Bitcoin Cash came about as the result of a hard fork in Bitcoin, and began circulating in August 2017. Like other, similar cryptocurrencies, Bitcoin Cash is intended to provide consumers with a convenient, cost-effective way to pay for goods and services. Bitcoin Cash can be sent anywhere on the globe, and is already accepted by numerous merchants.
Prices for Bitcoin Cash, which trades under the ticker symbol BCH, really began to take off in late 2017.
What are the Potential Benefits of Bitcoin Cash?
Bitcoin Cash and its peers may offer a lower-cost solution for sending and receiving global payments. If someone needs to send payment overseas, for example, they may incur costs for bank wires or ACH transfers. In addition to those costs, the transaction may also necessitate a currency conversion if two currencies are involved. All of this can add up from a cost perspective, and cryptocurrencies are looking to make the process cheaper and easier than ever.
Payments made using Bitcoin Cash are also fast, and settle very quickly. This is in comparison to payments made by check or electronic transfer which can take 14 to 30 days to settle.
Bitcoin Cash and other cryptocurrencies are considered to be very secure as well, and may potentially help cut down on financial fraud or unauthorized use.
Why do Investors Care?
The cryptocurrency market is in what could be the earliest stages of greater acceptance. These currencies are already accepted as a means of payment by some merchants, and the number of merchants that utilize digital currencies could grow significantly in the years and decades ahead. Cryptocurrencies are also typically of limited quantity. There is only so much Bitcoin Cash that can be mined, and strong demand with limited supply could potentially equate to higher prices as the simple laws of supply and demand take hold.
These currencies could eventually conquer a much larger market share of the global payments market, and could therefore become far more valuable.
Can Bitcoin Cash be Easily Bought and Sold?
Yes. Bitcoin cash is available on numerous cryptocurrency exchanges, and investors can buy and sell as they see fit. These markets do not have the liquidity of bonds, stocks or currencies yet, however, and because of that many investors are taking a long-term view rather than a short-term.
Are Price Charts Useful?
Price charts can be very useful, as they provide a simple, graphic depiction of market activity. Long-term investors may use charts to look for price trends in the market, and may also use technical patterns for buy and sell signals. Thus far, many cryptocurrencies have seen buyers step in on any major dips, a trend that could potentially continue as these currencies gain in popularity.
Is Any Particular Cryptocurrency “The Best?”
Although this may be a matter of opinion, different cryptocurrencies have different features and potential benefits. As with any other type of investing, diversification may be very important, and investors can look to get involved in numerous cryptos to spread their risk and potential rewards.