A lot of people wonder whether they should buy Bitcoin Cash or just Bitcoin. The truth is that if you are an investor then you should certainly own some cryptocurrency, even if you just have a very small amount. The potential of the technology is far too great for anyone not to have a part in this. If you haven’t got any of this currency right now. It’s a great idea for you to start small and it is also a great idea for you to make the decision as to whether you want to increase your own exposure.
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So when Satoshi Nakamoto announced Bitcoin, he stated that there was no trusted third party and that the whole thing is peer to peer. The main thing that you need to take note of there is that there is a big difference between cash and money. In the real world, we are using cash on a very irregular basis. Cash doesn’t involve any third parties and you have absolutely no dependence on anyone else. There is no intermediary and it is paid from A to B. It is used for very small transactions and they are not hard at all to try and process. You can easily use it for small transactions and you can even give money to buskers in this way as well. The idea of Bitcoin is to try and get the benefits of cash, but through an online payment system. The ultimate idea is that no third parties are involved. The problem here is that the developers of Bitcoin felt as though they strayed from the goal when they created the currency. The transaction fees were far too high for those who wanted to make small payments and the transaction times were too slow as well. The criticism that came from these people was completely valid.
So Bitcoin, over the years really has become speculative and now it is more like a digital gold when compared cash. Gold has its own uses when you look at the value and at one point it was even the backbone of the monetary system. Its use in payments however has always been very, very limited and a lot of people started to collect gold, but they always liked to pay for things with paper, nickel, silver or even copper. Nick Szabo worked to develop the precursor to Bitcoin and this was called Bitgold, and things have changed a lot since then.
So Bitcoin Cash forked out of Bitcoin and everyone who has ever had Bitcoin got some Bitcoin Cash. Bitcoin Cash is way better for payments, the transactions are lower and it is much faster as well. The problem that it has is that there are tons of other currencies out there that are just as good, and Bitcoin Cash doesn’t really do anything to try and stand out. Other currencies include Dash, Stellar and ZCash.
Bitcoin fans, or at least the diehard ones have always stated that Bitcoin Cash has tried to steal the spotlight for Bitcoin. They believe that people who are buying the cash version are all being misled into thinking that it is the same as Bitcoin when this is not the case.
The politics behind the fork could be handled way better than they were and no matter what happens right now, everyone who is reading this is probably an investor. For that reason, it’s time to decide which is better, Bitcoin, Bitcoin Cash or both?
Bitcoin is the backbone of all things crypto and there are better coins out there. Bitcoin has a network effect and you should certainly own some. Bitcoin Cash is probably a better investment but when you look at the Bitcoin community you will soon see that there is some fighting among some of the developers. Bitcoin Cash seems to be a more unified front.
So this happened last August when Bitcoin was sitting at around $2,800. Bitcoin Cash began to start on the market at around $250. Bitcoin reached highs of $20,000 at one point and Bitcoin Cash then went up to $4,000. Bitcoin is now at $7,500 and Bitcoin Cash is at $1000. When you think about it, it is Bitcoin Cash that has been able to outperform the rest.
Bitcoin Cash is far more volatile and the risk is much greater, but if you were to look at which one you should invest in based on the chances of the price going up then Bitcoin Cash is certainly the way to go. One way to look at this would be to see Bitcoin Cash is silver and Bitcoin is gold. The Bitcoin Cash however, is far more likely to make a comeback when the gold Bitcoin wears thin.