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Bitcoin Cash – More questions than answers

Published 01/09/2017, 09:29 pm
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Investing.com - Since its split from Bitcoin on August first, traders seem divided in their approach to the new currency.

Some believe the technological improvement to the blockchain will undeniably lead to a more efficient cryptocurrency. Others are skeptical of the new Bitcoin Cash, which now has to compete with the original Bitcoin.

"There still are many questions regarding Bitcoin Cash", said Investing.com's senior analyst Clement Thibault.

"There are concerns regarding the value proposition of Bitcoin Cash, as the Bitcoin eco-system will not automatically support Bitcoin Cash".

Indeed, cryptocurrency exchanges decided independently whether to support the new coin. Some, like CoinBase, opted to not support Bitcoin Cash. Others, like Kraken, offer and support the new currency.

Thibault has also noted that Bitcoin Cash's value is entirely speculative as it currently has no use in our day to day lives. "The more Bitcoin is used as a currency to acquire tangible goods, the more its value is engrained in our real world economy, which is an advantage Bitcoin holds over Bitcoin Cash".

Time will tell whether Bitcoin Cash's infrastructure will catch up to Bitcoin's. Mining the new currency has been more profitable than mining Bitcoin during its highs in mid-august and higher prices will surely help creating a strong infrastructure for the currency.

For now, however, the questions far outnumber the answers.

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