Bitcoin Cash: The Pending Update and Recent Halving Event
Bitcoin Cash is a hard fork of the Bitcoin blockchain, and while it doesn’t appear in our blog very often, there are several exciting things coming to the platform this month and next month.
Whether you are here to read about the halving event, or maybe the coming upgrade, keep scrolling as we have all the information about the Bitcoin Cash platform in this article.
What is Bitcoin Cash?
Bitcoin Cash is a hard fork of Bitcoin. This means that Bitcoin Cash was once part of the Bitcoin blockchain, however, over the years, the creators of the platform disagreed, causing a hard fork. A hard fork ends with two separate blockchains, meaning Bitcoin Cash is no longer part of the Bitcoin platform, although the names are similar.
Bitcoin Cash operates similarly to Bitcoin with a proof of work algorithm requiring miners to mine blocks. However, it allows a larger number of transactions per block. The larger number of transactions per block allows the blockchain to operate more efficiently than Bitcoin.
Both Bitcoin and Bitcoin Cash have a cap of 21 million coins, making them deflationary. Despite the blockchain’s similarities to Bitcoin, it has failed to reach the same widespread popularity and ranks fairly low on the list of popular cryptocurrencies.
Unfortunately, despite the fact that Bitcoin Cash decided to split from Bitcoin, controversy has remained among the creators, leading to further forks. Currently, there are two hard forks of Bitcoin Cash, Bitcoin Satoshi’s Vision and eCash (previously Bitcoin ABC).
Related: A Fork in the Road: Bitcoin vs. Bitcoin Cash
The Bitcoin Cash System Upgrade
Bitcoin Cash undergoes frequent upgrades because of the fact that the creators of the platform are still around (this is one of the reasons that the blockchain split from Bitcoin). The next pending upgrade will come on May 15th, 2024.
This upgrade will increase the block size limit across the network with regularity using an algorithm, and it is considered a necessary upgrade as it corrects some of the blockchain’s current vulnerabilities. Currently, Bitcoin Cash is highly susceptible to social networking attacks and DOS attacks, and this upgrade aims to fix that by reducing a known bottleneck.
There isn’t too much information about the compatibility of the pending upgrade, but more information will be released as the event draws closer.
The Bitcoin Cash System Halving Event
On Wednesday, April 3rd, Bitcoin Cash completed its second ever halving event. Prior to the event, prices rose steeply, due to speculation that the halving event would increase the value of the blockchain, just as it did with Bitcoin.
Despite this speculation, the price was anything but stable as the halving event was completed, mostly due to the fact that Bitcoin Cash is just not popular enough of a cryptocurrency.
In fact, CoinDesk claims that many known miners had switched over to mining Bitcoin before the event (because the two blockchains use the same algorithm), meaning that the halving event actually led to a decrease in price. These miners stated that the block rewards for Bitcoin Cash simply weren’t sufficient.
Not only that, but the artificial price spike leading up to the halving caused several large holders to close their Bitcoin Cash positions. While the price of Bitcoin Cash is currently holding steady, it didn’t have the increase that investors thought it would have as a result of the halving event, causing them to exit the blockchain.
This was only the second halving event for the platform, the first having happened about four years ago in April 2020. There will be many more halving events in the future of the blockchain.
Related: Bitcoin SV (BSV): Satoshi’s Vision & Big Blocks
What Do These Events Mean for Bitcoin Cash?
Ultimately, despite both of these events being big news for the Bitcoin Cash platform, we doubt that either will have a profound impact on price or popularity. While an upgrade will make Bitcoin Cash a more secure cryptocurrency, it will not correct any of the issues that cause individuals to stay away from the token in the first place.
One of the problems with Bitcoin Cash is that it is governed by people who want to change Bitcoin, but they are very disjointed in the way they want to do so. This has led to additional forks and, as a result, has hindered its growth as a cryptocurrency as investors shy away from an unsure investment.
Plus, Bitcoin is a hard cryptocurrency to contend with, and the fact that Bitcoin Cash operates almost exactly the same way doesn’t do it any favors. Because the most recent halving event didn’t have a profound effect on the coin, we doubt that any future halving events will have any remarkably different effects.
Should You Buy Bitcoin Cash?
Honestly, Bitcoin Cash isn’t the worst cryptocurrency out there, but it isn’t the best, either. It’s a hard token to promote because of the governance issues and constant changes. If you like the technology behind Bitcoin Cash, then know that Bitcoin is the same—and you’ll likely find you like it better.
Of course, there are some uses for Bitcoin Cash, and it is possible that it is a decent investment vehicle in the future, but we can’t say this with any certainty. If you want a cryptocurrency with a block ceiling and proof of work algorithm, Bitcoin Cash is an option, but Bitcoin is a better choice.
Before you consider an investment in Bitcoin Cash, you should discuss your decision with someone you trust or a financial advisor. They will better be able to guide you to invest in the right blockchain project for you.
Overall, we hope this article has brought you up to date on the happenings of the Bitcoin Cash platform. If you are interested in learning more about investing, check out our related article about How to Invest in Crypto and Make Returns.
