The world of cryptocurrencies is growing every day. New and more sophisticated digital currencies are entering the market and one of them is BitCoin Cash. Although it has not been around for long, its popularity keeps rising and crypto traders should not underestimate its powers.
What is BitCoin Cash?
The answer is quite simple. BitCoin Cash is a new cryptocurrency completely independent of Bitcoin, though its name and origin might suggest otherwise. BitCoin Cash originated in China when Chinese Bitcoin miners did not want their profits reduced by the cost to update the Bitcoin payment network. This was required so they could speed up transactions. In other words, BitCoin Cash emerged in reaction to the changes Bitcoin were going to require. As there are some Bitcoin exchanges that do not support BitCoin Cash, it will be interesting to watch its future development.
Where and how to buy Bitcoin Cash?
Just as any other cryptocurrency, BitCoin Cash is first mined using a program run on high performance computers. However, most people get the currency and earn profit through trading.
The concept of cryptocurrency trading is very simple. However, it is good to understand the market and study the historical development and current exchange rate trends. When you find the exchange rate low, you purchase the currency. Later, when its price goes up, you sell it and profit from the trade.
The best way to start is by setting up a demo account. Start exploring how trading works without taking any risks. When you have tested your skills and ready to start trading for real, all you have to do is deposit at least $100 into your personal trading account. You’re all set to enter the world of cryptocurrencies and your first step can be purchasing BitCoin Cash.
Why was BitCoin Cash introduced?
Bitcoin is known for its slow transaction time which is a result of each Bitcoin transaction being stored into a database. As the amount of stored data grows, transaction times get longer and can take hours. To give you an idea, the Bitcoin network can process around three transactions per second while Visa or Mastercard can complete nearly 2,000 transactions in that same time period.
The introduction of BitCoin Cash was a step to establish a new cryptocurrency with different network rules. Since the currency is independent of Bitcoin, you need to be aware that its exchange rate is different.
How is BitCoin Cash different from Bitcoin?
The transaction speed issues of Bitcoin were addressed by the implementation of SegWit2x (Segregated Witness) technology. This removes signature data and speeds up Bitcoin transactions. Most of the community approved of the change, however, some traders were opposed saying the data cannot be completely removed. Additionally, the implementation of SegWit2x might possibly change the whole identity and course of Bitcoin, decentralizing and de-democratizing it. In the end, the conflicting ideas resulted in the emergence of BitCoin Cash.
BitCoin Cash easily surpasses Bitcoin in the transaction speed. Its sophisticated software is able to process eight times as many transactions as Bitcoin after the implementation of SegWit2x. In fact, BitCoin Cash is an improved version of Bitcoin.
The problem is that BitCoin Cash has yet to gain sufficient credibility within the community. Since it actually opposes the original Bitcoin currency, many people hold back. On the other hand, some traders want to take advantage and invest in BitCoin Cash. They might be lucky and BitCoin Cash might go up in value in no time. However, they also have to be aware of the possibility of BitCoin Cash turning out to be a failure.
What is the future of BitCoin Cash?
According to analysts, BitCoin Cash might ultimately succeed and dominate the market. Not only is BitCoin Cash more progressive and faster, but it also has a well-known name which has already proven to be a benefit. Overall, BitCoin Cash seems to have a good chance of becoming a strong cryptocurrency.
Today, cryptocurrencies, including BitCoin Cash, are considered to be one of the best growing forms of investment. Plus, as more and more businesses accept cryptocurrency payments in exchange for their goods and services, you are not limited to holding the currency for investment purposes only.
