The whole crypto world is currently divided into one common dilemma- whether to invest in Bitcoin or in Bitcoin Cash. Bitcoin is undoubtedly the king of cryptocurrencies. On the other hand, Bitcoin Cash was created out of a BTC hard fork. Some experts dub it as the “Bitcoin clone” and was mainly developed to counter the challenges faced by the original coin (BTC). However, since its inception BCH has shown great promise and has duly managed to impress the crypto world. In fact, some investors even score it over its parent currency today.
So, should you invest in BCH or BTC? Here is a brief on the entire situation that will help to land up with an informed decision.
Why was BCH developed?
Before getting into any further discussion, you should have a clear idea on why BCH was developed in the first place.
Problems with Bitcoin
Bitcoin was developed with the idea to create a cash system for internet that will be a virtual payment system sans third parties or intermediaries. But, over time, BTC began to stray away from its original goal. It turned into a very inconvenient payment system. On one hand, it suffered from sloth transaction times. And on another, it started demanding exorbitant transaction fees even for minor payments. No wonder, BTC sparked a row of criticism from several quarters across the crypto industry.
According to market experts, Bitcoin today has turned into more of a, say, speculative asset. It is more of like “digital gold” now instead of “cash”. As a result, it can hardly be used for payments. It’s kind of like reserved currency now which can’t be used in regular mainstream transaction.
Bitcoin Cash arrives as a solution
Bitcoin Cash was developed to resolve the problems mentioned above. BCH comes with bigger block size which automatically allows faster transaction times compared to Bitcoin. Alongside, fees are also lower here. So, BCH seems to be a more rational and accessible solution for “payments”- the very point where BTC has failed. It’s little wonder that, the crypto community currently champions growing investment on BCH over BTC.
It’s also to mention here that BCH community seems to be a united zone. But, these days, the BTC community is seriously struggling with heavy in-fighting among developers.
Does BCH shows potential?
One thing is clear- BCH is more convenient and affordable as a payment system compared to BTC. But, does it promise a sound market value?
Well, when the fork actually happened BTC was at $2,800. BCH debuted with a solid $250. At one point of time, BCH mining seemed to be 69.4 percent more profitable compared BTC mining. No wonder, miners started diverting their attention to the Bitcoin off-shoot rather than the original coin.
So, Bitcoin Cash definitely shows huge potential for investors. But then, you can’t forget Bitcoin is the biggest of all cryptocurrencies. The best strategy would be to invest in both- you may invest more in BCH than in BTC though.
Whether you want to buy Bitcoin or Bitcoin Cash, you have to sign up with a reliable exchange. But, alongside, you should also register with a third-party offline wallet to keep your funds secured. Try to avoid online wallets as much as possible. There is no dearth of hackers online with eine betrügerische Absicht and they are always looking into sneak into online wallets. Offline wallets or cold wallets are safe from hacking attacks.