Whether you're new to Bitcoin Cash Investing, thinking of getting back in, or just want a refresher on why invest in Bitcoin Cash — this article is for you.
Cryptocurrencies are the in thing these days when it comes to easy investments, but you need to be careful when selecting the digital coin you want to invest in. There are more than four thousand digital currencies, but only a few have any use in the physical world and thus any value. The rest are just trial and error that try to mimic the major currencies, with a majority being pump and dump projects with no real value.
Bitcoin Cash is among the most important coins in the crypto industry. It is among the top ten highest-rated coins in this market. If you are looking for a coin that has a future and good financial prospect, then you should invest in Bitcoin Cash. There is every reason you should invest in BCH, and this article will highlight a few of those reasons in a short while. Before that, you should first have a brief overview of what BCH is and where it came from.
Bitcoin Cash is a somewhat controversial cryptocurrency. BCH emerged in 2017 as a hard fork of Bitcoin (BTC), the most popular coin with the largest market capitalization. A hard fork is radical changes made on an original blockchain platform’s protocol that significantly changes the functioning of that network. You should, therefore, not confuse between these two coins. BCH was a result of a disagreement among BTC developers and users.
The users and developers disagreed on how the BTC network could be scaled up to accommodate the growing number of users and handle more transactions. Those advocating for more and faster transactions wanted to include a technology called SegWit (Segregated Witness) for more transactions and the lightning network to increase the transactions’ speed. Those against the change argued that that move would significantly alter BTC developer Satoshi’s original idea, so they disagreed, leading to the fork.
Below we cover 15 major reasons why you should invest in Bitcoin Cash and why BCH investing can be so powerful. First, let's start with the hard fact-based reasons to invest in Bitcoin Cash and then we'll transition into some less discussed, but still important, reasons to invest.
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15 Reasons Why You Should Invest in Bitcoin Cash
There are all kinds of reasons why you might want to invest in BCH — probably some you’ve never considered. Here are 15 that we found.
1. Bitcoin Cash is Among the Top Thirty in Market Capitalization
BCH has a market capitalization of about $6 billion. Its current price is $368, with a circulating supply of approximately 18.9 million coins. This number also represents the number of coins mined on this network. Coins that have a high market capitalization are usually good to invest in.
Market capitalization is the value you get when you multiply the total number of coins in circulation or that have already been mined, bearing that with the coin’s existing price.
Coins with a high market cap are, in most cases, more stable when it comes to investments than those with lower market caps. It is also an indication of how quickly you can buy or sell these coins in the crypto market. Since all coins are volatile, meaning that they change their prices rapidly based on the market conditions, a coin with stability or a high market cap will be less susceptible to such changes. This value also demonstrates the growth potential of digital coins.
2. Bitcoin Cash Rides on Bitcoin’s Popularity
Bitcoin Cash, as noted earlier is a hard fork from the Bitcoin network. The same developers who had a hand at building and sustaining the Bitcoin network are the same working on Bitcoin Cash’s network apart from a few that chose to remain with Bitcoin, the mother or parent coin. These developers have managed to convince a significant number of users that Bitcoin Cash is to provide a better alternative to Bitcoin.
In addition to the said improvements, most investors also consider BCH as a potential investment option because it is a consequence of the more successful Bitcoin.
Investors tend to associate its growth potential with that of BTC, but now with better features. This association has continued pushing the value of BCH up since it came into existence back in 2017. The association makes it a worthwhile investment.
3. Popular Crypto Investors back Bitcoin Cash
Bitcoin Cash is backed by popular investors. When cryptocurrencies came into the limelight, very few knew anything about them. However, there are a few individuals that have been following the trends in this industry keenly. It is these early users and investors that influence the direction most popular digital coins will follow.
One of these long-time investors Roger Ver. Roger Ver is one of the earliest investors of digital coins, and especially Bitcoin. He has gone to the extent of baptizing himself as Bitcoin Jesus.
Having zealously promoted and pushed bitcoin to its level, it only makes sense to follow him if he were to support another coin. Roger has been supporting Bitcoin Cash since its inception and has seen it grow to its current value. He still thinks that BCH has a lot of potentials, and continues making massive investments in the same.
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4. Bitcoin Cash has recorded an Increased Number of Investors
Bitcoin Cash has a lot of people investing in it. Any cryptocurrency can be worth so much today and lose all its value the next day. Ideally, digital coins are only as valuable as their users or supporters determine them to be.
However, coins that have established their roots provide value that remain relevant for a long time. Bitcoin Cash is one of the coins that has maintained its value and has more and more investors investing in it. These investors fall into various categories.
Some have a strong belief that BCH will eventually be better than Bitcoin, thanks to its ability to scale up and allow more transactions. Some are speculators who project that the price of BCH will increase. In addition, there are day traders who bet on price swings and the miners looking forward to escaping from the limiting concentration of hash power on the Bitcoin network.
These investors play a vital role in keeping this coin relevant and hence maintaining its growth curve. This aspect is an important consideration to determine whether or not to invest.
5. BCH Has a Lot of Practical Uses
BCH developers identified the weaknesses and flaws in the Bitcoin network and endeavoured to eliminate them while making the BCH network more viable for everyday use. Bitcoin enthusiasts refused to have the block size of Bitcoin expanded from 1MB.
They argued that the size served as a levelling factor of all users on the network irrespective of computers used. This argument, though is now in question following the introduction of ASIC mining rigs. In a bid to improve the functioning of the network, Bitcoin Cash expanded the size of the blocks to between 8MB and 32MB.
The larger blocks have made it possible for users to transact more and faster. The BCH network can now process more than 25,000 for every block far much better than that of Bitcoin that supports just 1,000 to 1,500 transactions for the same block. This ability gives BCH more practical uses in processing than most coins and, most importantly, more than Bitcoin, making it a worthwhile coin.
6. Bitcoin Cash is Considered Safe by Many
Bitcoin Cash is considered safe. Many investors consider Bitcoin Cash a very safe digital currency and hence a viable investment option. Despite its developers increasing the size of its blocks, this cryptocurrency has remained stable and secure since they created it back in 2017.
Unlike Bitcoin, which experienced some hacking incidences and is associated with the dark web, Bitcoin Cash has never been hacked and is rarely used for illicit purposes.
Read More: Is Bitcoin Cash a Good Investment?
7. Bitcoin Cash Has Shown Stable Growth
Bitcoin Cash, like Bitcoin, has been growing steadily since it was created and has shown healthy stability not common with most cryptocurrencies.
Upon its inception, this coin’s value was at about $290. Due to the excitement of having a fork from Bitcoin that was showing tremendous growth at the time, BCH shot up more than tripling the next day. By the end of 2017, this coin has already hit its highs of up to $4000. It later levelled off and for a while oscillated around the $1000 mark. It has since dropped under $400 but investors remain hopeful for its future.
Looking at its growth curve, it is safe to say that this coin will continue growing, albeit not as fast as Bitcoin but will reach some very high heights making it a worthwhile investment option. Its stability is mainly due to its wide use and its level-headed team of developers and supporters.
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8. Bitcoin Cash is Used by Many Retailers
Bitcoin cash is being used by a lot of retailers. The popularity of a digital coin is shown by the number of retailers using the coin for payments and as payment for their goods and/or services.
The more the retailers, the more the popularity of the coin and the more it increases in value. There are so many cryptocurrencies that claim to provide such services, but only a few have the features and qualities to qualify for being a means of exchange. Bitcoin Cash, thanks to its features and a dedicated team, has gained this acceptance.
More than 900 online retailers and about 700 brick-and-mortar stores now accept BCH as payment for their goods and services and use the same to buy their wares from others accepting this coin.
BCH has shown good prospects of becoming a mainstream currency if it proceeds in the manner it is going with at the moment. You can consider having some BCH coins as part of your portfolio and hope for the best.
9. BCH Network Charges Lower Fees
BCH charges significantly lower fees. The essence of all cryptocurrencies is to replace the fiat system that governments and banks control.
Without a central authority, the market will define and determine the fees that users pay for transactions and will not have their fate in the hands of a few people that have proven to be greedy since time immemorial. High network fees were one of the shortcomings of the original Bitcoin and its slow acceptance in the mainstream market.
10. Reduced Cost of Processing
Bitcoin Cash, with its larger blocks has significantly reduced the cost of processing transactions, making it a viable option than many conventional payment options like Visa and banks that usually charge very high fees. Currently, the cost of a transaction on the BCH network stands at just $0.20 or a mere 20 cents.
This fee is affordable to almost anyone who wishes to transact on this network. It has played a role in drawing many users giving value to this coin. The team behind it continues to improve the network and aims to maintain such low fees if not reducing them even further.
11. Bitcoin Cash has a Limited Supply
BCH has a limited supply. The value of money or fiat currency was once pegged to the gold equivalent at that time. Gold was not only a rare metal but very valuable with a lot of practical uses. It is for this reason that people pegged the value of their paper money to this metal. Paper money is quickly losing its value since central banks and governments print money in excess without any gold back up. It is for this reason that cryptocurrencies are gaining a lot of traction in the financial world.
Cryptocurrencies, however, are not pegging their value on any physical element. They are instead using their limited supply to create this value. Bitcoin Cash, for instance, has a limited maximum supply of just 21 million coins. There will never be a time when the number of coins will exceed this mark.
With its increased practical use cases and the freedom it brings to the financial world, it is bound to be a force to reckon with soon. The limited supply makes it scarce yet in demand, just like physical gold and hence its value.
12. BCH is Reliable
Bitcoin Cash has proven to be reliable. The main reason why the Bitcoin community was disagreeing was the issue of speed. A section of them argued that it was not necessary to compromise security to increase speed, while others believed that speed would be necessary as more users joined the network.
Ultimately, the time had to be divided with no consensus reached. The team supporting increased speed on the network created BCH. With increased speed, and still being secure, BCH has become very reliable in terms of processing transactions. Users on this network enjoy in addition to the shorter transaction times, very low fees.
They do not have the need to do a lot of checks and balances on their finances based on the digital currency cost since they have the confidence of low fees. These aspects have made BCH reliable to many users hence gaining widespread use and increasing in value as a result. Reliability is an aspect worth considering in any crypto before investing in it, and BCH has proven beyond doubt so far that it has that.
13. Bitcoin Cash has Multiple Ways to Invest
BCH provides multiple investment options. There are multiple ways in which you can invest in BCH. If you have a high-risk appetite, you can consider going for short-term trading. Multiple platforms offer this option considering BCH popularity, but you have to be careful to select a genuine one.
You stand to earn more profits with this kind of trading, but you have to sharpen your trading skills, including your ability to read the crypto market. The other option is going for long-term investment.
This kind of investment requires that you have a portfolio of assets, then leverage their performance to balance on profits and losses. Bitcoin Cash has already proven to be a stable cryptocurrency and hence a viable asset to include in your investments. This method is generally less profitable but with reduced risks. Prospects show that the future of BCH is promising, so you can consider it as one of your coins to include in your portfolio.
If you do not want the hustle of having to follow market trends and all that, you can instead invest in Bitcoin Cash investment trusts. These trusts operate in the same manner as for regular trusts but now using cryptocurrencies. You simply buy shares in terms of BCH and then leave the management work to them. You will never in any way be required to have any input in the management work. All you need to do is to wait for your profits.
This approach eliminates the stress involved with constantly checking the market but reduces the profits you are bound to get since you have to pay some commission to the trusts.
Read More: How to Invest in Bitcoin Cash
14. Bitcoin Cash is an Advancing Technology
Bitcoin Cash developers are working on new technologies. While most cryptocurrencies are just pump and dump projects with no real teams backing them up, Bitcoin Cash is a serious project with serious developers focussed on improving its network through and through.
It all started with the need to scale up transactions on the Bitcoin network, and to ease the process of completing transactions. In 2021, these developers are keen on introducing new technologies like producing 256MB blocks and double-spend proofs that will significantly enhance the security of this network.
Developers like Jonathan Toomim among others are at the forefront of having BCH process transactions at a much higher speed than it currently does. Others are looking forward to enhancing the chained-transaction limit that will see gaming and gambling apps. There are still a lot of other developments that you should expect from the team behind this coin including having conventional payment widgets included in the network that will see users make payments easily.
Expect established networks like AnyHedge, and Electron Cash to be part of the team to make BCH even more available. These developments are likely to enhance the value of BCH significantly and hence a good investment option.
The fact that there is a Bitcoin Cash development fund is also an excellent reason to believe that significant developments will happen on the BCH blockchain. Miners that are part of this fund promised to give a portion of their mining proceeds towards the fund. They aim to have this money, or rather funds go towards developing more and advanced applications.
The more advanced the BCH blockchain becomes, the more use cases it will have and hence more value for both users and investors.
15. Bitcoin Cash is Listed in Multiple Exchanges
BCH is now listed in major exchanges. Cryptocurrencies came with their listing platforms. Like the way conventional stocks are listed on stock market platforms such as the New York stock exchange and others, cryptocurrencies are listed on online exchanges. Some of the mainstream exchanges include Binance, eToro, Coinbase, and Paybis. Being listed on such exchanges is vital for the marketing and liquidity of a particular digital coin.
BCH is one of the coins that are listed in the most popular and trusted exchanges, such as Binance, Coinbase, and eToro. Being listed on these platforms indicates the trust that cryptocurrency users and enthusiasts have in this coin.
It also means that you can easily buy and sell this coin, especially if you are a short-term trader. Listings should, in that case, guide you on the best digital coin to buy, just in the same way as popular and valuable stocks are listed on serious stock exchange platforms.
With all this information, you must still ask yourself, ‘why should you invest in Bitcoin Cash today? This article has tried its best to give you viable reasons for investing in BCH, but the ultimate decision lies with your judgment. You must take your time to go through all the possible reasons, weigh your risk appetite, and then make an informed decision.
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