Today there are currently over 7,800 cryptocurrencies globally, and it’s safe to say that keeping up with the best cash alternatives is not as easy as it was ten years ago. Most people only are familiar with Bitcoin and don’t even know about Bitcoin Cash. However, Bitcoin Cash comes with its distinct advantages, and it may be worth adding to your hardware wallet.
This guide will help you become informed by going over one of the most popular cryptocurrencies — Bitcoin Cash. We’ll cover its history and how it differs from Bitcoin. We’ll also list pros/cons and help you figure out which hardware wallet is best for Bitcoin Cash.
History of Bitcoin Cash
To understand where Bitcoin Cash came from, we must look at the history of Bitcoin. Bitcoin (BTC) is a cryptocurrency that launched in 2009. It is 100% digital and decentralized, meaning that the system is not backed by banks or any form of government.
Unfortunately, the BTC blockchain is slow — it can only process an average of 7 transactions per second. This rate seems fast until you compare it to the average speed of Visa (1,700 transactions per second).
The slow transaction speed has plagued Bitcoin since its inception. People have constantly tried to come up with solutions, including Segwit, SegWit2x, etc.
One of the most effective solutions ended up being Bitcoin Cash (BCH). In 2017, developers initiated a hard fork to establish this new cryptocurrency. It has its own blockchain and can process transactions much faster.
While many people were initially against BCH, the cryptocurrency went off without a hitch and is still around today.
Bitcoin Cash vs. Bitcoin
As we’ve touched on, Bitcoin Cash (BCH) has quicker processing times than Bitcoin (BTC). Its fast transactions are thanks to its larger block sizes. While BCH blocks can be up to 32 MB, the average is around 8 MB. This size is large enough to process transactions quickly, especially when comparing it to the 1 MB blocks of BTC.
Note that block size doesn’t just affect transaction speed — it can also influence security. With a larger average block size, BCH is more prone to security risks (though it is still relatively safe).
Another key difference between BCH and BTC is that the latter is less popular. BTC still reigns as the world’s most popular cryptocurrency and has the largest world market cap.
Bitcoin Cash also brings an increased security risk compared to other cryptocurrencies. It’s also not as popular yet, which means you might have difficulty finding counterparties that accept it.
Pros of Bitcoin Cash
Wondering if you should use BCH? Here are a few pros that make it one of the world’s most popular cryptocurrencies:
- Fast processing speeds
- Lower transaction fees
- Easily scalable
- Has a positive outlook for future growth
Cons of Bitcoin Cash
As great as BCH is, it has its disadvantages:
- Security risk
- Limited accessibility
What Hardware Wallet to Use
Despite its cons, BCH is a versatile cryptocurrency for many users. If you want to start using it, consider getting Trezor or LedgerNano.
These hardware wallets give you a place to store your BCH. Seeing as they offer airtight security, they will help you mitigate BCH’s riskier nature. They’re also super convenient as they allow you to store other types of cryptocurrencies, logins, passwords, etc.
Final Thoughts on Bitcoin Cash
BCH is a practical option thanks to its fast transactions and scalability. As it continues to become more popular, it will likely become safer and more widely accepted. It’s definitely worth adding to your hardware wallet today.