Bitcoin Cash is the forked version of Bitcoin that offers faster transactions at a lower cost. It is only suitable for small transactions. In 2017, Bitcoin was split into two cryptos: Bitcoin SV and Bitcoin Cash. The main purpose of creating new crypto is to acquire more transaction records in a single block, which is possible only with larger-sized blocks. Later, in 2018, Bitcoin Cash was also forked into Bitcoin Cash ABC. Indeed, BCH is the improved version of BTC with similar technical features and the same number of coin supply (21 million).
Bitcoin Cash is a decentralized distributed ledger blockchain system that does not allow third-party involvement in the transaction process. It is transparent and tracks all the transactions between senders and receivers, eliminating the chance of financial fraud or malicious attacks. The only difference is lower transaction costs and faster block time than Bitcoin.
It has a different hash algorithm which reduces the chance of transaction failure. It can process an average of 116 transactions per second, whereas Bitcoin performs only seven transactions per second. Indeed, Bitcoin Cash is an asset like Bitcoin with a similar market cap, but it is not as popular as BTC. It is a better way for a borderless transaction, especially for retailers. Experts always prefer BTC over BCH for larger transactions such as equipment, house, car related transactions.
However, in 2017, the BCH supporters were divided into two parts. On one side, supporters wanted to use it as a medium of transactions, and on the other side, some wanted it to store it as an asset. Read our BCH price prediction to check how the price grows in the long run.
At the time of writing this post, BCH was trading around $136.13. The daily chart of BCH seems to be bearish, and $180 will work as a strong resistance level. MACD and RSI are bearish; candlesticks are around the baseline of the BB. Thus, we think it is not a good time to invest in Bitcoin Cash for the short term.
On the weekly chart, BCH has been in a downtrend. From the last week of November, candlesticks have been forming in the lower range of the Bollinger Bands. That suggests it is not the time to invest for the long term. Bitcoin Cash (BCH) is a forked version of Bitcoin; the future depends on market adoption.
If you like the fundamentals of Bitcoin, you should prefer BTC instead of BCH for long-term holding. However, if you want, you can invest for the short term with a target price and stop loss.