What We Know about Bitcoin Cash

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(Newswire.net — October 10, 2017) — At the beginning of August this year, Bitcoin experienced a “hard fork,” which created a new form of cryptocurrency called Bitcoin Cash. It is an offshoot of Bitcoin, and has been described as being like a branch falling off from a tree to create an entirely separate tree. This means that Bitcoin Cash is a brand new e-currency, which is set to muddy waters even further in cryptocurrency markets as investors desperately try to jump on the right bandwagon.

Going into the Bitcoin fork, nobody knew exactly what to expect. Some advisers were telling people to buy up as much Bitcoin as possible beforehand, while others were warning people to wait until the dust settled. It turns out that those who had invested in the e-currency before the fork were duly rewarded, as they held their bitcoin and also received the same amount of the new Bitcoin Cash. On top of that, the original currency shot to record highs soon after the fork was completed. Before August, the e-currency had never breached the $3000 mark, but after Bitcoin Cash was created, bitcoin rose to an astonishing value of $3,451.86.

As these fluctuations in price show, now is a good time to be trading in the original e-currency. Many people believe that actually owning bitcoins poses some risk, because the currency isn’t controlled or maintained by a single bank or government. Instead of holding the cryptocurrency, these people often trade Bitcoin using Contracts for Difference, which is essentially the same as betting on whether it will rise or fall in value. Sites like ForexBonus provide more detailed information on how to do this, and if you visit now you could be up to speed on how to trade Bitcoin in no time.

Now cryptocurrency enthusiasts are pondering over what to do about Bitcoin Cash. At the time of writing, the offshoot of Satoshi Nakamoto’s innovative e-currency is worth $271.71, but the price has been plummeting. It appears that a lot of the people who received Bitcoin Cash for free looked to quickly trade it and move back to the more reliable and well-established Bitcoin. It would therefore be wise to steer clear of investment for now, but monitor the situation to see if it stabilizes.

Bitcoin Cash is a separate commodity to its predecessor, and has its own brand new blockchain. But some experts are saying that the creation of it was simply a trick to increase block sizes, resulting in more transactions being processed on the blockchain. There have been other clone currencies in the past, but none of them have created a brand new blockchain in the way Bitcoin Cash has. Because of the uncertainty with it, though, many traders are steering clear of it entirely, and encouraging others to do so as well. If it doesn’t have backers, there is no way that it will survive.

As it stands, it seems as though Bitcoin Cash was purely created as a way to boost Bitcoin. For those looking to invest or trade in cryptocurrencies, it’s wiser to stick to the ones we have more information about, such as Bitcoin and Ethereum.