Reasons to buy Bitcoin cash
Almost everyone in the cryptocurrency world has heard of Bitcoin Cash and correctly assumed that it is related to Bitcoin. As the most popular cryptocurrency with the highest market value and the reputation of pioneering the entire crypto market, Bitcoin has become a household term. Many potential investors wonder whether Bitcoin Cash is a good investment, just like Bitcoin would have been if you had bought it before the boom. These people are onto something as there are numerous reasons to buy Bitcoin Cash.
Where Did Bitcoin Cash Come From?
Before going into reasons to buy Bitcoin Cash (BCH), you should take the time to understand where it came from. After all, Bitcoin Cash’s connection to Bitcoin (BTC) is one of the reasons it is worth your consideration. Simply put, Bitcoin Cash was a fork from Bitcoin in August 2017. With Bitcoin Cash, the block sizes got bigger, improving the system’s ability to handle transactions.
This was a response to the lack of scalability of Bitcoin, which had caused concerns from the start. The developers behind Bitcoin wrote a block size limit of 1 megabyte into its code as a way to stop spam attacks back when the value of BTC was low. The problem arose by 2015 or so, when Bitcoin was much more valuable, reducing the risk of spam attacks. At this point, the average block size was also 600 bytes, meaning that there were delays during peak times. Bitcoin Cash was one of the several forks that attempted to find a solution as well as the one that proved to be the most successful.
Compared to Bitcoin, Bitcoin Cash increases the block size up to 8 megabytes, multiplying it by eight. It additionally gets rid of SegWit, the proposed code adjustment that would remove portions of the transaction to make more block space available. With the fork for Bitcoin Cash, the developers wanted to increase the potential number of transactions processed. They had the ultimate goal of this increased scalability, allowing Bitcoin Cash to process as many transactions as big names like Visa and PayPal.
Bitcoin Cash Is More Affordable and Has Not Peaked — Reasons to Buy Bitcoin Cash
From a pure investment standpoint, it is much easier to begin buying cryptocurrency with Bitcoin Cash than Bitcoin simply due to the relative values of the cryptocurrencies. At the time of writing (April 25, 2018), one BTC is equal to $9,015 while one BCH is equal to $1,268. Based on those figures, your purchase of BCH would get you about 7 more tokens than you would if you bought BTC instead.
Keep in mind, however, that both Bitcoin and Bitcoin Cash have experienced spikes, although BCH’s is not as extreme as that of BTC. When BCH started trading, it quickly reached a high of about $886.64 but dropped back down to $513.22 soon after. Even so, it managed to reach $4,000 by the end of 2017. Even while that change is impressive, Bitcoin has already had a much more dramatic increase in value, considering that the first real-world transaction involving BTC was famously the purchase of two pizzas for 10,000 BTC. Since BCH has not experienced a price spike like that of BTC yet, some argue that it may have more potential for growth in the future.
Experts Say Now Is the Time — Reasons to Buy Bitcoin Cash
If you scour the web for reasons to buy Bitcoin Cash, you will find numerous recommendations from experts who say that this is the ideal time to purchase BCH. Very recently, Brian Kelly, the CEO and founder of BKCM, which focuses on digital currency investment, publicly recommended that people invest in BCH instead of BTC. He pointed out strong points in favor of this cryptocurrency, including its recent increase in volatility and the increased volume.
Kelly also pointed out that since everyone just took care of their taxes, this is the time when cryptocurrencies will rally together, and investors should buy now while BCH is still in a relative dip. Unfortunately for those looking to get in, Bitcoin Cash has been steadily rising in the last few days. This means that you need to either watch the markets and invest when it drops or buy soon and hope the trend continues.
Reasons to Invest in BCH Over BTC
When it comes to choosing where to put your money in cryptocurrency-related investments, Bitcoin Cash has several benefits. They give Bitcoin Cash the potential to dramatically increase in price or at least experience steady growth. Just some advantages include simplicity, very low fees (just pennies compared to $20 to $50 for Bitcoin), reliability, speed, on-chain scalability, Emergency Difficulty Adjustment, and new transaction signatures.
How to Buy Bitcoin Cash
There are several ways to buy Bitcoin Cash once you decide you want to, with the easiest method of simply using an exchange. If you owned Bitcoins before Aug. 1, 2017, which is when the fork for Bitcoin Cash occurred, you can claim Bitcoin Cash tokens, with the specifics of the method depending on the wallet your Bitcoins are stored in.
As mentioned, the simplest method is to just visit a cryptocurrency exchange that supports Bitcoin Cash, of which there are many. However, you will have to check the supported currencies before signing up for an exchange since not all support BCH yet. Most platforms will let you purchase Bitcoin Cash in exchange for other cryptocurrencies, but you can also find some that let you purchase it using fiat money. Several options include CEX.IO, Kraken, Naira2Usd and GDAX. Of course, you will have to undergo an account verification process to use most exchanges, provided you want to buy a sizable amount of BCH.
Because of this, some prefer to find peer-to-peer trading websites, such as Remitano and LocalBitcoinCash, which follows the principles of LocalBitcoin but with BCH. If you do opt for peer-to-peer trading, just keep in mind that you are responsible for weeding out scammers. The trading platform bears no responsibility if you accidentally choose a fraudulent party to deal with and lose money.
Whether you look at the current price of buying Bitcoin Cash or its potential for growth based on its ability to improve upon Bitcoin, there are numerous reasons for purchasing Bitcoin Cash. You just need to track the markets to see the right time to buy BCH. Also keep in mind that this is more of a long-term investment than a short-term one, much like Bitcoin was at the start.