What is Bitcoin Cash?
Bitcoin Cash was motivated by the desire to have improved crypto assets and other cryptocurrencies serve their main purpose of actual payments, and it can be said that Bitcoin Cash was literally derived from Bitcoin.
A group of developers wanted to change an aspect of the current crypto, so they could fork or separate from the blockchain on which the original currency lives. That is, forking the main code of an existing cryptocurrency, such as Bitcoin, and then adding to it or changing it slightly so that it becomes its own separate entity.
But although Bitcoin was developed as an electronic system for cash payments, it has suffered many of the same fluctuations that hinder Bitcoin's potential as a real currency. Volatility is why you should be especially careful when using any of the currencies to make payments (in fact, we recommend not doing so and resorting to stablecoins).
To clarify further: Imagine that you pay for a coffee worth $5 in any cryptocurrency, and tomorrow the same amount of cryptocurrency is worth $20. This volatility may result in a loss for you. Additionally, while you do not need to report cryptocurrency purchases to the IRS, you do need to report when trading cryptocurrencies for goods and services.
