Bitcoin Cash on Coinbase. Should I Invest in Bitcoin Cash?
Coinbase has just added Bitcoin Cash (BCH) on the platform to allow users to send, receive, buy and sell the cryptocurrency. All users will also be credited an amount of Bitcoin Cash equal to their Bitcoin balance during the hard fork that occurred August 1st, 2017. The “listing” has caused BTC to dip. Now Bitcoin Cash is on Coinbase, we see significant support and adoption of BCH. Should you invest in Bitcoin Cash?
Bitcoin Cash on Coinbase
All customers who held a Bitcoin balance on Coinbase at the time of the fork will now see an equal balance of Bitcoin Cash available in their Coinbase account.
“Sends and receives are available immediately. Buys and sells will be available to all customers once there is sufficient liquidity on GDAX. We anticipate that this will take a few hours,” Coinbase said in a blog post Tuesday.
The news seems to be driving further demand for Bitcoin Cash which was already bolstered by CoinBase’s API trial earlier this week. In the last forty minutes, the price of BCH has increased by nearly $700, reaching an all-time high of $3,513.58.
Bitcoin Cash trading is also available on GDAX, Coinbase’s institutional-focused exchange.
Should I Invest in Bitcoin Cash?
Bitcoin cash supporters claim the coin better reflects the vision of Satoshi Nakamoto, the mysterious creator of the Bitcoin blockchain.
Roger Ver, one of the original bitcoin cash backers, tweeted Tuesday that bitcoin cash was the true bitcoin.
“The reason there is so much hostility from Bitcoin Core towards Bitcoin Cash is because Core knows they have stolen the name but are advocating a completely different system than what was originally described by Satoshi,” Ver said on Twitter.”Bitcoin Cash is Bitcoin.”
Other than that, the co-founder of bitcoin.com is defecting to rival Bitcoin Cash. Emil Oldenburg revealed that he is selling all of his bitcoins and replacing them with Bitcoin Cash. His decision was triggered by bitcoin’s high transaction costs and lead times (for approving transactions).
Bitcoin Cash grew out of hard fork from the original cryptocurrency in August. It has block sizes of up to 8 MB (as opposed to bitcoin’s 1 MB) that allow for faster processing speeds, low fees, and more transactions per block
Separately, Australian businessman Craig Wright, infamous for two separate stints as the self-proclaimed creator of the flagship cryptocurrency Bitcoin, recently tweeted out that 2018 will be the year in which Bitcoin Cash (BCH) is brought to its full potential, as limits to what it can achieve won’t be there, and security will be improved.
BCH is a project that aims to bring their specific vision of what Bitcoin should be to the fore. All projects start with one vision, and of course, over time such a vision can change. Bitcoin itself is an example of that. BCH claims to be a return to the original vision of Satoshi.
Bitcoin Cash is slightly different from Bitcoin and it is nearly identical to Bitcoin. There is no technical innovation behind Bitcoin Cash. It is an exact clone with a few changed settings:
- It won’t implement SegWit; and
- It has an 8MB blocksize.
Bitcoin Cash transactions will be a lot faster because there is enough block space to handle all the outstanding transactions at any given time.
Further reading: What Is BCash (Bitcoin Cash)? Is BCash Worth Buying for Investment?
Bitcoin Cash’s price spiked in August because Bitclub Network mined an 8MB block on the Bitcoin Cash blockchain. That block cleared over 37,000 transactions!
The mining profitability of Bitcoin Cash (BCH) has just passed that of Bitcoin (BTC). The result of this shift in mining profitability is already visible in the value of BCH, which has risen over 100% in the span of a few days, from $300 to $700 in August. It’s kind of turnaround happening in Bitcoin world.
In our honest opinion, Bitcoin Cash is here to stay. Look at the Ethereum and Ethereum classic split. Both ETH and ETC are doing great separately. Bitcoin and Bitcoin Cash will each march along their ways.
Another reason for the recent rise in Bitcoin Cash’s price is its increased availability on exchanges. The more available something becomes, the more potential buyers it has. Bitcoin Cash has been added to many exchanges, allowing more people to be able to purchase it.
If BTC really needs to hardfork again, we think then most people will have realized that BCH was the right path to take.
Bitcoin may be winning the battle for investment dollars, but when it comes to attracting mining power, competition is heating up.
At the time of writing, the mining profitability difference between both chains is just 8%. With the next BCH mining difficulty adjustment kicking in soon, the tables may turn yet again. It is possible mining BCH may become more profitable compared to Bitcoin.
Miners tend to focus on virtual currencies which are profitable at the time given the resources utilized in the process.
Other than that, Bitcoin Cash has witnessed growing support from exchanges and wallets since the existence of Bitcoin Cash.
“The community is growing in India and China, I am witnessing it first-hand via the data we collect. I think BCH will continue to rise in price as more users adopt it and miners point their hashing power towards it” said Amith Nirgunarthy, CEO Blockstreet.