Bitcoin Cash was created as a Bitcoin hard fork back in 2017. It was meant to be a solution to a long processing time and expensive fees associated with Bitcoin. Anyone who owned Bitcoin at the time of the hard fork was able to receive an equal amount of Bitcoin Cash. But how is Bitcoin Cash different?
Well, first of all, it has a much larger block size, which allows for quicker and more plentiful transactions. While the block size for Bitcoin is 1 MB, Bitcoin Cash’s was 8 MB and has recently been bumped up even higher to 32 MB.
BCH is also different from BTC in terms of how it is used. Currently, Bitcoin is mostly used as an investment, like digital gold. In order for Bitcoin Cash to succeed, it should be accepted as a true digital currency in a variety of different stores, shops and locations. The idea of Bitcoin Cash becoming a popular and widely accepted currency could mean massive growth for the coin and the whole industry.
Being not as popular as Bitcoin, it has made significant improvements and changes, and many crypto investors believe that BCH is the future. But is it enough for the Bitcoin Cash price to surge and overcome Bitcoin’s? Can Bitcoin Cash become a new king of cryptocurrency? Let’s try to figure out.
Bitcoin Cash on the Rise
While the benefits of Bitcoin Cash over Bitcoin are obvious, they are not the only reason to be excited for BCH. The coin is consistently updating and developing its network. In addition to that, Bitcoin Cash is constantly adding new merchants to the list of companies or services that accept it as a means of payment. At the moment, you can pay with BCH for a range of goods and services – for instance, you can purchase Microsoft products or even make donations to non-governmental organizations. The number of merchants will probably continue to grow and blossom in the coming months and years.
But how all these partnerships and improvements will affect the BCH price? It is $458 as of mid-October 2018, and its market cap has reached over $7,9 billion. This number is a lot lower than its all-time high of December 2017, which means there is enough room for BCH to grow.
Not only does a cheaper price mean more people can potentially jump into investing in Bitcoin Cash, but also various developments can bring more excitement to investors. For instance, Bitcoin Cash has recently made a deal with FuzeX, the smart e-card company. This partnership can potentially push Bitcoin Cash into wider adoption and make transacting with it easier. Sure, this level of recognition will have a positive impact on the BCH price.
However, we can’t only look at the good things about BCH and the crypto industry as a whole; we must also take potential obstacles into consideration. The first and most serious one is scalability, the ability to keep transactions quick and affordable. BCH has increased its block size in order to offer faster transactions. Although it’s the main advantage of the coin, there’s a huge drawback: if Bitcoin Cash or other assets continue to increase the block size, eventually, users will need more and more computer memory to secure the network, which could be extremely expensive.
The next obstacle that could stand in the way of Bitcoin Cash’s growth is a fightback from those who support traditional systems. Banks and other financial institutions will not give their ground easily. The more crypto market expands, the more traditional economy wants to win its place back. Also, the crypto market may face more regulations in the near future, which means that the price of BCH, as well as other major coins, can be pre-defined.
Another thing that could be an obstacle is that Bitcoin Cash is not the only show in town when it comes to cryptocurrencies that want to be multi-functional assets actively used in different areas. Other coins like Dash and XRP are trying to do the same thing and will be competing directly with Bitcoin Cash. The more options will be presented, the harder it will be to impress the community and attract new investors. Also, BTC is still the dominant crypto that prevents others from taking the leading position. Despite numerous issues that Bitcoin has to solve, it remains the most adopted and expected. Others are no match for Bitcoin today. The situation may change, but it will definitely take some time.
To Sum It Up
It is reasonable to expect the BCH price to increase due to new partnerships and upgrades. Bitcoin Cash is the most promising and influential Bitcoin fork which introduced much faster transactions. Is it enough to become more established and stable in value? Bitcoin Cash needs a way wider acceptance by different companies and moves in this direction. As you are probably aware of, any cryptocurrency is incredibly volatile and unpredictable, so there is no way of knowing for sure where the price of an asset will go. You always need to be cautious when investing in crypto.