You don’t have to tell us. We know the cryptocurrency world is hard to follow, but right now, in 2021, it seems like a necessity instead of a simple way to invest money and save it for the long run.
Therefore, it is normal if you want to take your time to learn about it and all the cryptocurrencies available in the market. Though, you must know by now that it won’t be easy to get started nor continue in this world once you have, somehow, got used to it.
But where should you start, or what cryptocurrencies are worth your time? Bitcoin Cash (BCH) is definitely one to look out for.
We are confident you know about Bitcoin, and you probably think if it isn’t the same. Short answer: It isn’t. But things are a bit more complicated than just giving you this reply.
Therefore, we decided to focus on it for once and instruct you on what you should know about it and if it is worth your time once you are introduced to this world or as a person who needs to find a new alternative inside it.
Understanding Bitcoin Cash (BCH): What Is It?
For starters, you are right; Bitcoin and Bitcoin Cash are very similar since they come from the same creator. However, there are several factors and parameters to understand.
Bitcoin Cash (BCH) is a cryptocurrency like any other, but it incorporates some unique features and changes that make it stand out, unlike Bitcoin and Ethereum (or others that come to mind).
Instead of being a copy, it is considered a ‘fork’ of Bitcoin. However, proponents argue that Bitcoin Cash more closely adheres to the original vision of creating a peer-to-peer electronic cash system as laid out in a 2008 white paper written by the protocol’s founder, who goes under the pseudonym, Satoshi Nakamoto.
To keep it simples, we will focus on the overall concept and the features you should focus on when investing in it.
Bitcoin Cash is an electronic money system that works peer-to-peer. It does not depend on any central authority, such as a government or financial institution, which makes it a cryptocurrency in the first place: It works as a decentralized currency.
When it comes to Bitcoin Cash’s core features, these are the ones to keep in mind:
- All are welcome: BHC is not controlled or owned by anyone, which means you don’t have to ask permission to use it but rather obtain as many as you want or are allowed to for specific uses set.
- Pseudonymous: Transactions are not linked to identities. This allows Bitcoin Cash to remain free and open to all without restriction and providing safe transferences without compromising users.
- Completely transparent: The blockchain records all transactions. Blocks that connect to make a chain are added to the ledger and updated on a regular basis. This makes it possible to see all ownership history and eliminates the possibility of fraud.
- Distributed: A network of participants called ‘nodes’ stores the public ledger (blockchain). This allows information to be preserved for a long time and without any issues.
- Rules and protocols followed: To reach a consensus on the ledger’s state, nodes must follow a set protocol (or rules). This consensus is what determines the truth about who owns what. However, the protocol can be modified as required by participants, although it requires a high degree of consensus to make any changes. Bitcoin Cash is a quasi-political platform where participants form a social contract.
- Unchangeable: Because transactions are recorded in the blockchain, they cannot be altered.
- It is safe: “Miners” compete to add blocks to the ledger, also known as the blockchain (Proof of Work). PoW mining has both hardware and energy costs. This contributes to the network’s security. Attacking the network is costly, and the attacker cannot make a direct profit.
- Supply fixed: There will be 21 million coins ever created. Bitcoin Cash is a hard asset like gold or land and allows people to store their value digitally over long periods.
- Low fees: Bitcoin Cash allows for reliable, quick, and affordable transactions regardless of their value or location (including cross-border transactions). It is an alternative to Mastercard and Visa payment networks.
With Bitcoin Available, Why Bitcoin Cash? – Its History & Purpose
It is hard for those starting in cryptocurrency to understand why a similar coin would be created by the same founders of Bitcoin (who remain anonymous to this date).
Well, to understand this process, it is important to mention the issues BTC has in transactions and other operations.
For it, we can dive right straight into the history of BCH.
On January 3, 2009, the first Bitcoin was officially mined, and since then, the asset has seen a surge in popularity.
However, even when its price hit $50k not too long ago, it still has scalability problems and long transaction times, which even when it continues to be the favorite in terms of costs and investment, it doesn’t mean it is the most stable.
Now, what does this have to do with Bitcoin Cash? Simple. This one was created to solve the issues of its predecessor.
Bitcoin Cash was created in 2017 to solve Bitcoin’s slow transaction speeds as the main goal. Basically, it is a hard fork in the Bitcoin blockchain.
This means that the network was “split” at a specific block. This block contains a fundamental protocol change, which invalidates all blocks before it, and nodes must “upgrade” their chains to continue using them.
Yes, we know we kind of made that complicated, but this technical language will be part of your life from now on.
However, to make it simpler, just look at it as a huge software update that allows the old network to continue in a different direction than the new one.
The Bitcoin Cash fork created its own future and allowed the old one to be more versatile at the same time.
But why would people consider creating this BCH?
Different miners and developers from the Bitcoin network decided to fork it, hoping to remove its limitations, as previously mentioned.
Many people assume that Bitcoin is intended to be used as a digital currency and not as a store of value. If transactions take several minutes or even hours to complete, how can Bitcoin be appealing to mainstream users? And we still have to mention the high transaction fees.
Although this sounds great so far, there are many reasons why people are opposed to the hard fork.
Bitcoin Cash, for example, has larger blocks that require a more complicated mining process. This could lead to a collapse of miners who don’t have the necessary computing power.
In the end, this can make the platform more centralized among the most powerful miners, such as corporations.
Then, there is the forking process. The fork gave Bitcoin Cash to those who had Bitcoin at the time. Even when this is common and makes sense, it was just a method to get richer for many.
Despite those claims and problems, a great investor in cryptocurrency, Roger Ver, claims it is more “usable” than Bitcoin because of the larger transaction sizes.
With this part of the history and controversy, we can move on with an exciting part: Bitcoin Cash started to have its own forks, like Bitcoin Cash ABC (BCHA) and Bitcoin SV (BSV).
With a few minor differences, the former is very similar to Bitcoin Cash. It reinvests 8% of each block reward into the network and acts as a kind of salary for open-source developers.
Meanwhile, Bitcoin SV, also known as Bitcoin Satoshi Vision, is distinguished by other features.
It is focused on stability and provides block sizes that are larger than Bitcoin Cash. This means that the transaction size can jump to 128 megabytes.
But, the consensus was reached that there should not be a limit until billions of transactions have been made. The community will then be able to see how the network is performing and can vote on a block-size cap.
Going back for a bit, before these forks appeared or were created, the success of Bitcoin Cash showed despite the controversy.
Bitcoin Cash started trading on August 1, 2017, at $240 and then went up to $4.355 on December 20 during the same year.
However, it dropped 88% to $519 in August 2018.
The second hard fork was contested in November 2020. BitcoinABC was the leading node implementation, and BCHA was created.
Its current price at the moment of writing this article is set at $673.22, which has been dropping though many investors believe its peak will come back very soon.
Buying & Using Bitcoin Cash (BCH)
After all that introduction, history, and purpose, are you interested in buying and investing in BCH?
If you ask us, even when it has been dropping during the last few weeks, it continues to be a great investment in terms of price and how much continues to be available in the market.
With its creation in 2017, the currency is destined to have a supply limit just like Bitcoin, which is set in the same number: 21 million.
This means you are on time to purchase a few before it either goes up or represents a small loss while waiting for it to change.
However, is it worth your time and money?
We believe it isn’t that important to explain how you can use Bitcoin Cash since many people see them as a way of payment nowadays.
But there are a few aspects to consider when it comes to its uses, which is why we decided to go over the main ones.
Bitcoin Cash’s core features, which are described above, make it understand the principles of its uses.
First, it is clearly set as both long-term storage of value and an extremely efficient medium of exchange.
These two uses, plus the open and decentralized nature of Bitcoin Cash’s protocol, make it a way to support and enhance global economic freedom.
So, basically, you have three main uses, which we will explain a bit more:
- Long-term storage of value possibility.
Considering that BCH’s supply will never go over 21 million, you ought to remember this is in the Bitcoin Cash protocol code established by developers and creators.
That being said, it allows users to decide how the protocol develops for the simple fact it is a decentralized network. Since it is not in participants’ best interests to dilute their holdings by changing the protocol, the 21 million-coin limit will almost always remain in effect.
As the code is written, the rate at which new coins are added gradually drops along with a schedule. The issuance rate drops in half every four years, so Bitcoin Cash is, therefore, a “disinflationary asset.”
Bitcoin Cash’s set-in-stone supply schedule makes it a unique hard asset and increases its value over time even when considering the dropping prices.
- High-quality medium for exchange.
Bitcoin Cash allows peer-to-peer payments between people, which is much like cash but in the digital realm.
This is the main use people consider when investing in cryptocurrency. Still, when it comes to Bitcoin Cash, fees are usually less than one penny per transaction, which makes it much more affordable than regular ones.
Also, settlements occur almost instantly, regardless of the participants’ physical locations.
BHC is useful for cross-border trade and remittances and daily transactions such as grocery shopping and can also be used for micro-transactions like tipping content creators or rewarding app users due to its low fees and transaction times.
- Offers economic freedom.
Economic freedom allows individuals to acquire and freely use their personal resources in any way they choose.
This can be done independently or with the help of others.
It is an essential component of human dignity and a fundamental human right. It is the central tool to enable economic freedom. Money can be used as both a storage and exchange vehicle.
Bitcoin Cash, unlike national currencies, provides strong protection against monetary theft, censorship, and devaluation via uncapped inflation.
A Lower-Risk Investment
No one can deny cryptocurrencies and the market, regardless of which one they are talking or referring to in specific, is that it is volatile and unstable. You never know when you might end up losing lots of money or earning much more.
Therefore, it cannot be determined as a low-risk investment when you never know what will happen regardless of how the market performs and your predictions.
This is why we believe that local lead generation is more cost-effective and profitable since you don’t take a big risk, and you are betting on an actual business that depends on you alone.
We find local lead generation easier and more efficient than you might think. If you’re lucky or more like work hard, you could even make thousands of dollars in a few months, and your ROI is guaranteed along with revenue.
Although lead generation takes longer, it is safer. You find small businesses in your region, save their contact information and then reach out to them to build their websites.
After you’ve built every website, you don’t need to think about it anymore. Instead, you can forget that it exists.
You just need to pick a niche or type of business to start. Make sure that the business requires your lead generation services, which both small and large companies require.
There are two major differences between Bitcoin Cash and lead gen:
- To make it profitable or even start your business, you don’t need to spend a lot like with BCH.
- It doesn’t depend on a market, stock, or supply. It is all hard work.
- You can also use it to grow personal businesses, while cryptocurrencies are only coins to pay and save money.
- There are no worries about market saturation or competitors. Local businesses are constantly opening (and not just local). This will ensure that you can continue to grow as a lead generator.
How to Get Started with Lead Gen
We want you to keep in mind that you will need some skills, but the #1 course that we recommend can solve all your problems.
You will be able to understand the concept behind lead generation and why you should concentrate on local one instead of global lead gen.
It will not take long to build a network of websites and get paid by the businesses that you help. You can make thousands of dollars a month without even lifting a finger after investing enough time and having a team (later) for the tasks.
If you are interested, we are confident you must have lots of questions answered right here!
Here’s Our #1 Recommended Online Business Model:
Interested in starting an online business to build passive income? Check out the local lead gen business model. Click here to learn more.
