Would you invest in bitcoin cash

Bitcoin, for all its popularity, fame and valuation, has quite a few flaws. Developers and miners came up with two solutions — making the amount of data that needed to be verified smaller, and making the blocks of data bigger. However, not everyone agreed with this, so a part of the community split off and caused a hard fork that led to the creation of Bitcoin Cash.

BCH blocks can now handle 8 MB of data, as opposed to Bitcoin's 1 MB, and it is based on the technology known as segregated witness, or SegWit2x, which makes the amount of data that needs to be verified smaller. As a result, BCH is a faster blockchain that can, in theory, handle more transactions, and do it faster than its ancestor Bitcoin.

Bitcoin Cash was officially launched on July 24, , and at the time, it was believed to be a better version of Bitcoin — at least by some. It attracted enough attention for its price to start growing rather quickly. The price of the coin surged rapidly, reaching its all-time high by December 21, Those familiar with the crypto history likely know that the following year, , was not kind to the industry.

In the second half of January , crypto prices started crashing down, which marked the beginning of a year and a half-long crypto winter. The price of Bitcoin Cash cryptocurrency followed this trend, although it did give its best to resist it. The coin kept dropping as months went by, and it eventually reached the height it had back when it was first launched. Unfortunately, the crypto winter was far from the last problem that the coin experienced. The project was scheduled to have a hard fork of its own in November , where it would implement new upgrades. But, similarly to how BCH came to be when the community could not agree on what to do with Bitcoin, BCH supporters also could not decide on how to proceed with the project.

Is Bitcoin Cash a Good Investment in 2021?

The coin saw several upswings in , and even in early At the moment, the Bitcoin Cash trend is not at all similar to the one dictated by Bitcoin , which is interesting, considering that BCH did follow Bitcoin's lead in the past. However, it is worth noting that Bitcoin Cash has recently experienced yet another hard fork as part of its upgrade.

The fork, once again, had a strong impact, although definitely not as strong as the one back in But, eventually, Bitcoin Cash Node emerged as the victor, as Bitcoin Cash ABC received little to no hashpower in the fight for dominance that followed the fork itself. In essence, Bitcoin Cash is a more competent blockchain than Bitcoin itself, and as such, it could become the main blockchain for making online payments.

At least, that is what is possible in theory. Another thing to note is the current hard fork resolution. Bitcoin Cash Node was against it, and it clearly received a lot more support, judging by the hashpower. This means that the winning blockchain is the one that has decided to not introduce a mining tax on its community, which is likely going to help it attract more attention, and push its price further up. Furthermore, despite always being controversial, BCH has quite a dedicated fan club these days, which will continue to support the project and give it value.

Bitcoin Cash's situation has caused many to become extremely interested in the BCH forecast for the next year, as well as all those that will follow. When it comes to Bitcoin Cash predictions, there are some experts that are quite bullish. Roger Ver, for example, has previously stated that BCH might see its price double over the following 12 months. Of course, Ver gave this prediction before the latest hard fork happened, and since then, he said that hard forking like this could seriously damage BCH. One problem with giving accurate Bitcoin Cash price predictions is the fact that BCH is still relatively new.

When it comes to BCH, on the other hand, there are only three and a half years, and most of that time was filled with events that impacted the price quite sharply, without allowing it to follow its natural flow.

What is a Bitcoin Investment?

Things will pick up from there, however, at least according to other forecasting sources. That depends on every individual investor and their plans for the coin. Judging by the long-term predictions, the situation for BCH is going to become worse before becoming better. However, predictions for are not very optimistic. What is your BCH price prediction? Have you already decided whether you should buy or steer clear of the coin?

One of the ways to try to profit from the market volatility without having to own an actual asset is to trade BCH through contracts for difference CFDs.

What Is Cryptocurrency? Beginners Guide to Digital Cash - NerdWallet

Trading CFDs gives the opportunity to capitalise on both bullish and bearish price action. Note that CFDs are a leveraged product. The good news is that you are not required to pay the full price tag to become a Bitcoin investor. That's possible. As the price of Bitcoin increases, the value of your proportional share increases too. The mechanics of investing in bitcoin are similar to investing in the stock market, but there are some nuances e.

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When you're ready to get started, you can purchase fractional shares through major cryptocurrency exchanges or brokerage firms. You can check out a popular exchange like Coinbase or go straight to Robinhood to manage your cryptocurrency investments. There are also other exchanges you can use to buy and sell cryptocurrency, so do your due diligence and determine what works best for you.

Here's a simple rule of thumb when it comes to investing: Don't invest what you can't afford to lose. But on the other hand, don't be so afraid of losing that you miss out on an incredible learning opportunity. Adding a little bit of bitcoin to your portfolio allows you to diversify your assets.

You never want to be in a position where you have to rely on only one asset class for your survival. That's one of the greatest risks you can take on.

By diversifying your asset classes and diving in to learn more, you give yourself a winning chance no matter what the outcome turns out to be five years from now. Let's face it: Bitcoin could crash next month. But there's also an opportunity for Bitcoin to double in value. Although there is much uncertainty about the direction of Bitcoin over the next year, Bitcoin has changed the way many people think about fiat currency. There's nothing wrong with allocating some of your extra cash to invest in Bitcoin if it motivates you to learn more, grow, and see what's coming down the pipeline.

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