In this article I am going to be providing information about and reviewing the Bitcoin Cash cryptocurrency. I will weigh up the pros and cons of the coin to help you decide if this is a coin you should be using or investing in.
What is Bitcoin Cash?
Bitcoin Cash is a hard fork of the original Bitcoin blockchain that came into existence on August 1st 2017.
A portion of the Bitcoin community felt that recent changes to Bitcoin were not fixing underlying issues. For example, they felt that Bitcoin Improvement Proposal 91 (BIP91) did not deal with the 1MB maximum block size. They also felt that the improvements did not benefit those using Bitcoin as a currency and instead benefitted only those investing in the coin.
A new fork, Bitcoin Cash, was announced that fixed the 1MB block size limit by upping this to 8MB. The new currency inherited the transaction history of Bitcoin up until block 478558. Therefore, if you had Bitcoins at that time, you will have the same amount of Bitcoin Cash. See a guide I made here on how to claim your Bitcoin Cash.
It retains the same maximum supply as Bitcoin, which is 21,000,000. As of writing, the supply is 16,827,113.
How active is the community?
The Bitcoin Cash community is pretty active on Reddit, a good sign of faith in the cryptocurrency.
This cryptocurrency also has one very high-profile advocate in the form of Roger Ver. Spending just five minutes on Roger Ver’s timeline on Twitter will reveal his passion for Bitcoin Cash and will begin to convince you that it really is a solid product.
How is it different from Bitcoin?
Bitcoin Cash has a maximum block size of 8MB, compared to Bitcoin’s 1MB. This allows for faster transactions on the blockchain.
It is also known to have far lower transaction fees, as can be seen below.
How has it done so far?
On August 1st 2017, just after the hard fork occurred, it was trading for around $300.
The all time low of this cryptocurrency is about $204.
The all time high of this cryptocurrency is about $2500.
As can be seen below, it has fluctuated quite wildly, but there is a positive correlation to it in terms of $USD price.
- Much lower, consistent transaction fees compared to Bitcoin.
- Strong community spearheaded by Roger Ver.
- There has already been a clear increase in the price already,
- Scarce allocation of coins means price is unlikely to ever go very low.
- There are some doubts as to whether the 8MB block size is a suitable solution for the long term future. However, if you consider the rate of technological advances, 8MB could be the equivalent of 1KB in say, 20-30 years. Therefore I would not worry too much about this aspect.
- Though unfairly, some will always see it as “just a hard fork” or a gimmick on Bitcoin’s name. This could hamper large scale investment and therefore the price may never climb too high.
Overall opinion and rating
In summary, I feel that Bitcoin Cash is actually a very good cryptocurrency. It is fixing underlying issues with Bitcoin, specifically in terms of the transaction fees and there is large support behind it.
It is definitely going to be a mainstay of the big cryptocurrencies in the years to come and I will be astonished if the price does not increase by at least double over the next year or so.
Overall rating: 4/5