Bitcoin Cash is a cryptocurrency generated in 2017 by forking the Bitcoin Blockchain and changing the block size limit. Amaury Séchet delivered the first Bitcoin Cash software implementation on August 1, 2017. A few high-profile early Bitcoin investors, including Roger Ver, backed the new cryptocurrency, claiming that Bitcoin's one-megabyte block size limit would limit its potential to develop and accrue value as more investors and consumers adopted crypto coins.
Bitcoin Cash launched a trend of forking the Bitcoin Blockchain to create other cryptocurrencies. Bitcoin Cash is the highest Bitcoin fork in terms of market capitalization and active users. Bitcoin Cash is an extraction from Bitcoin based on the same technology, used the same way. However, it is a distinct variant from the world's first and most well-known cryptocurrency.
What is Bitcoin Cash?
Bitcoin Cash is a type of cryptocurrency that is a Bitcoin Splinter. It is an Altcoin created in 2017. Bitcoin Cash, aimed to have a larger block size than Bitcoin, permits more transactions to be stored in a distinct block. Craig Wright, who claims to be the actual Nakamoto, is the leader of Bitcoin Cash SV.
The rise of Bitcoin Cash
Bitcoin Cash got launched in August 2017 amid a war of words and staking of positions by miners and other stakeholders in the cryptocurrency community. Every Bitcoin holder was given an equal quantity of Bitcoin Cash, thereby expanding the number of coins in circulation. As a result, Bitcoin Cash made its debut on cryptocurrency markets at a whopping $900. Bitcoin Cash got shunned by major cryptocurrency exchanges like Coinbase and itBit, which did not list it on their platforms. However, Bitmain, the world's largest Bitcoin mining platform, provided crucial help. When Bitcoin Cash got launched, it ensured a supply of coins for trade on cryptocurrency exchanges. As a result, Bitcoin Cash's price soared to $4,091 in December 2017, at the height of the cryptocurrency craze. Coincidentally, Bitcoin Cash had a fork a little over a year later, for the same reason it broke from Bitcoin. Bitcoin Cash was, however, divided into Bitcoin Cash ABC and Bitcoin Cash SV in November 2018 (Satoshi Vision). This time, the debate stemmed from planned protocol changes that would allow smart contracts to be used on the Bitcoin Blockchain while also increasing the average block size. Both cryptocurrencies (Bitcoin Cash ABC & SV) have achieved reasonable prices on crypto exchanges since their inception.
How does Bitcoin Cash Work?
Bitcoin Cash (BCH), designed for spending rather than holding, is speedier than the original Bitcoin (BTC). To process transactions more quickly, Bitcoin Cash makes use of bigger block size (4-8 times larger than BTC, depending on the adoption of Segregated Witness). These transactions are very speedy that you could use BCH to make a quick retail purchase (like a pack of sweets). Still, if you're buying a car or a house, you will be better off using a slower, more secure cryptocurrency like BTC.
As a result, BCH and BTC serve different purposes. Not all cryptocurrencies are supposed to operate as a store of value. Not all cryptocurrencies need to process data fast to work like a credit card transaction. Using separate tools for different jobs makes logical, just as using a credit card for restaurant meals and a bank transfer for home purchases makes sense. In the end, BCH is faster and has cheaper processing fees than BTC. However, it still utilizes less frequently because most cryptocurrency payments are still in their infancy. However, many people feel increasing awareness, together with related technological advances and developments, will help BCH become a leader in Bitcoin payments over time.
Difference between Bitcoin and Bitcoin Cash
1. The transaction fees of Bitcoin Cash are lower compared to that of Bitcoin.
2. Bitcoin Cash is faster in transferring data. So, you don't have to wait for a Bitcoin transaction to confirm for 10 minutes.
3. Blockchain has much fewer trading pairs than Bitcoin, which makes it less tradable than Bitcoin.
4. Bitcoin Cash has a higher per-second transaction rate, which means that more people can use Bitcoin Cash at the same period as Bitcoin.
5. Consumer confidence in Bitcoin Cash is not as high as it is in Bitcoin.
How to Buy and Use Bitcoin Cash (BCH)
Most of the crypto exchanges list BCH as an asset you can buy, sell and trade. Generally, signing up on a crypto exchange platform is a bit easy, even though doing so anonymously might not be an option. Most exchanges will require to Know Your Customer (KYC) and Anti-Money laundering verification in the form of a photo ID card, and in some cases, address and income verification.
Basically, because of the National ban in Nigeria on cryptocurrency, you can still buy cryptocurrency through other platforms like PayPal and equally Binance P2P system and other Exchange systems.
Conclusion (What is the future of Bitcoin Cash?)
Bitcoin Cash has proved to be a great type of investment during the last two years, placing 5th in terms of market capitalization among all cryptocurrencies, according to CoinMarketGap. BCH is, however, expected to gain in value as a successful Bitcoin fork.
The future of Bitcoin Cash is intriguing since the coin got designed to be the next iteration of Bitcoin to address the currency's faults. Bitcoin has grown in popularity as an asset looking at the way it has evolved. Furthermore, there is a rising demand for cryptocurrencies to behave more like functional currencies. Bitcoin Cash has the same name and history as Bitcoin and can also be seen as its successor after it forked.
Bitcoin Cash presents a tremendous opportunity for investors and traders to profit from its volatile nature and potential to become more prominent in the discussion as time goes on.
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