Forks in bitcoin and other cryptocurrencies are common, although a consensus is usually reached on which blockchain to use. Otherwise, the two blockchains coexist and a new currency is created. This was the case with bitcoin cash.
A hard fork occurred because there was no consensus on the best way to increase the block size limit. A group of influential miners, developers and investors advocated a protocol called SegWit2x, which was to be adopted on the bitcoin network in August 2017. Those who disagreed with the protocol created bitcoin cash. Supporters of bitcoin cash believed it more closely resembled the original vision of Satoshi Nakamoto, the unknown person or group of people who created bitcoin. Since its launch, bitcoin cash has become one of bitcoin’s most successful descendants.
Bitcoin vs Bitcoin Cash
Bitcoin Cash is a cheaper cryptocurrency with faster transaction capabilities than bitcoin. This is because it is more scalable, meaning more people can transact on the blockchain at any given time. The disadvantage, unfortunately, is that Bitcoin Cash does not have as much investor confidence as bitcoin. In addition, its adoption rate and market penetration are much lower than Bitcoin’s. Another problem is that mining bitcoin cash is less profitable than digging bitcoin. As a result, miners are not as interested in bitcoin cash.
Additionally, BCH has far fewer trading pairs than BTC, making it a less tradable product than bitcoin. All of these disadvantages contribute to the fact that Bitcoin Cash rates and prices are much lower than Bitcoin prices.
When analyzing BTC and BCH, we must point out that bitcoin is not a perfect product because it has scalability problems, is older and slower than BCH, and simply implementing new technologies to facilitate scaling is almost impossible.
What factors affect the price of bitcoin cash?
The price of bitcoin cash depends on several factors.
- First, bitcoin cash was created as an alternative to slow bitcoin transactions, so its value may increase if bitcoin continues to have scalability problems.
- Second, regulation may affect the value of bitcoin cash, as cryptocurrencies are currently unregulated by governments or central banks, but this situation may change in the future.
- Third, the limited supply of bitcoin cash (21 million) may affect its value. Competition with bitcoin and other cryptocurrencies may also affect the popularity and value of bitcoin cash.
