Nov 20, 2018 00:30 UTC
Nov 20, 2018 at 06:17 UTC
Pros and Cons of Bitcoin Cash
If you have read our guide to Bitcoin Cash, you would know that this great fork of Bitcoin is currently one of the top cryptocurrencies of the market. Based on market cap, it is firmly holding on to the fourth position after Bitcoin (BTC), Ripple (XRP) and Ethereum(ETH). Given that it’s doing rather well in the market right now, it is clear that it must have some major pros going for it. However, at the same time, there are also cons of Bitcoin Cash that must be factored in. In this article, we take a keen look at the major pros and cons.
Pros of Bitcoin Cash
There are many reasons to invest in Bitcoin Cash and most of them arise from its multiple merits. Let’s have a look.
1. High Efficiency of Bitcoin Cash
Unlike Bitcoin, which limits the maximum block size to 1MB, Bitcoin Cash has gone for an 8 MB block size. Naturally, having a larger block makes sure transactions get validated and processed much more quickly. The overall scalability of the network increases and the fees of the transactions fall, creating an absolutely win-win situation.
2. Safe Against Possible Replays and Wipeouts:
Now that the Bitcoin Cash hash wars are raging in the crypto world, it has been divided into several camps within the BCH community. Now even if the coin does split, the users will not be inconvenienced as these Bitcoin fork was designed to have a great safety mechanism against replays or wipeouts.
3. Listed on Major Cryptocurrency Exchanges:
Bitcoin Cash is listed on almost all of the top cryptocurrency exchanges and this ensures a high degree of ease and convenience in buying and selling this crypto coin. This drives adoption and increases the investment-potential of this fork of the pioneering cryptocurrency Bitcoin.
Cons of Bitcoin Cash
We have to take every good thing with a pinch of salt and Bitcoin Cash is hardly any different. Here, we take a quick look at the major problems Bitcoin Cash faces:
1. Investor Faith in BCH is Low:
Because of increased concerns about centralisation in BCH and because the branding of this coin has been unable to establish the definite distinction between itself and Bitcoin, the trust of investors in this cryptocurrency often tends to be on the lower side of the spectrum.
2. Low Adoption of Bitcoin Cash:
A major issue that is plaguing Bitcoin Cash is the lack of high rates of adoption. No matter how visible backer Roger Ver is or how efficient the blockchain network itself is, the cryptocurrency will stagnate after a point if it is not utilized across various use cases. High adoption is essential to drive the growth of any cryptocurrency and the lack of that is troubling Bitcoin Cash for a while now. Ripple is frequently used as a cross-border payment protocol and Bitcoin enjoys acceptability from a substantial number of vendors. A quality like one of these is missing in Bitcoin Cash, as it does not enjoy any degree of mainstream adoption.
Since the future of Bitcoin Cash looks quite bright as of now, it wouldn’t be all too unwise to get some for your crypto portfolio.