With bitcoin (BTC) transaction volumes continuing to skyrocket to new heights, its future as a global medium of exchange seems assured. However, there are fundamental weaknesses of bitcoin as an asset that will continue to undermine its growth.
Bitcoin transactions are slow, as anyone with any experience of buying cryptocurrency will tell you. Furthermore, you cannot actually use it to buy a lot of things in everyday life, despite the best efforts of some companies.
This is where Bitcoin Cash (BCH) comes in. The rise of Bitcoin Cash is one of the most significant cryptocurrency trends of 2022. Here’s what you need to know.
1. How is Bitcoin Cash Different from Bitcoin?
First off, let’s break down how Bitcoin Cash actually differs from Bitcoin. It is crucial to note that Bitcoin Cash is a completely separate cryptocurrency from Bitcoin.
When you are buying cryptocurrency via a crypto buying platform, note that BTC and BCH are distinct assets. It is a “fork” or spin-off from bitcoin that is based on it, but it is an asset of its own.
It has much larger block sizes than bitcoin, to facilitate quicker transactions and verifications for those looking to purchase cryptocurrency. Essentially, BCH acts as “digital cash”, rather than as a purely speculative asset such as BTC.
2. Why Was Bitcoin Cash Created?
Bitcoin Cash was created to provide a version of bitcoin that could be more easily transferred and spent in the real world. The much larger block sizes greatly increase the transaction times for Bitcoin Cash so that it more closely resembles other forms of digital money.
Understanding crypto means understanding the limitations of bitcoin, which are the reason for the existence of Bitcoin Cash. Put simply, if bitcoin is a gold bar, bitcoin cash is a stack of dollars that you can spend.
3. How Can You Use Bitcoin Cash?
You can buy Bitcoin Cash on a trustworthy trading platform, much like you can purchase other crypto assets. Once your transaction is gone through, you will have BCH in your wallet, which you can use to buy a wide range of goods and services.
You can also use your Bitcoin Cash to transfer money to friends and family anywhere in the world safely and securely. Of course, Bitcoin Cash is also a high-value coin that is a worthwhile addition to any investment portfolio.
4. Is it Worth Investing in Bitcoin Cash?
While Bitcoin cash is less valuable than its mother currency, it remains one of the most expensive coins in the world. Much like Bitcoin, Bitcoin Cash is capped out at 21 million coins, meaning that no more can be produced after this number is mined.
Bitcoin Cash is relatively stable and has shown consistent price appreciation over the years, making it a great choice for any crypto portfolio.
The Latest Cryptocurrency Trends at Your Fingertips
If you are building a future-proof crypto portfolio, you need to stay on top of the cryptocurrency trends that matter.
Make sure to check out our dedicated Tech and Finance sections for updates and insights on the cryptocurrencies in your portfolio.