Bitcoin Cash? Your Attractive Heading
What is the difference between Bitcoin and Bitcoin, many readers will surely ask themselves. Well, this article is about exactly this difference. To do so, however, we have to go into the history of Bitcoin itself.
To be more precise, we look at August 1, 2017, the day on which there was a so-called hard fork. This means that the block chain will be split in the future. You can imagine it like a fork in the road. The previous way is the same, but in the future there will be 2 different ways, so the block chain is not the same after the fork. Bitcoin was divided into 2 different currencies, Bitcoin Core and Bitcoin Cash.
What was the reason for the creation of Bitcoin Cash?
The reason for this hard fork was to increase the storage space of one block in the block chain from 1 to 8 megabytes. With 1 megabyte of storage space, only 7 transactions per second could be performed, but as crypto currencies gained more and more acceptance, there were naturally more transactions than these 7 per second. This led to an increase of fees for transfers and wallets with small amounts became virtually worthless, because the fees for a transfer were higher than the transfer sum.
Part of the community wanted to increase the storage space, another part wanted to look for alternative solutions to solve the problem with the transactions. Therefore, the measure was controversial, so Bitcoin was split and Bitcoin Cash was created.
On May 15, 2018, Bitcoin Cash had an additional update, in which the size of a block was increased to 32 megabytes. This should ensure that enough transactions per second can be carried out in the future.
Advantages of Bitcoin Cash
The big advantage of Bitcoin Cash is the price of the transactions. This is lower with Bitcoin Cash than with Bitcoin Core. The technology is the same as for Bitcoin Core, only the block size has been increased. The value of Bitcoin Cash is based on the trust of the users who use it. As with other crypto currencies, the price is based purely on supply and demand. As long as many users believe in Bitcoin Cash, it has a value.
Your Attractive Heading
Lower transaction costs than with Bitcoin Core
Faster execution of transfers than with Bitcoin Core due to the increased block size
Criticism of Bitcoin Cash
Since the block chain has been increased by increasing the memory space of a block, the block chain now needs much more memory. This also means that everyone who has a wallet directly on his PC and wants to use it, has to download the whole block chain. Since this is a few 100 gigabytes, with a strong upward trend, this is of course very inefficient and for many people not even possible. If someone has an old PC with too little memory or a limited amount of data, it is impossible for this person to create a wallet directly on the computer.
For this reason, many critics also assume that Bitcoin Cash itself has no future and will disappear over time. Of course no one can say that for sure and everyone must decide for themselves whether they believe in Bitcoin Cash and want to invest or not. However, if you look at the charts of Bitcoin Cash compared to Bitcoin Core, you will notice that the price of Bitcoin Cash is rather going down. This means that investors are more inclined to invest in Bitcoin Core.
Of course, no one can say with certainty what exactly this is due to, but it is quite possible that more and more users will turn away from Bitcoin Cash. In the worst case it could thus lead to a total loss.
Should I invest in Bitcoin Cash?
You should be very careful before investing. In general all crypto currencies are highly speculative and the chance of making money with them is rather low. Here you should stay on the safe side and invest your money elsewhere. Since the entire topic crypto currencies is very complex, one should really only invest if one has dealt with the topic intensively and also has appropriate specialized knowledge.
Bitcoin cash is also no trailblazing innovation at the crypto currency market. The technology behind it is quasi identical with Bitcoin Core and presumably this will become generally accepted also on a long-term basis against Bitcoin Cash.
Of course one can never give a warranty, but the course of the exchange rate speaks rather against Bitcoin Cash. And since, as already mentioned, the price of a crypto-currency arises exclusively from supply and demand, the exchange rate could fall rapidly if users lose confidence.
If you want to buy Bitcoin Cash, we have put together a step-by-step guide for you.
But I would still like to own crypto currencies, so what should I do?
This is also possible without any problems. For example, you can earn small amounts of different crypto currencies for free with Faucets. In the course of time this will add up, so you will get enough Bitcoin Cash without investment to experiment with the currency. All you need is a wallet and patience. The amount you can earn is of course small, but you don’t need to invest any money. In the worst case you only lost your time, but not your money.
If you only want to use the currency as a speculative object, automated CFD trading via a robot like The News Spy might be interesting for you. However, the risk of loss is enormously high here as well, so if you have no prior knowledge about the function of financial markets and crypto-currencies, it’s better to leave it alone.
