Withdrawing your bitcoin investments and returns
So many people are getting into bitcoin trading every other day regardless of the divided…
The very first bitcoins were developed in 2009 , but it would be a few years before they managed to crack the code completely. When it happened in the period 2014-2015, the cryptocurrency Bitcoin took the world by storm. After that, Bitcoin was a concept that was on everyone’s lips.
After a few years on the market, however, Bitcoin, or rather: those who worked to develop Bitcoin, supported a bump in the road. In the context of cryptocurrency, this is called a hard fork. Hardfork is a term used when two parties are unable to agree on the way forward.
And what was the result of that? Yes, Bitcoin Cash!
What is Bitcoin Cash?
There were some bitcoin developers who wanted to increase the block size of Bitcoin. However, this wish was not approved, and it led to these bitcoin developers breaking out and starting to develop their own cryptocurrency. This was named Bitcoin Cash.
Bitcoin and Bitcoin Cash are very similar in quite a few areas, but there are different sizes of block size for the two cryptocurrencies. While Bitcoin is known for a block size of 1 MB, Bitcoin Cash has a block size of 8 MB.
What inspired the development of Bitcoin Cash was simply the desire to develop a cryptocurrency that was even better than Bitcoin.
Every single cryptocurrency has its own ticker. This is a code that immediately tells the parties which cryptocurrency it is. Bitcoin Cash’s ticker, is BCH .
The decentralized source code
Both Bitcoin and Bitcoin Cash are made up of blockchain technology and a decentralized source code. This means that anyone can use the code that these cryptocurrencies are made up of, to develop their own cryptocurrency.
The fact that the cryptocurrencies are made up of a decentralized source code means that no third party manages the transactions. This can lead to challenges on several levels, and that is what caused the hard fork.
When the source code is decentralized, it works so that any changes in the source code have to be accepted by everyone – both developers and developers. This is called consensus.
However, it is not a matter of course that one manages to reach a consensus. In a perfect world it would have been possible, but the world is not perfect. The fact that not everyone is able to reach consensus can also be an advantage, because it leads to increased competition in the market. And that’s what happened here.
This separates Bitcoin Cash from Bitcoin
The reason why we differentiate between Bitcoin Cash and Bitcoin is, as mentioned, the hard fork that arose between the developers. And that led to them breaking out of the process and developing a cryptocurrency that was in line with the visions they had.
Below we will take a closer look at what distinguishes Bitcoin from Bitcoin. We are not talking about very many or big differences, but the differences between them are still very important.
Bitcoin has a block size of 1 MB, but Bitcoin Cash has a block size of 8 MB means that the latter has a faster transaction speed than the former. In practice, Bitcoin Cash can make 116 transactions per second, while Bitcoin can only make 7 transactions.
Bitcoin saw the light of day for the first time in 2009. After a few years on the market, the popularity of cryptocurrency skyrocketed. People were curious about the new concept, and there were many who tried to invest. Also people who did not have much experience with it.
As the popularity increased, the transaction speed decreased significantly. It goes without saying that this was not very good, so the block size of 1 MB was very small. Some developers wanted to increase the block size to a very large extent, but as is well known, this led to a hard fork.
This hard fork was the starting shot for what would become the cryptocurrency Bitcoin Cash. The developers started working on it, and the result was Bitcoin Cash which is known for its block size of 8 MB. So this cryptocurrency completes transactions faster.
Bitcoin Cash has been developed based on a different hash algorithm than Bitcoin. In practice, this means that Bitcoin Cash has other hash functions than Bitcoin.
This change protects Bitcoin Cash in the event of a new hardfork. Bitcoin Cash has been in bad weather after the hard fork, among other things in connection with the names of the two cryptocurrencies being very similar.
Should a similar situation arise at a later date, the developers Bitcoin Cash have devised a solution in advance. They have developed a plan in connection with both “replay” and “wipeout”.
In practice, this means that both Bitcoin Cash and any cryptocurrencies that emerge as a result of a possible hard fork, can exist side by side without leading to major problems in connection with the continued existence of any of the cryptocurrencies.
EDA (Emergency Difficulty Adjustment)
Bitcoin Cash is also equipped with another algorithm that the traditional bitcoin lacks. We are, of course, talking about Emergency Difficulty Adjustment. In Norwegian, there will be an adjustment of difficulty, but it is usually only shortened to EDA.
This algorithm acts as a protection for the blocks that make up the cryptocurrency. This protection works best in the event of cryptomining or the like.
In practice, this means that the Emergency Difficulty Adjustment or EDA makes Bitcoin Cash a little more stable than one might expect from another cryptocurrency in the same situation.
A much faster process
Bitcoin Cash will be a good choice for both developers and customers. The reason for this is that Bitcoin Cash is simply much easier to deal with than Bitcoin. And that applies to both parties.
In addition to the fact that Bitcoin Cash is much easier to handle, there is room to go back and make changes to the source code at a later date. This was more or less impossible in connection with the traditional bitcoin.
Customers will also find that the verification process for Bitcoin Cash goes much faster than it does using Bitcoin. Bitcoin Cash also has the ability to deal with multiple transactions at the same time. Bitcoin did not have the opportunity to do this at all.
Theoretically very good, but is it enough?
Above, we have looked at what separates the result after the hard fork (Bitcoin Cash) from the original cryptocurrency (Bitcoin). We have seen that there are no major differences between the two options, but it is clear that Bitcoin Cash has some advantages.
But no matter how good and “better” Bitcoin Cash is in relation to Bitcoin theoretically, one can not escape the fact that Bitcoin is better known than Bitcoin Cash. But maybe it does not have to be negative?
Of course, it does not have to be negative, but in connection with Bitcoin Cash and Bitcoin, it actually is. Since Bitcoin is a better established name, it will cause many to choose Bitcoin, because Bitcoin Cash is simply unknown to them.
Then it simply does not help how good Bitcoin Cash is theoretically. Most people will usually choose the cryptocurrency that is known to them. And in most cases, it’s probably Bitcoin that pulls the longest straw here.
This can affect the price of Bitcoin Cash
A quick Google search shows us that the value of one (1) Bitcoin Cash at the time of writing corresponds to 5203.89 Norwegian kroner. This means that if you own one (1) Bitcoin Cash, then you own NOK 5203.89. So if you own 2 Bitcoin Cash, then you have a little more than a thousand bucks in your account.
But when investing in Bitcoin Cash or another cryptocurrency, there is one thing that is important to be aware of: There is no guarantee that the price will remain that way. The value of Bitcoin Cash can therefore be high when you invest, but decrease after you have done so.
Below we will look at which of the factors may affect the value or price of Bitcoin Cash!
As mentioned, Bitcoin Cash is a result of the traditional bitcoin not being scalable enough. As we also saw above, the scalability of Bitcoin Cash is one of the elements that makes this cryptocurrency better than the traditional bitcoin.
If it turns out that Bitcoin is unable to find a solution to this problem, then this is good news for the developers of Bitcoin Cash. Bitcoin’s lack of good scalability is something Bitcoin Cash can make good money on!
If, on the other hand, it turns out that Bitcoin manages to put in place a scheme in connection with this, then it is not good for Bitcoin Cash. In that case, it could affect the price of Bitcoin Cash in a negative sense.
How the cryptocurrency is regulated (or lack thereof)
Another factor that may play a role is how the cryptocurrency is regulated . Or in connection with Bitcoin Cash (and for the record, with Bitcoin), then it is the lack of what we are referring to.
Both Bitcoin Cash and Bitcoin are based on open source codes that can be used by anyone, and they are not regulated by an independent third party (eg a bank). This is the case for all forms of cryptocurrency at the time of writing.
It helps keep the price of Bitcoin Cash (and cryptocurrency in general) down. But if this should change, then it can lead to this reversal. Then the price for all the cryptocurrencies will skyrocket.
Supply and demand
Bitcoin Cash works in the same way as other markets that depend on supply and demand.
As long as there are not so many who have not opened their eyes to Bitcoin Cash, it will be quite cheap to invest in this cryptocurrency. But as demand increases, so will the price per Bitcoin Cash.
The amount of Bitcoin Cash available to the public will also play an important role in how much it costs to invest in this cryptocurrency.
Competition in the market
The level of competition in the market also plays an important role. The more cryptocurrencies that emerge, the greater the competition in the market. And that, of course, is not good news for Bitcoin Cash (or any other cryptocurrency).
If it should be the case that some new forms of cryptocurrency emerge that become more popular than Bitcoin Cash, then of course the price level of Bitcoin Cash will fall significantly.
In connection with cryptocurrency, how the cryptocurrencies are discussed in the media also plays a big role.
If the media mentions a specific cryptocurrency (eg Etherum ) with a negative sign, it will lead to customers becoming more skeptical of the relevant cryptocurrency than they may have been before.
Potential customers withdraw, and this will naturally affect the price level of Bitcoin Cash (or the relevant cryptocurrency) in a negative way.
That the cryptocurrency is accepted by potential customers
Although customers may not use Bitcoin Cash as a cryptocurrency themselves, they can accept that it exists.
Despite the fact that cryptocurrency has been a thing of the past for quite some time, the general acceptance is not very great. It has gotten better in recent years, but they still have a long way to go.
This will of course also affect the price level of Bitcoin Cash and cryptocurrency in general.
How to invest in Bitcoin Cash
If you want to invest in Bitcoin Cash, then you must first find a player that you want to invest through. There are a number of players in the market today, and one of them is CMC Markets. To invest through them, you need a CFD account.
This is the account you use to buy as much Bitcoin Cash as you want. In practice, this means that you sell USD (US currency) to buy Bitcoin Cash. It is very important to be clear about how this actually works.
There are a number of benefits to investing in Bitcoin Cash through CMC Markets, including trading in a responsible manner. In addition, it is a margin-based trade, which means that you do not have to pay large sums to start the investment.
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