Is Bitcoin Cash A Crypto Worth Considering In 2022? BCH Investing Guide 2022
What is Bitcoin Cash? What’s the difference between Bitcoin (BTC) and Bitcoin Cash (BCH)? Is it worth investing in BCH in 2022?
If these are some of the investment questions on your mind, then this is the right place for you.
Bitcoin Cash is one of the top cryptos to invest in, but don’t take that on word alone. You need a thorough understanding of the asset before you get involved if you want to avoid nasty surprises.
Keep on reading to find out more about one of the major players in the crypto sector: Bitcoin Cash.
If you want to invest in Bitcoin Cash (BCH) quickly and easily, with 0% commission, check out eToro Exchange!
What Is Bitcoin Cash?
Bitcoin Cash is a popular peer-to-peer digital payment currency that facilitates cross-border transactions at low costs. It primarily aims to be a digital currency.
One of the major pros of investing in Bitcoin Cash is that transactions are completed without the involvement of central banks and intermediaries (middlemen).
One of the most appealing aspects of Bitcoin Cash is that it was created in 2017 as a fork of Bitcoin (hence the name!), the biggest and most well-known crypto in the market.
What Does Bitcoin Cash Do?
Bitcoin Cash was created to improve Bitcoin’s scalability by allowing more transactions to be processed in a single block.
Now here’s the most crucial difference between Bitcoin and Bitcoin Cash. Bitcoin has 1 MB blocks while Bitcoin Cash was created with blocks 8 MB in size, which was further increased to 32 MB.
Here we should mention that the Bitcoin scalability problems were triggered by its own popularity: the more people use it, the longer and more expensive it becomes to process a transaction.
Nevertheless, there are more similarities than differences between the two: both are proof-of-work and employ mining algorithms, both use SHA-256 and are capped at 21 million coins.
But two other differences that are worth mentioning are:
- Bitcoin Cash is not part of the lightning network. A second-layer, off-chain solution for transacting Bitcoin (and Litecoin).
- Bitcoin Cash did not adopt Segregated Witness (SegWit). A process of removing signature data from Bitcoin transactions so more could fit inside a block.
These two features were first proposed in the Bitcoin community and were instrumental in leading the two camps, Bitcoin and Bitcoin Cash, to go their separate ways.
As time goes by, we will likely see many more changes. A key area we are likely to see this is with smart contracts and DeFi as they become increasingly important to the crypto economy.
Would you consider investing in Bitcoin Cash?
The History of Bitcoin Cash
The history of Bitcoin Cash is veiled in controversy. Amidst discussions and proposals to resolve Bitcoin’s scalability problem, two major solutions were proposed:
- To separate addresses from signatures for each transaction (SegWit).
- To increase the maximum block size, which was proposed by the team behind Bitcoin Cash.
Developers launched BCH in 2017 and the coin debuted with a high price of up to $900 on major exchanges.
And in December 2017 - at the height of the first major crypto bull run - Bitcoin Cash reached its all-time high of $4,355.62.
Nevertheless, the development of Bitcoin Cash itself sparked numerous debates because, in 2018, Bitcoin Cash split into Bitcoin Cash ABC (BCHA) and Bitcoin SV (BSV), also known as ‘Bitcoin Satoshi Vision’.
Note that Bitcoin Cash ABC uses the original Bitcoin Cash client and has incorporated changes like the Canonical Transaction Ordering Route, while Bitcoin SV is led by Craig Wright who rejected the incorporation of smart contracts.
Perhaps the situation wouldn’t have been too embarrassing for Bitcoin Cash if the two factions didn’t start a hashing war.
In short, some of the Bitcoin SV community wanted to completely obliterate Bitcoin Cash by using their hashing power to 51% attack Bitcoin Cash’s chain.
They planned to discourage miners from working on Bitcoin Cash by only mining empty blocks in the hopes that it would incentivize miners to work on BSV instead.
In the end, Bitcoin Cash managed to survive the attack, having attained more hashing power than Bitcoin SV primarily from Bitcoin mining allies.
Bitcoin Cash ABC, what was left of Bitcoin Cash after the Bitcoin SV split, was later split one more time in 2020 to become Bitcoin Cash ABC and Bitcoin Cash Node.
Today Bitcoin Cash Node is referred to as Bitcoin Cash and what remains as the core of the project and continues to use the same branding and ticker symbol (BCH).
Bitcoin Cash ABC is in the process of rebranding to ‘eCash’ (XEC) according to Cointelegraph, and will have only two decimal places instead of eight and will introduce a proof-of-stake consensus layer.
While it all looks quite scandalous on the outside, some argue that Bitcoin SV’s split from Bitcoin Cash was a good thing because it removed people from their group who disagreed with their approach.
How Does Bitcoin Cash Work?
Bitcoin Cash uses a peer-to-peer network of computers to support the decentralised nature of the system.
We should note again that the block size of Bitcoin Cash has been increased to 32 MB, which facilitates transactions, processing times, and fees.
That’s right! Because of its bigger blocks, Bitcoin Cash can offer low transaction fees and faster processing times.
Moreover, as stated by Roger Ver - one of the major proponents of Bitcoin Cash - It is closer to the original vision of Satoshi as cash for the world.
Simply because increased block sizes will enable Bitcoin Cash to be used as a medium for everyday payments and help it compete with Visa and other cross-border payment systems!
That said, similarly to Bitcoin, Bitcoin Cash employs a proof-of-work (PoW) consensus mechanism to mine new coins and is mined by Bitmain, one of the leading crypto miners.
If you are new to the cryptocurrency sector, we should mention that mining is the process in which transactions are verified and added to the public ledger.
Mining is also the process in which new coins are introduced in the existing supply without the need for central banks or financial authorities.
It’s worth noting that Bitcoin Cash is capped at 21 million coins.
Unlike fiat currencies, Bitcoin Cash is not printed by governments, which reduces the risk of inflation and devaluation. At the same time, this scarcity makes it an attractive investment in the long term.
What Is BCH?
BCH is the ticker symbol of Bitcoin Cash. As stated above, there is a limit of 21 million coins, with 18.9 million coins currently in circulation, as per CoinMarketCap.
BCH is accepted in more than 7,000 physical locations and adopted by a wide range of online services.
Experts claim that it also brings support for different payment platforms and offers a point-of-sale solution for business ventures.
That said, though Bitcoin Cash aspires to become a medium for daily transactions, the truth is that unlike its competitor Bitcoin and altcoins like Litecoin, Bitcoin Cash still lacks mass adoption outside the crypto community.
On top of that, the four-year history of BCH has been affected by numerous events and forks that impacted its price significantly without allowing it to adapt to a natural growth flow.
Is It Worth Investing In Bitcoin Cash In 2022?
Let’s not forget that Bitcoin Cash has a wide range of advantages over other digital coins. BCH offers transaction fees next to nothing, decentralised financial transactions, relative stability compared to other cryptocurrencies, quick and safe transactions, and robust infrastructure.
At the same time, remember that Bitcoin Cash is a high risk and high reward investment.
Cryptocurrencies are highly volatile and trading cryptos can wipe out your savings. That’s why never invest money you can’t afford to lose.
Don’t forget one of the main rules in the financial sector: never invest more than 1% of your account on a single trade.
Moreover, if Bitcoin manages to improve its scalability, Bitcoin Cash may lose relevance.
So, if you decide to invest in BCH, always do your research and proceed with caution.
How Much Will Bitcoin Cash Be Worth?
Looking at BCH’s past performance we can assume that Bitcoin Cash may increase in value in the future, but experts disagree on how much BCH can appreciate.
Bitcoin Cash had an impressive opening value, and at the end of 2017, as stated above, Bitcoin Cash jumped to over $4,000.
Since then, Bitcoin Cash has been relatively stable even during the coronavirus-triggered bearish market. However, it failed to even get close to its all-time high in the 2021 bull run, temporarily pasting $1,500 at the highest.
But all in all, with a strong roadmap and ideas for what Bitcoin should be, the future of Bitcoin Cash seems pretty bright.
What Will Bitcoin Cash Be Worth In 2025?
The below prediction figures outline some of the potential highs and lows of Bitcoin Cash price predictions for 2025 offered by industry forecasters.
|BCH Price Forecaster 2025||Lowest Price||Highest Price|
|The Economy Forecast Agency||$71||$306|
|Coin Price Forecast||$841||$936|
|Cryptocurrency Price Prediction||$1,638||$5,381|
As you can see from the above table, price forecasters vary considerably for 2025.
Can Bitcoin Cash Reach $1 Million?
It is widely believed that Bitcoin (BTC) could probably reach $1 million per coin, primarily because of its scarcity, and while Bitcoin Cash (BCH) also has that scarcity element, it’s likely not their goal.
You must remember what Bitcoin Cash aims to be - literally digital cash. And for that to happen, it needs to be cheap and easily transferable.
Meanwhile, Bitcoin is the digital equivalent of gold, a haven asset, which is quite the opposite of what it was supposed to be. This makes it appealing to investors
If Bitcoin is dethroned, Bitcoin Cash would probably not be the first choice for a haven asset.
So, it’s quite likely that Bitcoin Cash won’t reach $1 million in the foreseeable future.
Should I Invest in Bitcoin Cash?
Given its positive future and advantages over other cryptocurrencies, Bitcoin Cash offers some great opportunities for investors. But before investing in any asset, you should consider its risk-return and decide on a strategy, either in the short or long term.
Because no highly profitable investment is 100% safe! Risk management is crucial to reduce risk and should always come before profits.
When it comes to potential risks, we should note that adoption is typically the most important factor, but the price of Bitcoin (BTC), and regulation can also be major influences.
The future of BCH also depends on how it will withstand competition with similar coins like Litecoin. The good news is that right now all these factors indicate that it looks like BCH can succeed.
Ready to invest in Bitcoin Cash?
What Is Wrong With Bitcoin Cash?
Bitcoin Cash is not a perfect investment and has several flaws, many of which are the same as Bitcoin.
Firstly, BCH still uses proof-of-work, which makes it not energy-efficient, just like Bitcoin.
And in 2021 Bitcoin got a lot of negative attention when Tesla dropped it as a payment method precisely because of the energy it requires. And with BCH in the same boat, it could mean many big companies might avoid adopting it.
Another concern more specific to BCH is its large blocks, which have been flagged as a security risk. Theoretically, just one malicious transaction in a block could corrupt it and cancel all other transactions inside.
Bitcoin Cash also has a slight image problem. Not only did it split from Bitcoin, but it has gone through two further splits since then with BSV being the most dramatic.
We could see further splits from Bitcoin Cash which could further divide and minimise the BCH community.
Further to this, more splits could mean a reduced hash rate, which could be another security risk as it would leave them vulnerable to a 51% attack.
And finally, Bitcoin Cash appears to be failing to gain investor interest, failing to reach its 2017 all-time high in the 2021 bull run when most cryptos were breaking old records.
So, while Bitcoin Cash may have the scarcity factor, it might not have the demand factor.
All this doesn’t mean that trading BCH is a bad idea, it is just wise to know about these downsides before you invest so you can recognise when you should get out of a trade.
What Drives Bitcoin Cash Price?
In the long term, Bitcoin Cash is influenced by adoption because it increases demand. And this adoption can come in the form of more partnerships and more merchant acceptance as a payment method.
Recognition that Bitcoin Cash can be used more effectively to transact value that our current system will also be a major factor.
Plus, like most altcoins, news about Bitcoin has a major impact, whether that’s good news or bad news. If Bitcoin goes up, Bitcoin Cash will likely follow.
And finally, Bitcoin Cash’s price can also be driven by factors like whether it will further split into more subgroups (though for now, this doesn’t look very likely).
Does Bitcoin Cash Have A Future?
Bitcoin Cash has a lot of work to do in 2022 and beyond and is likely not disappearing anytime soon.
Looking back at their roadmap, the enhancements will only make BCH more usable and increase usage. However, there is a key passage that should be noted:
“Bitcoin Cash has no official roadmap but developers say they remain committed to the spirit of the early BCH roadmap. Bitcoin Cash is a true marketplace, where anyone can build anything — no permission needed!”
And so, what specifically to expect can at times be a bit of a mystery. But by highlighting the fact that adoption is key, we will likely see a lot more ways to use BCH in the near future.
Out of all the transactional cryptos, Bitcoin Cash is perhaps the most popular. To assess Bitcoin Cash’s future, you also need to compare it to similar cryptos like Litecoin - perhaps its biggest rival.
How Can I Invest in BCH?
If you decide to invest in Bitcoin Cash, finding a place to buy and sell is easy. There are different ways to invest in BCH either in the short or long term, with cryptocurrency exchange platforms like eToro being the safest places to invest in crypto.
Note that with our partner eToro, one can buy BCH and trade CFDs on over 90+ crypto pairs. All you need to do is sign up, open, and fund your account, and start trading.
You can read more about how to buy Bitcoin Cash here.
eToro – Best Exchange To Buy BCH
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How To Buy Bitcoin Cash?
Buying Bitcoin Cash can be done in four simple steps with top-rated brokers and crypto exchanges like eToro.
Step 1. Go to eToro’s website and click ‘Join Now’ and fill out the registration form.
Step 2. Verify your information by uploading proof of identity and address. This is to prevent fraud and money laundering.
Step 3. Make a deposit to your account. The minimum deposit is $50 in the USA, $200 in most other countries. However, in several countries, the minimum deposit is significantly higher.
Step 4. Buy Bitcoin Cash. Go to ‘Trade Markets’ → ‘Crypto’ → ‘BCH’. You can then choose your terms.
And now you have Bitcoin Cash!
How To Sell Bitcoin Cash?
You can sell Bitcoin Cash super easily with eToro. Open your account and find Bitcoin Cash and click ‘Sell’ and choose your terms.
The value of your BCH will then be added to your account. You can then use those funds to buy another asset or withdraw.
Still have questions about investing in Bitcoin Cash? Perhaps these frequently asked questions will help.
Why Is Bitcoin Cash So High?
Scarcity is often pointed to as to why Bitcoin Cash is so high, in a similar vein to Bitcoin.
As Bitcoin Cash is adopted by more merchants, it could have a positive effect on prices as it may lead to more demand.
How Old Is Bitcoin Cash?
Bitcoin Cash was created in August 2017, meaning that as of 2022, it is five years old.
Does Bitcoin Cash Have A Limit?
Bitcoin Cash has a maximum supply of 21 million coins, so far 18.9 million BCH are in circulation meaning 2,048,718.75 are yet to be introduced.
Just like Bitcoin, Bitcoin Cash goes through a halving (or halvening) every four years where the block reward per mined block is halved, slowing the creation of new coins.
Is BCH Better Than BTC?
In technical terms, Bitcoin Cash (BCH) has bigger blocks and can process more transactions at lower fees than Bitcoin (BTC), which makes BCH a better investment.
This is especially true for users who are interested in everyday payments and online purchases.
That said, Bitcoin - the first and most popular cryptocurrency and still leads the way in terms of market cap and sentiment.
Will Bitcoin Cash Replace Bitcoin?
It is extremely unlikely that Bitcoin Cash will replace Bitcoin because they have two different purposes - Bitcoin is a haven asset, like gold, while Bitcoin Cash is more suited for everyday transactions.
In a sense, Bitcoin Cash has already replaced Bitcoin in that it has the potential to be used by more people as it is easier to use and transact.
But in regards to Bitcoin’s value, Bitcoin Cash will likely not want to get that high as it will prevent it from being a transactional currency.
Instead, investors will start to buy up huge quantities and hoard it, as is the case with Bitcoin.
Many Bitcoin investors plan to hold for the long term and don’t use Bitcoin for any transactions.
How Much Does It Cost To Mine 1 Bitcoin Cash?
There is no clear answer on this because it depends on the hardware you use, if you are part of a mining pool, and your electricity provider.
According to Coinwarz, to mine a whole Bitcoin Cash in 2021 would take approximately 13.8 days.
And as explained by CoinSwitch, the hardware is the biggest investment when you start mining Bitcoin Cash and ASIC miners can cost between $1,000 and $2,000 depending on model and age.
On top of that, the mining equipment you use can also impact your costs, revenue, and the time it takes to mine one BCH.
And interestingly, Great Wall of Numbers estimates that Bitcoin Cash’s electricity consumption is similar to that of Moldova or Cambodia.
Who Is Behind Bitcoin Cash?
Bitcoin Cash is decentralised meaning there is not a specific person or group behind it. Instead, many groups work on specific aspects and projects.
According to their unofficial roadmap, there are at least 24 teams involved in the development of Bitcoin Cash and projects related to Bitcoin Cash. They include:
- Bitcoin Cash Node
- Bitcoin Unlimited
- Bitcoin Verde
- Blockcurators GmbH
- Electron Cash
- Flowee the Hub
- Jochen Hoenicke
- Jonathan Silverblood
- Jonathan Toomim
- Knuth Node
- Mark Lundeberg
- Simple Ledger, inc.
Many wrongly assume that Roger Ver is the leader of the project, and while he is a vocal supporter, he is not involved in coding or proposing changes. He is more like an unofficial face of the project.
Is Bitcoin Cash Secure?
Yes, Bitcoin Cash is secure and though an attack is not very likely, it could be more secure.
For example, in comparison to Bitcoin, Bitcoin is more secure because of the number of people involved.
In decentralised networks, there is strength in numbers - the more participants there are, the more computing power is in play and thus harder to attack.
Bitcoin has the most people using its network, making it the most secure cryptocurrency, and reducing the chances of a 51% attack.
Furthermore, Bitcoin has tonnes more hashing power too.