Pros of Bitcoin Cash
- Bitcoin Cash is decentralised, so there’s no involvement from governments or banks
- The cryptocurrency is much more scalable than Bitcoin, for faster transactions
- Fees are significantly lower than for Bitcoin
- Bitcoin Cash is very easy to buy and sell
Cons of Bitcoin Cash
- Bitcoin Cash is not yet as popular as Bitcoin
History of Bitcoin Cash – A brief history of Bitcoin Cash
The original Bitcoin was launched in January 2009, based on a white paper created by the mysterious and unknown Satoshi Nakamoto. The cryptocurrency uses decentralised blockchain technology to confirm payments and transactions, labelling them as legitimate before storing them on blockchain ledgers.
But as interest in this original cryptocurrency grew, many users noted that the technology can be painfully slow at times, with some payments taking up to four days to complete during busy periods. Transaction fees could also run very high at times of increased activity on the blockchain, leading some supporters to suggest changes to the cryptocurrency algorithms.
Roger Ver – sometimes referred to as ‘Bitcoin Jesus’ – was one of the leading supporters for increasing the block size of Bitcoin. He felt the small block sizes compelled users to treat the cryptocurrency as an investment, rather than a viable currency for buying and selling goods and services. In conjunction with other crypto fans, developers and investors he instigated a break away from the original Bitcoin in July 2017, and by August that year Bitcoin Cash had been created, in what is known as a ‘hard fork’ from its parent coin.
Bitcoin Cash Development – Why was it created?
With Bitcoin operating block sizes of just 1 MB, the developers behind Bitcoin Cash decided to increase that size to 8 MB, enabling faster, cheaper transactions. This would enable even fairly small transactions to be undertaken very quickly, making the cryptocurrency more accessible for everyone.
In August 2017 the hard fork occurred, with Bitcoin Cash splitting away from Bitcoin immediately after block number 478558 was cleared. The hard fork is also sometimes referred to as a cloning, offshoot, spinoff or second version, producing another altcoin that follows its own independent protocols.
But in 2018 there was another hard fork, as further disagreements surrounded block sizes, as well as issues over the incorporation of smart contracts. In November of that year the blockchain divided once again, creating Bitcoin Cash ABC (now referred to as Bitcoin Cash) and Bitcoin Cash SV, which aimed to adhere more closely to Satoshi Nakamoto’s original vision.
Statistics and Major Facts about Bitcoin Cash Trading
Although Bitcoin Cash is a breakaway altcoin from Bitcoin, both cryptocurrencies share a number of similarities. Both platforms operate using the same mechanisms for example, with both cryptocurrencies capped at a maximum supply of 21 million coins.
As the hard fork from Bitcoin occurred in August 2017, every holder of Bitcoin received the equivalent amount in Bitcoin Cash. From this moment both cryptocurrencies followed their own separate paths, with Bitcoin Cash having an initial launch price of US$900. Since then the price has fluctuated very widely, as is common with just about all cryptocurrencies, meaning there are no absolute guarantees when it comes to Bitcoin Cash trading.
Just as with Bitcoin itself, Bitcoin Cash undergoes a halving process approximately every four years, when 210,0000 blocks have been mined. This event usually leads to an upswing in value, with the next halving predicted to take place in March 2024.
Security and Features of Bitcoin Cash – What can it be used for?
With no centralised banks or governments to back them, cryptocurrencies operate completely independently of the usual financial markets. And not surprisingly that leads some users to question their security. The blockchain ledger records every transaction made with Bitcoin Cash, but security can still be an issue, so investors are advised to do a bit of research to avoid becoming caught up in any Bitcoin Cash trading scams.
Bitcoin Cash is designed to be used for all sorts of financial transactions, so you can use the cryptocurrency to purchase a wide variety of goods and services. And because it operates outside of government and fiat currencies, you won’t incur loads of fees using the cryptocurrency, even with worldwide transactions. Faster and cheaper to send than Bitcoin, Bitcoin Cash payments are quick, easy and can be made day or night, thanks to always-on blockchain technology.
And New Zealand users of Bitcoin Cash can even be paid their salaries in the cryptocurrency these days, if they so choose. This is the first country to sanction crypto salary payments in this way, although uptake is likely to be slow at first as people become accustomed to the new technology. But in the future we can expect more people to adopt this payment method, helping to make the cryptocurrency even more mainstream and a viable alternative to fiat currencies.
Like Bitcoin, Bitcoin Cash operates using a Proof-of-Work algorithm to confirm each transaction on the blockchain and create new blocks. Miners compete with each other and are rewarded for completing transactions, generating further coins in the process. ; However, unlike Bitcoin, the newer cryptocurrency doesn’t use Segregated Witness, or SegWit, which uses the metadata that relates to block transactions.
How to Trade Bitcoin Cash – Our tips for Bitcoin Cash trading
If you’re thinking of dipping your toes into the Bitcoin Cash waters, we recommend doing a little background reading first to familiarise yourself with this particular crypto. These markets can be highly volatile, so we recommend never investing more than you can comfortably afford to lose. But if you’d like to take advantage of this exciting market, we can help you to get started. Here at TradersBest.com we’ve got all the know-how you need to buy Bitcoin Cash and get your Bitcoin Cash trading experience off to a flying start.
New Zealand residents can buy cryptocurrencies online from a number of crypto exchanges, so it’s worth browsing through the alternatives to find one that suits your needs. Check that you can buy Bitcoin Cash from your chosen exchange before you sign up, although as a popular altcoin it should be widely available from all major exchanges.
We can’t recommend the best Bitcoin Cash trading site for your specific needs, but we can point you in the direction of all the best Bitcoin Cash trading sites available within New Zealand. Browse through our Bitcoin Cash trading reviews, and you’ll be able to pinpoint the exchanges that offer you the type of service you’re looking for.
If you’re already dabbled in Bitcoin trading you’ll already have a crypto exchange account that you can sign into to buy Bitcoin Cash. But if this is the first time you’ve tried to buy crypto online then you’ll need to set up a new account with your preferred exchange. But whether you opt for Coinbase, Binance coin trading or some other exchange service, the process will always be fairly similar.
Start by signing up to your chosen exchange and choosing a password. You’ll have to fill in an online form with a few personal details, including name, age and address and provide proof of your identity, which could take a few hours to be processed. Most exchange sites accept passports, ID cards and driving licences, and you may need to upload a photograph directly from your device too, just to confirm your identity. We recommend enabling two-step authentication, if it’s offered, as it prevents anyone else from accessing your account. Link your mobile to your account for a text code verification every time you sign in.
Once your sign up has been activated you just need to link a bank account or payment card to your details and you’re ready to buy Bitcoin Cash. Look for the Bitcoin Cash or BCH logo to view the current price, then click or tap on the Buy button when you’re ready to make a purchase. You’ll be offered a trade, and you can either agree to it or wait until the purchase price is more favourable for Bitcoin Cash trading.
Some crypto exchanges will let you store your cryptocurrency within their site, but we really don’t recommend this, except for very small amounts. We strongly advise you to download your own desktop or Android wallet, so you hold your Bitcoin Cash offline yourself. There are quite a few options to choose from, including Cryptonator and Electron Cash Wallet. Ideally, you should have your offline wallet ready before you buy Bitcoin Cash or commence Bitcoin Cash Trading. You can then transfer your funds to your electronic wallet until you’re ready to use or sell them.
Most cryptocurrency exchanges allow you to purchase a wide selection of altcoins, so you can buy Litecoin, buy Ripple or indulge in some Ethereum trading at the same time as your Bitcoin Cash for an even bigger cryptocurrency investment portfolio.
Future Outlook for Bitcoin Cash – Where is BCH going?
Bitcoin has a history of over 12 years behind it, whereas Bitcoin Cash has only been in existence for a little over three years so far. So it’s still a little early to spot emerging trends, particularly since cryptocurrencies are so volatile. However, we do know that the Bitcoin cash price has traditionally been significantly more volatile than that of Bitcoin Cash, making this a potentially good option for the more risk-averse investor.
Quite a few pundits have made a Bitcoin Cash price prediction that the crypto could soar to new levels over the coming months. But any Bitcoin Cash prediction must come with the caveat that cryptocurrency markets are unregulated, so there’s a high degree of risk involved. The words caveat emptor spring to mind, so it’s worth doing as much research as you can before investing.
Bitcoin Cash Reputation and Customer Feedback – General feedback on BCH
Bitcoin Cash has a huge fanbase, many of whom are keen to adhere to the original concept of Bitcoin, as set out by Satoshi Nakamoto. But there seem to be a number of detractors, who claim loyalty to Bitcoin or one of the other Bitcoin hard forks, such as Bitcoin SV.
But there’s no doubting that when you buy Bitcoin Cash you’re opening a doorway to fast, simple online purchasing, with none of the high costs and lengthy waits associated with Bitcoin transactions. And that alone makes Bitcoin Cash trading seem an appealing prospect, even for those with little cryptocurrency experience.
Conclusion – Fast transaction times and low fees
Bitcoin Cash trading certainly isn’t for everyone, but it offers some clear advantages over the original Bitcoin platform. The jury is out on whether or not Bitcoin Cash trading will ever overtake Bitcoin trading, particularly since Bitcoin has had such a head start.
We can’t guide you with any investment advice, but those fast transaction times and cheap fees mean that this may prove to be a good time to buy Bitcoin Cash. So be sure to browse through all the sections of our site so you can get your Bitcoin Cash trading experience off to a flying start!