Learn more about the pros and cons of investing in Bitcoin Cash (BCH) to see if BCH is a profitable crypto asset to invest in 2021.
Crypto-investing in BCH: all pros and cons
Whatever anyone says, Bitcoin Cash coin is quite popular. This is one of the most famous forks Bitcoin, which itself has undergone a hard fork this month. But this is not the point, but whether Bitcoin Cash is a profitable investment tool in 2021.
So let’s dive into the complexity of one of the most controversial coins in the cryptocurrency sector.
What is Bitcoin Cash in the first place? This is a cryptocurrency launched in 2017 as a fork of Bitcoin to solve the scaling problems caused by its own popularity (or when the server part can’t handle the growing volume work and users).
The crypto asset was designed to help BTC solve scaling problems and improve its speed and efficiency. Bitcoin Cash blocks were designed eight times (8 MB) larger than BTC, and further increased to 32MB, as larger blocks can increase transaction verification time and allow the network handle more transactions per second.
Pros of investing in BCH
Thanks to its innovative roadmap, it is obvious that BCH has jumped up the crypto community. And while an asset cannot match its ancestor in terms of market capitalization, the truth is that there are various advantages to investing in Bitcoin Cash.
So here’s a quick overview of its benefits:
Decentralized:
Just like Bitcoin and other cryptocurrencies, the value of Bitcoin Cash is that the network is decentralized, eliminating the need for central banks and taking the money supply out of the hands of the authorities. Because nodes are spread around the world, Bitcoin Cash is also immune to political attacks, which is the main benefit of investing in crypt.
Scales:
One of the main advantages of VSN compared to SVTS is its scalability. The team quickly introduces changes and makes it more scalable. And that means more people can perform transactions and payments at the same time. As of November 2020, Bitcoin Cash has a block size of 32 MB (according to CoinMarketCap). High scalability means that the future potential for BCH implementation is also high.
Highly effective:
One of its main advantages is high efficiency. With units of much larger size than Bitcoin’s, it can record more transactions in each unit and make payments faster and at less cost. The Bitcoin Cash team has set a clear roadmap and is again considering increasing block sizes to address possible scalability issues. With the current network load, the queue of unconfirmed transactions is relatively small and usually does not exceed 200—250 transactions.
Low transaction costs:
With the increase in overall scalability of BCH, verification times and transaction fees decrease. A 236-byte transaction fee can cost the sender just $0.001 to $0.008, according to Bitcoin.com.
Popular:
Bitcoin Cash – still remains one of the most popular coins in terms of trading volume and market capitalization, and we cannot ignore one of the biggest advantages of investing in Bitcoin Cash: its popularity. It was popularized by many crypto-industry gurus, including Roger Vere, known as Bitcoin-Jesus. Ver tries to convince the world that Bitcoin Cash is a real Bitok, especially if the VTS continues to struggle with scalability issues and loses its dominance over other coins.
Easy to purchase:
BCH is easy to purchase. It is listed on leading crypto exchanges, which promotes mass adoption and increases its investment potential in the crypto market.
Cons of investing in BCH
Although Bitcoin Cash has a number of advantages over BTC and other cryptocurrencies, however, like any other investment, investing money into it is not without risk.
So here’s what you should know about the risks of investing in BCH:
Low spread:
Despite the popularity and potential of the asset, its distribution is relatively small. Compared to Bitcom, it still does not enjoy much confidence from investors, and shows less market penetration. Despite the fact that Roger Ver though actively tries to promote Bitcoin Cash, the mass adoption is still small, and we all know that the rate of implementation is crucial for the growth of any cryptocurrencies
Brand problems:
One of the main drawbacks of investing in Bitcoin Cash is brand issues that can negatively affect investor faith. The coin struggles to differentiate itself from Bitcoin and also has several splits including Bitcoin SV. So, to the awareness of its brand, as this is the case with the battle, there is still a long way to go.
Mining is less profitable:
Computational complexity of the network is a big drawback, as it affects the speed of data extraction. In fact, Bitcoin Cash mining is similar to BCH mining. The main difference is that BCH miners make less profit, which can affect their motivation. Most likely for you it is no secret that mining affects the cost of any cryptocurrency.
Low liquidity:
If we look at the volume of transactions within the network and the volatility of daily returns among other financial factors, it will become clear that Bitcoin Cash transactions are smaller than Bitcoin transactions. This means that BCH has lower liquidity compared to BTC, with BCH pairs trading less frequently than BTC pairs – a disadvantage that could affect future prices and mass adoption.
Now let’s look at the numbers and crypto-predictions.
Bitcoin Cash ranks seventh in market capitalization (5,154,277,114$) – an important fact that increases its investment potential.
Although some critics consider Bitcoin Cash not a very good investment in the long term, but a speculative tool in the short term, the figures show that the crypto asset is growing, and at the time of writing these lines, its cost was $280. UNITED STATES.
After all, it is an ambitious project designed to replace Bitcoin. As Wehr recently wrote: “Imagine investing in Bitcoin today because you don’t realize yet that it should have been BCH”.
Thus, the investment in Bitcoin Cash has a promising future, especially for those who believe in the future of cryptocurrency trading. According to some projections, BCH could reach $400 by at least the end of December.
Roger Wehr, in particular, believes Bitcoin Cash could even double in price in 2021.
Other crypto-investors also suggest that BCH could witness an upward trend and reach new highs. DigitalCoinPrice, one of the leading platforms that announced a possible upbeat outlook in the coming year for BCH, as well as positive forecasts for 2021-2025.
Simply put, BCH is a low-risk investment with lots of potential rewards. This is something you definitely need to explore before you decide to add BCH to your portfolio.
Is BCH a secure investment?
Yes, we can assume that investing in Bitcoin Cash is a secure investment. This is based on three factors: acceptance, development and support.
To be more precise, one factor that could affect the durability of Bitcoin Cash is its practical use or users’ ability to pay for goods and services. The good news is that the crypto asset has real apps and is accepted by more than 945 online stores and 670 conventional retailers, boosting its investment potential.
Two other factors that can affect it as a safe attachment are an active development team and a large community of supporters who are also at a good level. As pointed out above, Bitcoin Cash has an impressive media presence among bitcoin investors, and its active supporter is the scandalous Roger Vere. And it’s worth a lot.
Is it worth investing in VSN?
Yes, investing in Bitcoin Cash could be worth it. Simply because it is BTC`s most widely distributed fork, which is growing in terms of market capitalization and trading volume. What’s more, its developers and supporters have many ambitious plans for the future and scalability of applications.
Although Bitcoin currently accounts for more than 50% of the entire crypto industry, many investors prefer trading altcoins. The cost of BCH could increase in the coming years as the deficit contributes to growth. And we all know that, like Bitcoin, Bitcoin Cash has a limited supply of 21 million coins, and 18,576 031 pieces are in circulation.
Now you know the pros and cons of investing in Bitcoin Cash, and you can decide for yourself whether to buy it in 2021.
It all depends solely on your investment goals and beliefs. Note that some of the main advantages of Bitcoin Cash over Bitcoin are its increased scalability, lower transaction fees and faster processing times. Bitcoin, on the other hand, ranks first in terms of market capitalization and is widely accepted. Whether you decide to buy BCH or BTC, do not forget that investing in cryptocurrency is a high-risk investment.
