Buy Bitcoin Cash (BCH)

What is Bitcoin Cash (BCH)?

People from all over the world have heard of or even used bitcoin. This is the beacon of cryptocurrency, and its incredible bull run in early 2021 has made it shine brighter than ever.

Of course, when there is a cryptocurrency like Bitcoin Cash, we can't help but wonder if it's related to Bitcoin? What do they have in common, just a name?

Let's see what Bitcoin Cash is and whether it is a good investment.

Officially, Bitcoin Cash (BCH) appeared in August 2017 as a result of a hard fork of the Bitcoin (BTC) blockchain.

Hardfork is, in fact, a blockchain divided into two parts, each of which becomes its own cryptocurrency with its own unique blockchain.

Unlike a soft fork, which is an update to the blockchain where only one of the split pieces of the blockchain remains valid. This way, when the fork happens, anyone holding BTC will receive the same amount of BCH.

The formation of BCH occurred as a result of disagreements within the BTC community. BTC miner and developer groups were concerned about its scalability, and they were unsure about the plans of the BTC blockchain to adopt segregated witness (SegWit) technology.

These groups felt that although necessary (with the increase in the size of the BTC network, the blockchain could barely keep up with the increased volumes of transactions), this proposed upgrade did not fit with the decentralized philosophy of Satoshi Nakamoto. As a result, they agreed that the only way to overcome the scalability issue was to increase the maximum block size.

Therefore, a hard fork was proposed in which the BTC blockchain would be split into two parts. One of them will process more transactions at a faster rate than BTC. This is how BCH was born.

Is it possible to mine Bitcoin Cash?

The technology behind BCH is exactly the same as BTC. Cryptocurrency has a blockchain that works like a ledger and records every transaction.

As with BTC mining, miners use powerful computers to solve complex mathematical problems to validate transactions and thus add new blocks to the blockchain. For this, the miners are rewarded in the form of cryptocurrency. The block reward for miners is currently 6.25 BCH after the April 2020 halving.

However, even though the technology is the same, there are some fundamental differences between the two cryptocurrencies.

Bitcoin vs. Bitcoin Cash, main differences

BCH and BTC share a common past, but there are also fundamental differences. The main ones are the following:

• Scalability. BCH was created due to some concerns within the BTC community regarding Bitcoin's scalability issue. Even today, the BTC network can only process 7 transactions per second (TPS), while the BCH network can handle significantly more. This fact was designated as one of the main points during the launch. At that time, the BTC block size was limited to 1 MB, only at the start, the BCH block size was 8 MB. It has since grown to 32MB.
• Mining difficulty. Larger BCH block sizes mean that they require more processing power to mine, which in turn means more cost. On the other hand, this means more opportunities for miners to receive transaction fees. However, perhaps the most significant difference between blockchains is the huge gap in price.
  
• Use and acceptance. Another reason for the division within the BTC community was that it was treated more like a store of value than a real currency. Indeed, even today it is quite understandable. Many media outlets still insist that BTC is "digital gold" with a limited supply. If you're hoping its price will go up in the future, why would you use it to buy something else? Due to low fees and short processing times, BCH is expected to overtake BTC as a true currency – in theory, anyway.
  

Is Bitcoin Cash Successful?

BCH was touted as Bitcoin Plus at the time of its launch. “Bitcoin… but better!” So, has it managed to achieve the resounding success that its creators hoped for?

Well, not quite. Its developers had to deal with several issues that ultimately affected its price and the success of the cryptocurrency throughout its short life.

Over time, Bitcoin continues to occupy the first place in the ranking of cryptocurrencies, while Bitcoin Cash barely holds on to the top 30. Invest in Bitcoin Cash is still less attractive than invest in Bitcoin.

Believe it or not, BCH had a hard fork too! Actually, not just once. The first of these was launched in November 2018, when the blockchain split and a new cryptocurrency, Bitcoin SV, was formed. "SV" stands for "Satoshi Vision". Satoshi Nakamoto is the creator of Bitcoin.

Similar to the original BTC fork, the BCH fork arose from a dispute between developers over the direction of the blockchain, described as a “civil war” between different parts of the BCH community. Essentially, it all came down to the block size. On the one hand, Roger Ver and company wanted to keep the block size at 8MB. On the other hand, there was Craig Steven Wright and company who wanted to increase the block size to 128MB.

Further chain splits occurred every six months, resulting in a network upgrade. However, even BCH fan Roger Ver expressed his dissatisfaction with this, stating that the planned “controversial hard forks” are a “big problem” and that he “wish it would end”.

Regular hard forks are generally not seen as a positive thing for cryptocurrencies as they destabilize the system. Indeed, this is what happened with BCH. This is reflected in its price.

Bitcoin Cash as a payment method

Since BCH was founded with the goal of providing consistent and efficient payment, there has been some success in this area in recent years.

As a sure sign of its rising status, especially in October 2020, BTH was listed by PayPal as a crypto (along with BTC, Ethereum, and Litecoin). Now customers will be able to buy and sell goods using their accounts. In February 2020, it was estimated that over 4,300 stores worldwide now accept BCH (so that number is likely to be higher by now).

Is Bitcoin Cash a Good Investment?

It is very difficult to answer this question. invest in Bitcoin Cash in New Zealand is certainly of some interest, but Bitcoin and Bitcoin Cash have maintained a close correlation with each other for a long time. This means that the success of Bitcoin Cash is still closely linked to the success of Bitcoin.

Even though BCH was ostensibly an upgrade of BTC, it will most likely always be in its shadow. The thing is, this is not BTC and every cryptocurrency is likely to be in its shadow just because of this simple fact. In fact, BTC is so popular because it is the first and most famous cryptocurrency.

This is where the greater percentage of funds and institutional investment is and probably always will be. Disagreements within the BCH community also hampered its development. However, as a real spendable cryptocurrency, its shorter transaction times and larger block sizes certainly give it an advantage over BTC.

How to invest in Bitcoin Cash in New Zealand?

BTC is a fairly popular cryptocurrency, so investing in Bitcoin Cash in New Zealand is very simple. You can buy BCH on any popular exchange.

Why is it worth using popular and well-known exchanges? Because they provide a higher level of protection and are more reliable. Yes, no one will give you 100% guarantees of protection, but still sites out of 10 provide a higher level of security.

Even if something happens to your funds, there is a high probability that such sites will compensate you for your losses.

The most popular, reliable and popular exchanges include:

1. Binance;

2. Okex;

3. Huobi;

 4. others.

But you can choose any other exchange that is more interesting for you and meets your requirements.

Long-term investments involve not only buying Bitcoin Cash, but also long-term storage of funds. It is not enough just to buy BCH, they must be stored in a safe place.

To do this, you should choose a reliable wallet.

Now there are a lot of different wallets, but hardware wallets still offer the greatest security. The most popular are:

• Trezor.
• Ledger.
• SafePal.

After purchasing Bitcoin Cash, you can transfer these funds to a hardware wallet and keep them for as long as you log in. In this case, invest in Bitcoin Cash in New Zealand will be as secure as possible.

How to trade Bitcoin Cash (BCH)?

Invest in Bitcoin Cash is not the only way to make money. This is just one earning strategy and may not be the most profitable, given that BCH has dropped significantly in price compared to BTC.

For many, BCH trading is more interesting. In this case, you buy Bitcoin Cash not for a long period of time, but for a short period of time. You will earn on a short-term increase in the value of an asset.

For trading, a direct buy BCH is not very interesting. In this case, you can only play for a raise, i.e. only buy Bitcoin Cash. But, if you choose derivatives from BCH for trading, then you can work with the trend in both bull and bear markets.

Where can I buy Bitcoin Cash in New Zealand? You can work with derivatives both on the stock exchange and in a brokerage company. In the first case, you can trade, for example, BCH futures. In the second case CFD on BCH.

The easiest way to buy Bitcoin Cash in New Zealand is of course to open an account with a brokerage company. They offer favorable trading conditions, the ability to trade on a demo account, work directly with fiat money, provide quality service, provide a high level of reliability and provide good trading terminals.

Whether it is worth investing in Bitcoin Cash or trading this cryptocurrency is up to you.

As the popularity of digital money becomes more apparent and more people start to actually use the cryptocurrency and not see it as storage, this could bode well for the development of BCH. Therefore, in theory, long-term investments in Bitcoin Cash can bring good returns. But the market is always associated with a certain risk. Therefore, investing in any asset should not forget about the risks.