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The reason for a hard fork is typically ideological whereby the developers have differing solutions to solve the challenges of the cryptocurrency. For Bitcoin Cash, the issue was how to scale Bitcoin transactions to accommodate the growing volume.

There can be multiple hard forks for a cryptocurrency with each hard fork leading to the creation of a new cryptocurrency. Bitcoin itself has had several hard forks with Bitcoin Cash and Bitcoin Gold being more prominent and widely used variants. Other variants such as Bitcoin XT, Bitcoin Classic or Bitcoin Unlimited have largely fallen out of favour.

In 2020, Bitcoin Cash’s price rose from US$203 to US$343 and is currently around US$428. BCH is currently ranked 9th by CoinMarketCap.

Price on Jan 1, 2020: US$203

Price on Dec 31, 2020: US$343

Performance in 2020: 170 per cent.

Take caution because you can lose all your money in cryptocurrencies
The eye-popping gains may be alluring but cryptocurrencies are still nascent and some say speculative in nature. In the previous ICO rush of 2017/2018, many cryptocurrency traders/ investors lost all their capital when the cryptocurrencies they bought into crashed (to zero value for some).

While some have survived or languished, there is no certainty that the cryptocurrency you bought today will be the star tomorrow.

For instance, Ripple or XRP, a prominent cryptocurrency that has been 3rd ranked by market capitalisation lost over 40per cent of its value because of an SEC lawsuit.

Not only has its value evaporated overnight, the delisting of XRP from major exchanges means that if you are a holder of the tokens, but you will also be stuck in a situation where you have problems moving your tokens or liquating them.

For every cryptocurrency that has risen to the top, there are many more that have failed. Even a top ranked cryptocurrency can face the threat of failure. So take caution before you invest in cryptocurrencies and don’t lose more than you can afford

269 viewsVK @tamilbtc, 05:44