What is Bitcoin Cash (BCH)? In simple terms, it’s an online currency formed out of a dispute between Bitcoin (BTC) developers. Now, that doesn’t mean it’s a poor imitation of the original cryptocurrency. In fact, when you really ask the question “what is Bitcoin Cash about”, you’ll see why it’s a strong crypto in its own right.
Perhaps one of its greatest strengths is that it’s universal. Unlike many modern altcoins that focus on one particular market, BCH is for everyone. Therefore, if you’re interested in how to get Bitcoin Cash and why it might be a positive investment, the following guide is for you.
However, before we continue answering what Bitcoin Cash is, here are some key points to keep in mind:
- BCH was formed out of a hard fork on the original Bitcoin blockchain
- Active since August 1, 2017
- Larger block sizes mean BCH can process more transactions per minute than BTC
- The maximum number of BCH tokens is 21,000,000
What is Bitcoin Cash?
BCH is an offshoot of Bitcoin. In general terms, Bitcoin Cash performs a similar function and has the same overall goals as its predecessor. To put it another way, BCH is designed to be a digital decentralised currency that’s not constrained by governments or geographical borders.
What is its purpose?
While BCH and BTC share many similarities, they’re also different. Indeed, if when answering the question of what Bitcoin Cash is about, we have to look at where it came from and why.
Despite being the most valuable cryptocurrency, some Bitcoin developers were unhappy with the state of the project. With other blockchains such as Litecoin (LTC) able to process transactions cheaper and more efficiently, many thought that a change was necessary.
In 2017, a hard fork was discussed. All blockchains have the ability to be forked, which basically means part of the original code is changed in some way. If a blockchain forks, a section is “removed” from the original chain and a new one starts from that point. This is what happened with Bitcoin in August 2017.
After developers found a way to increase the size of a block (i.e., the amount of transactions a block can hold), a fork was agreed. Those in the community who thought a new system was necessary moved over to Bitcoin Cash, while those loyal to the original system stayed with Bitcoin. The end result was a new digital token that was based on Bitcoin but had some important differences.
The team behind Bitcoin Cash
In practice, no one person is behind Bitcoin Cash. The decision to implement a hard fork on the BTC blockchain was a community decision taken by those working on the project.
How does Bitcoin Cash work?
Before we look at how to get Bitcoin Cash, it’s important to look at how it works as a cryptocurrency and, in turn, an investment opportunity. Indeed, to understand what Bitcoin Cash is, you need to understand how Bitcoin Cash works.
In reality, BCH tokens are a form of digital currency. Thanks to decentralised technology, cryptography and proof of work protocols, a network of miners can process transactions without a single point of authority. This system is identical to Bitcoin. However, the main difference is that the blocks can handle more data (transactions) which, in turn, mean it’s easier to process payments.
The end result is that, in some people’s minds, BCH is more effective as an online currency. In other words, it’s easier to send, receive and spend BCH tokens than BTC tokens. That makes it a better option for those wanting to pay for goods and services using cryptos.
From an investment perspective, that’s important. As the world becomes familiar with digital currencies, more people will want to use it. That makes it an interesting alternative for those who’d previously thought about buying Bitcoin.
How does Bitcoin Cash compare to Bitcoin?
As we’ve said in our explanation of how Bitcoin Cash works, the fundamental processes are the same as Bitcoin. However, the main difference is the size of a block and the speed at which transactions take place.
How can you get Bitcoin Cash?
Now that you should know what Bitcoin Cash is about, let’s look at how to get Bitcoin Cash.
How can I buy Bitcoin Cash?
There are two ways to get BCH: buy it or mine it. If you’re technically minded, mining cryptos is a great way to get Bitcoin Cash for free (it’s not 100% free as mining software costs money). Although mining BCH isn’t overly complex, it takes time and is beyond the skillset of most casual investors.
Therefore, the best way to get Bitcoin Cash is to use an exchange. Because it’s one of the leading cryptos on the market, you can buy BCH via any of the leading online exchanges. Regardless of whether you want to buy it with another digital coin via a crypto-to-crypto exchange or make fiat transactions, all the options are there.
How to store Bitcoin Cash
The best way to store BCH tokens is via an online or offline wallet. Because this coin is linked to Bitcoin, you can use all the same crypto wallets for BCH as you would BTC. Some of the leading options are:
Alternatively, you can trade Bitcoin Cash CFDs (contracts for difference) via eToro Exchange. If you do that, you won’t own the actual tokens and, therefore, won’t need a wallet. You will, however, be able to make money based on the price fluctuations of BCH.
Bitcoin Cash price, market cap & supply
Other than being more efficient than Bitcoin, the main advantage BCH has over its peer right now is its price. Unlike its older brother, Bitcoin Cash doesn’t cost thousands. Although it’s far from the cheapest crypto, you could pick up a single BCH token for around $300 in April 2019. When you combine this with a supply cap of 21 million coins, there’s a lot of potential to make a profit when you buy Bitcoin Cash.
Bitcoin Cash advantages & disadvantages
Advantages of Bitcoin Cash
- Based on well-established technology
- More efficient than Bitcoin
- Cheaper than BTC
- Can be used by consumers
Disadvantages of Bitcoin Cash
- Still in the shadows of Bitcoin
- Competing with other Bitcoin forks
Should you invest in Bitcoin Cash or not?
If you’re a fan of Bitcoin then you’ll love Bitcoin Cash. Essentially the same but better in some respects, BCH has all the makings of a world-class cryptocurrency. When you combine that with fairly affordable prices and its potential in the ecommerce space, it’s certainly a crypto worth considering.
FAQ – Frequently Asked Questions about Bitcoin Cash
What is Bitcoin Cash?
Bitcoin Cash is an offshoot of Bitcoin that’s designed to be more efficient.
How can I buy Bitcoin Cash?
All the top cryptocurrency exchanges currently offer BCH trading options.
How much does Bitcoin Cash cost?
The price of BCH is always changing. In this guide, we can only cover what Bitcoin Cash is about and how Bitcoin Cash works.
Can I get Bitcoin Cash with a fiat currency?
Yes. Many major platforms give you the option to buy BCH fiats such as EUR, GBP and USD.
Will I make money if I buy Bitcoin Cash?
As a general rule, all crypto invests carry some degree of risk. However, this is a well-established project that has a lot of positive attributes.
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