Bitcoin Cash is produced as an outcome of a hard fork with Bitcoin. This means it originated from Bitcoin itself and acts as both Cryptocurrency and payment network.
At the same time, this Cryptocurrency is completely decentralized like other virtual currencies such as Bitcoin, Ethereum, Neo, Litecoin, etc. The main objective behind creating this Cryptocurrency is to work more like a currency than a store of value.
Bitcoin acts as a more store of value than a currency and consists of a high investment return. Hence, to eliminate all the drawbacks of Bitcoin, several Altcoins, including Bitcoin Cash, have risen in the market.
Why Was Bitcoin Cash Designed?
Bitcoin Cash is a new version of Bitcoin, and this was mainly designed to solve the scalability issues of Bitcoin. Nevertheless, this can be achieved by expanding the block size on the chain. As already discussed above, this is a fully decentralized currency with huge benefits.
Bitcoin Cash is one of the best Bitcoin alternatives with great potential. The market capitalization of this currency is also high, and this has attracted investors from all across the globe to invest in this asset.
This Cryptocurrency is a result of long arguments against Bitcoin’s scalability. The demand for Bitcoins has increased rapidly, and due to this, the transaction speed of the network has decreased. This issue is solved by Bitcoin Cash that takes less transaction time than Bitcoin.
Bitcoin Cash Vs. Bitcoin
Unlike other digital currencies, Bitcoin Cash is in close competition with Bitcoin itself. According to finance experts, Bitcoin Cash has a huge potential to enhance the Cryptocurrency market in a better way.
Now, let’s discuss the top differences between Bitcoin and Bitcoin Cash.
- Bitcoin Cash can manage more transactions than Bitcoin. This signifies more users can use BCH simultaneously than they can with Bitcoin.
- BCH has faster transfer times than time. This means you don’t have to wait for a long time for a single transaction to complete.
- Bitcoin Cash has lower transfer fees than Bitcoin. Hence, doing transactions in Bitcoin Cash will save you more money than Bitcoin.
Bitcoin Cash has greater potential than Bitcoin, and keep in mind; it can create its own niche in the digital currency industry. Therefore, from the above points, it is clear that both Bitcoin and Bitcoin Cash are in direct competition for user attraction.
Factors Affecting Bitcoin Cash’s Price
There are various factors that are affecting the Bitcoin Cash’s price, and these are listed below. Let’s have a look at Bitcoin Cash’s volatility factors.
Still, Bitcoin Cash has not been adopted widely by consumers and businesses as a payment of method. However, some individuals see huge potential in this asset and estimate that it has a bright future in the long run.
As already discussed above, the competition of Bitcoin Cash is closely related to Bitcoin itself and other Altcoins. This can limit the popularity of Bitcoin Cash.
The supply of Bitcoin Cash is the same as Bitcoin, i.e., 21 million. However, this limited supply can impact the value of this asset. This is a major disadvantage of this asset.
Bitcoin Cash and all other Cryptocurrencies are unregulated by central authorities or the government. These currencies are decentralized and do not require any intermediaries in between.
Scalability is one of the biggest issues that arise with Bitcoin, and to defeat this issue; Bitcoin Cash was developed. This can be a positive impact on Bitcoin Cash if you continue to see Bitcoin’s scalability issues.
The Final Thoughts
The above factors prove that Bitcoin Cash has a greater potential than Bitcoin. According to Trading App, investing in Bitcoin Cash can be the best long-term investment strategy for investors. At the same time, its demand is going to increase in the future, and so the value.