Hello everyone, this is the Dardion editorial team, and today we will explore one of Bitcoin’s hard forks, or “the true meaning of decentralization” that people are following. What are the prospects for Bitcoin Cash, and does it belong in your portfolio before the altcoin season of 2025? But always remember to DYOR (Do Your Own Research) and that we are not your financial advisors.
First, let’s break down what a hard fork is below.
What is a Hard Fork in Blockchain?
A hard fork in blockchain is a significant event where changes are made to the source code of the network that lead to incompatibility with previous versions, resulting in the blockchain splitting into two separate branches. To understand this, imagine the blockchain network as a large book that all participants read, and every time a new page (block) is added, everyone receives an update.
Example with Friends:
Imagine a group of friends who play the same game together every day. They have common rules that everyone agrees to follow. But one day, some friends decide to change one of the rules—for example, introducing a new way to score points. Now the friends have two options:
- Everyone agrees to the changes and plays by the new rules.
- Or they split, and one group continues to play by the old rules while the other plays by the new ones.
When it comes to blockchain, network participants act according to a common set of rules encoded in the programming. These rules determine how new blocks are created, transactions are processed, and various processes function within the network. If someone wants to change the rules—like improving speed or security—they can update the code. But sometimes the update proves incompatible with the previous version, and not all network participants want to adopt it. That’s when a hard fork occurs—resulting in a split chain that creates two independent versions of the blockchain.
What’s the Difference Between a Hard Fork and a Soft Fork?
- Hard Fork: Creates two separate networks that can no longer exchange data with each other. Users must choose one version.
- Soft Fork: A less significant update that is compatible with previous rules. Network participants can gradually transition to the updated version, and both versions can interact with each other.
Popular Examples of Hard Forks:
For example, Ethereum and Ethereum Classic—this hard fork occurred due to an attempt to fix a security issue. In 2016, a project on the Ethereum blockchain known as the DAO was hacked, resulting in the loss of significant funds. Opinions were divided on whether to revert changes to recover the stolen money. The majority of the Ethereum community agreed to the change that returned the funds and created the new chain—current Ethereum. But a minority, who believed the blockchain should not be altered due to the hack, remained on the old chain, now known as Ethereum Classic.
Bitcoin Also Had a Hard Fork, Called Bitcoin Cash
What is Bitcoin Cash?
Bitcoin Cash (BCH) is a cryptocurrency that emerged as a hard fork of Bitcoin on August 1, 2017. The development of Bitcoin Cash aimed to increase the network’s throughput by expanding the block size from 1 MB to 8 MB, allowing for faster transaction processing. Unlike Bitcoin, which utilizes the Segregated Witness (SegWit) upgrade through a soft fork, Bitcoin Cash prefers to update its protocol through hard forks without altering the fundamental economic principles of the original network.
The goal of creating Bitcoin Cash was to restore Bitcoin’s role as a universal means of payment. Over time, transaction fees in Bitcoin Core began to rise, and transaction confirmations could take several hours due to the 1 MB block size limit. Bitcoin Cash offered an alternative that provided faster and cheaper transactions, thus creating a more user-friendly experience.
On November 16, 2018, a split occurred within Bitcoin Cash, triggered by a “hash war.” As a result, the chain split into Bitcoin SV and Bitcoin ABC.
Why is it needed?
Bitcoin Cash is used as an efficient means of exchange and a long-term store of value. With low transaction fees (usually less than 1 cent) and high transaction processing speed, it is suitable for everyday purchases and money transfers, including micropayments like online tips. The ability to execute instant transactions makes it convenient for retail and use in countries with limited access to traditional financial systems.
Additionally, Bitcoin Cash serves as a long-term capital storage asset. The supply limit of 21 million coins and regular halving events make it a deflationary asset, contributing to the preservation and appreciation of value over time.
Does It Have a Chance to Grow in the Next Bull Market (Altcoin Season)?
The chances for Bitcoin Cash to grow in the next bull market for altcoins are quite high. During times of rising interest in cryptocurrencies, investors often turn to projects like Bitcoin Cash, which offers higher throughput and lower fees. These advantages make it appealing to users, especially against the backdrop of increasing popularity for digital payment solutions and micropayments.
Advantages of Bitcoin Cash:
- Low fees
- High transaction speed
- Limited supply
- Deflationary asset
- Support for micropayments
- Inflation resistance
- Direct P2P payments
- Economic freedom
- Support for smart contracts
- Long-term value
Disadvantages of Bitcoin Cash:
- Weak decentralization
- High volatility
- Limited support for smart contracts
- Competition risk with Bitcoin
- Dependency on miners
- Limited infrastructure
- Double spending risk
- Lack of unique features
- Complex regulation
- Potential network vulnerability
Bitcoin Cash Price Forecast
Analysts’ forecasts for Bitcoin Cash (BCH) show optimistic development in the coming years, albeit with some fluctuations. In 2025, a price range from $596 to $967 is expected, suggesting a possible rise close to the $1000 mark under favorable market conditions. By 2025, predictions indicate that BCH could break through the $1257 barrier, reflecting its potential in a bullish market.
In the longer term, for example, by 2030, Bitcoin Cash could reach $4668 if the positive dynamics continue. Predictions indicate that BCH has growth potential due to its focus on fast and affordable transactions, which could attract investors and increase demand. However, the cryptocurrency market remains volatile, and price can be influenced by both internal and external factors, such as technological changes and overall economic conditions.
Thus, Bitcoin Cash may prove to be a promising asset for long-term investors; however, it is important to consider the risks and conduct thorough market analysis before investing.
Conclusion
If you are a proponent of decentralization and the ideal principles of Satoshi Nakamoto, then this coin will always fit in your portfolio. If you want to profit from this coin, it will suit you as well. The project is being actively developed, and it is unlikely to become a scam.
Strengthening your portfolio with Bitcoin Cash is a good idea, but remember the potential risks.
