Introduction To Bitcoin Cash BCH
The most popular cryptocurrency, Bitcoin, has been growing in terms of popularity over the past few years. This has made the time of processing transactions slower and slower – and the cost of each transaction in the network more expensive for the sender. In order to improve the current BTC system, Bitcoin Cash (BCH) was created.
What Is Bitcoin Cash BCH
Bitcoin Cash (BCH) is a cryptocurrency which migrated from the original Bitcoin (BTC) network on August 1, 2017. This process is known as a hard fork for Bitcoin – and was what produced Bitcoin Cash BCH – as a cryptocurrency which aims to take Bitcoin in a completely new direction geared towards faster transaction speeds and lower fees.
Basically, Bitcoin Cash is a cryptocurrency that is:
- Decentralized – This means that the network is spread out across a lot of different computers all over the world.
- Peer-to-peer – People can send Bitcoin Cash from anywhere in the world without any intermediaries like banks.
- Secure – Bitcoin Cash uses a strong encryption to prevent hacking, fraud as well as cyber attacks.
- Open – All of the Bitcoin Cash transactions are logged on a publicly accessible blockchain which can be viewed and verified by anyone.
Is Bitcoin Cash Different From Bitcoin – And How?
Yes, it is.
In fact, Bitcoin Cash (BCH) was created in order to be different from Bitcoin. With many diverging viewpoints within the community, the network needed to be scaled. As more people began using Bitcoin, the network struggled to keep up with the volume of transactions. This is why and how many Bitcoin users struggled waiting for hours and days before seeing their transactions go through.
With many proposals on solving this problem, there was a split between the two groups with opposing viewpoints – ones in favor of increasing the block size in the blockchain and the ones in favor of restructuring the way data was stored in the existing blocks.
The Hard Fork As The Birth Of Bitcoin Cash (BCH)
A group in the Bitcoin community wanted to increase the size of blocks on the Bitcoin blockchain. This group consisted primarily of Bitcoin miners who could not get enough support from the larger Bitcoin community and form a consensus that was needed to move BTC in the right direction. This is how the group split off and “hard-forked” from the original Bitcoin blockchain – and how Bitcoin Cash was formed as a new digital currency.
Even though Bitcoin Cash recognized the same blockchain as Bitcoin up until the time of the fork (August 1, 2017) – after the fork the Bitcoin Cash transactions started to be recorded on a new blockchain which was specific to Bitcoin Cash. All of this was done while Bitcoin continued to maintain the original Bitcoin blockchain.
What Is Different In The Bitcoin Cash Operations?
The biggest difference between Bitcoin and Bitcoin Cash lies in the size of blocks on the blockchain. The increased block size from Bitcoin’s 1MB to 8MB made Bitcoin Cash able to handle and process more transactions in one block. Generally speaking, the idea of BCH was to process larger transaction volumes faster and for lower fees.
Aside from this, the two currencies have a different level of difficulty when being mined. For instance, mining Bitcoin Cash varies depending on how many miners are active on the network. Many miners have migrated over to Bitcoin Cash for this reason – mostly because it allows them to generate larger profits in less time (compared to mining Bitcoin).
Where Can Bitcoin Cash Be Used As Payment?
Right now, there are many cryptocurrency exchanges which have integrated Bitcoin Cash. It is possible that merchants will begin the same as the cryptocurrency continues to grow. What’s good is that Bitcoin Cash was once part of Bitcoin which is why it has a good credibility.
Even though there are not many places and vendors accepting Bitcoin Cash as a means of payment (compared to the ones accepting Bitcoin), the situation is likely to change in the coming years.
How To Get Bitcoin Cash BCH?
There are a couple of ways to get Bitcoin Cash. They include:
- Pre-owned: If you owned Bitcoin before the fork on August 1st 2017, you might already have some Bitcoin Cash. Any Bitcoin holdings prior to the split (unless ones kept on an exchange) can also be claimed as Bitcoin Cash.
- Buy from exchanges: If you don’t have Bitcoin Cash, you can buy it from a registered cryptocurrency exchange. Due to an increase in value and demand, more and more exchanges are opening their doors to this popular cryptocurrency.
- Mine it: You can mine Bitcoin Cash and earn generous amounts of BCH through this process, which is an incentive for many to participate in the network.
Things To Know Before Buying Bitcoin Cash
Cryptocurrencies are volatile, which means that the value of Bitcoin Cash – just like others – will go up and down. Since the release of BCH, it has grown to become one of the most valuable cryptocurrencies in the world. Still, it has also seen major price fluctuations over the past months and years.
The stability of Bitcoin Cash definitely needs to be reviewed if you want to invest in this coin. However, it is worth noting that this is one of the alternative cryptocurrencies (altcoins) which are among the most popular – and a member of the top 10 list (of cryptocurrencies with the biggest market cap).
The Future Of Bitcoin Cash BCH
Things look good for Bitcoin Cash and over the past year, its value has grown. Despite its comparatively short existence, the BCH cryptocurrency has performed well and it is hailed by its supporters as a “new and improved” system which may at some point rival the original Bitcoin.
At the same time, Bitcoin Cash is seen by many as a digital currency which does not have the same level of support as Bitcoin. As both coins progress and implement new solutions, it will be exciting to see the new developments coming in the future.
For more news and updates on Bitcoin Cash BCH, check out our latest altcoin news!