Coinbase, one of the most popular exchanges in the world right now, has just announced that they’re now allowing their users to buy and trade Bitcoin Cash. But the question is: should you buy BCC? And I can add: Is Bitcoin Cash a safe coin to invest in?
This is what we’re going to talk about in today’s article and you’ll see that, just as is the case with most cryptocurrencies out there, the answer itself is not very simple.
First of all, it’s worth noting that at the moment of writing this article, following Coinbase‘s announcement that they’re now supporting BCC transactions, the price of the cryptocurrency went up from around $2,000 on December 19th to $3,300 on December 20th. The spike in traffic might also be influenced by Bitcoin.com founder Emil Oldenburg’s decision to sell all his BTC for BCC, considering the former “virtually unusable”. You can find out more about his decision here.
So, to sum it up, a very important person in the cryptocurrency world decided to switch from Bitcoin to Bitcoin Cash. This shows huge support for the newer currency, but why is this happening?
There are some serious advantages that BCC has over Bitcoin, such as:
– faster processing speeds
– lower transaction fees
– more transactions allowed per block
With the increasing popularity of Bitcoin, transactions are now taking several hours and fees are extremely huge. For example, yesterday I made a small transfer of around $600 worth of Bitcoin and the transaction fee was close to $30! Even more, the whole thing took 6 hours, which made me miss an important potential purchase.
Right now, the average transaction fee when BCC is involved is around $0.30 and they are processed a lot faster.
Basically, we can say that BCC is the faster, upgraded version of BTC. But does this mean that you should buy Bitcoin Cash instead of the regular Bitcoin?
Despite the obvious positives the newest coin has to offer, it’s difficult to anticipate which one will get more popular on the market. Looking at the tech and bonuses, it’s pretty obvious that BCC is the better coin since it is faster and transfers are cheaper.
But we shouldn’t forget that the Bitcoin saw a massive gain this year: it started ar around $1,000 in January and reached a maximum price of over $19,000 in December. On the other hand, BCC grew 380% since its launch in August, which is really good as well.
Bitcoin is right now the most popular cryptocurrency out there and many retailers and institutions are accepting it as a payment method, with more on the way to implement it. This means that the BTC is more established and, even though there are better currencies out there, it might stick for longer simply because more people use it.
In the end, if you are to pay your bills and the company only accepts one coin, you have no other option than to pay using that coin… and right now that coin in my analogy is BTC.
But things are changing and everything evolves at a huge speed in the cryptocurrency world, which is still fairly young compared to everything else. This means that, even though right now – and probably for at least a couple of years to come Bitcoin will remain the dominant coin on the market, other coins like BCC have a high chance of being accepted by the masses and making the push to the mainstream.
Probably companies that accept Bitcoin will have it easier to make the transition to BCC or ETH or other coins, while exchanges will accept more and more of the big coins, making it easier for us to switch from one to another.
My take? Bitcoin Cash shows a lot of promise and as more and more big names switch to supporting it, there’s no other way for it than go up. 2018 might be the year of the BCC and it might record massive gains, similar to those that Bitcoin recorded this year.
But can anybody know for sure? Absolutely not. It’s still a risk, like everything else in the cryptocurrency world. If it’s a risk you’re willing to take, you can get your own BCC right now over at Coinbase or my favorite exchange out there, Cex.io.
But what do you think? Is BCC going to become more valuable than the Bitcoin? Or at least, is is a good investment strategy to buy some Bitcoin Cash at its market value today (around $3,000)?