Bitcoin was invented to facilitate the transfer of money all over the world. But with the increase in popularity and value, many people started appreciating it as a store of value. But this was always going to create problems. Processing transactions became slower than normal and you had to pay a heavy transaction fee if your transaction is to be processed with alacrity. This generated a lot of complaints among Bitcoin users. Imagine waiting for four days before a $3 payment is completed or paying a transaction fee of $15 to complete the payment. The developers knew an urgent step had to be taken and after many deliberations and proposals, the implementation of the Bitcoin Cash protocol was announced. Here is what you need to know about Bitcoin Cash.
What is Bitcoin Cash?
Bitcoin cash was created in 2017 following a hardfork of Bitcoin. One of the many promises of Bitcoin is facilitating the exchange of money all over the world. But as the coin continued to gain an almost unprecedented popularity and appreciation in its market value, transaction fees became to increase and a cap was put on the number of transactions. This led to disagreements in the miners’ community and the decision to create another fast and cheap means of peer-to-peer cash transfer. Expectedly, Bitcoin cash has a lot of similarities with its parent currency, but there are some key differences still. Here are some of them:
- An increase in block size
- A freedom from SegWit integration
- A greater usability due to faster confirmations and cheaper transaction fees
How much is Bitcoin Cash worth?
Naturally, the dip experienced by the cryptocurrency market greatly affected all cryptocurrencies. The market value of the Bitcoin cash as of 26th April, 2018 is $1343 according to coinmarketcap.com. this is a far cry from its December 2017 value when it reached an all-time high of $4355. But it’s not all bad news. The current figure represents a 4% increase in the value over the past week. If the increase can be sustained, it is only a matter of time before another all-time high is set.
Does the price of Bitcoin Cash depend on the price of Bitcoin?
Bitcoin Cash was designed as a totally independent cryptocurrency. So, it’s price does not depend on the price of Bitcoin. However, you should not forget Bitcoin is still the alpha cryptocurrency. Much of the happenings in the cryptocurrency market largely depends on the activity of the Bitcoin. If there is a drop or surge in its value, other coins are highly likely to follow its trend.
Should I invest in Bitcoin Cash?
The decision to invest in any coin lies solely with you and you should only make such decision after in-depth fundamental and technical analysis. Bitcoin Cash is still quite young, compared with other giants in the cryptocurrency market. But, it has proved capable of rubbing shoulders with the rest. It has the second highest value, behind only ‘you know who’ and the fourth highest market capitalization (as at the time of writing this article). The speed of transactions and lower transaction fees combine to increase the coin’s appeal. Investing in cryptocurrency is always a risk, but this might be a risk worth taking, after all.