in Bitcoin Cash?

The general rule in the crypto investing sector is to invest only money you can afford to lose and never risk more than 1% of your account on a single trade.

You should also consider the risk-reward profile of Bitcoin Cash and develop a successful risk management strategy to reduce risks and potentially increase profits.

Due to the volatility of the market, some financial experts suggest that one should invest only up to 5% of their capital in cryptocurrency.

After all, the volatility of the cryptocurrency market is notorious. Take Bitcoin, for example. Buying a TV for $500 might have cost around 250 bitcoins a decade ago  (for example, in December 2011), and just a small fraction of Bitcoin now.

Will Bitcoin Cash Be a Millionaire Maker?

With a market cap of $4,578,427,768 USD, we can say that Bitcoin Cash is already a millionaire maker.

If you were one of the investors who had Bitcoins before it split into Bitcoin Cash in 2017, then you’d have boosted your profit by receiving Bitcoin Cash, for sure. It’s a fact that when a hard fork occurs, holders of the original coin who have private keys will have access to assets on both chains.  

If you are thinking about investing in Bitcoin Cash now, remember there’s a high degree of risk. If you have bought Bitcoin Cash for $75.03 on December 15, 2018, for example, selling them today would have delivered a profit of around $200. The goal here is to wait for prices to rise and exchange for dollars. 

Though price predictions are mainly speculative due to the high volatility in the crypto market, the value of BCH may increase further in the years to come as scarcity promotes growth. And we all know that just like Bitcoin, Bitcoin Cash has a limited supply of 21 million coins, with a currency circulating supply of 18,576,031 coins.

Now you know the pros and cons of investing in Bitcoin Cash. If you’re feeling inspired enough to invest in BCH, you may be pleased to know that eToro provides the ability to invest in crypto assets, inclduing Bitcoin Cash, and CFDs trading on up to 90+ cryptocurrencies.

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Key Points

  • Bitcoin Cash is a fork of Bitcoin launched in 2017. In fact, Bitcoin Cash is one of the most popular forks of Bitcoin.
  • Bitcoin Cash was designed with larger blocks than Bitcoin to resolve Bitcoin’s scalability issues and make transactions faster and more effective. 
  • Bitcoin Cash has numerous pros that make investors believe that Bitcoin Cash will go in a totally different direction than Bitcoin. Some of the benefits of investing in Bitcoin Cash include low transaction fees, faster times, and high scalability levels.
  • Though many believe in Bitcoin Cash’s new features and roadmap, claiming it may replace Bitcoin, there are certain cons investors should consider. Some disadvantages of BCH include branding issues, low adoption, and high volatility. 
  • While Bitcoin Cash may be a millionaire maker, one should consider the risk-reward profile of Bitcoin Cash and decide for themselves if investing in Bitcoin Cash is suitable for their financial goals and expertise. 

 

Would you consider investing in Bitcoin Cash or other cryptocurrencies?

If you enjoyed reading our article Pros and Cons of Investing in Bitcoin Cash, Will It Be a Millionaire Maker, please share with anyone who might be interested in Bitcoin Cash and cryptocurrency investing.

Should I buy Bitcoin Cash or Bitcoin? 

It’s down solely to your investment goals and beliefs. Note that some of the main advantages of Bitcoin Cash over Bitcoin is its increased scalability, cheaper transactions fees, and faster processing times. On the other hand, Bitcoin ranks first in terms of market cap and has spreading name recognition. Whether you decide to buy BCH or BTC, do not forget that cryptocurrency investing is a high-risk investment.

Disclaimer: Cryptocurrencies are highly volatile.

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