What is Bitcoin Cash?
The issue of scalability was always a contentious subject amongst the developers on the Bitcoin network. Various proposals were put forward to address the issue, but there was never consensus amongst the developers. The issue came to a head around June 2017 when the network became so busy that some transactions took days to be confirmed.
A proposal to allow small transactions to be made away from the blockchain was agreed to by most of the developer community. Development on the Bitcoin chain is done according to the consensus of the majority. However, there is nothing to stop a group of developers from creating a new version of the protocol and starting a new chain. This is what happened on 1st August 2017, when Bitcoin Cash came into being. Bitcoin and Bitcoin cash share a common blockchain up until that date, after which there are two completely different chains.
How it Works
When a hard fork occurs, anyone holding the original coin is awarded an equal quantity of the new coin. In that sense, there was no Bitcoin Cash ICO.
In many respects, Bitcoin Cash works the way Bitcoin itself works. Miners solve a mathematical puzzle to earn the right to add a block of transactions to the chain. When they do that, new coins are created which they earn as a reward. Over time, the difficulty of solving the puzzle increases, and the reward for adding each block decreases. This means new coins are created at a decreasing rate over time.
Bitcoin cash differs from Bitcoin in several respects. Block size is much larger, which means more transactions can be included in each block. This also means transaction fees are lower. These two factors make it a better digital currency for small transactions. Bitcoin Cash is not compatible with Bitcoin wallets; however, you can easily find a Bitcoin Cash Wallet to download for desktop or mobile devices. In addition, popular multi-coin wallets like Ledger Nano S and Trezor are also computable with Bitcoin Cash. The most popular currencies to exchange for Bitcoin Cash are € and $.
Prospects and Criticisms
Bitcoin Cash has always been controversial. It has a small but very loyal following and while many thought it would fail it is now worth more than many very highly regarded cryptocurrencies. The biggest criticism is over how centralised it is and the fact that a small group controls most of the hash power (the mining power) and hold a large proportion of the coins.
- Larger block size limit than Bitcoin
- The fact that it is still around, and amongst the top 5 most valuable cryptocurrencies, means Bitcoin Cash it has staying power.
- Faster transaction times and lower fees mean BCC is better suited to everyday transactions.
- The hash power for Bitcoin Cash is highly centralised.
- A small group owns a large proportion of the supply.
- The market is generally more supportive of BTC than BCC.
- May be diluted by other Bitcoin forks with even better features.
Did You Know?
Bitcoin Cash came about because of the first hard fork of the Bitcoin blockchain. Its relative success has inspired numerous other hard forks since then – in fact, there have been over 25 hard forks since August 2017. Most of these have attracted little interest, though Bitcoin Gold, Bitcoin Diamond, and Bitcoin Private do have some supporters. So, should you invest in Bitcoin Cash? In the long term, Bitcoin Cash will succeed if Bitcoin itself fails to scale effectively. So, in the short term, any scaling problems within the Bitcoin network may lead to the Bitcoin Cash price appreciating.
Are There Any Similar Crypto Coins?
Bitcoin Cash is competing with all the other cryptocurrencies that exist as a medium of exchange and a store of value. Some examples of what it can be compared to:
What We Do
While some exchanges were initially reluctant to facilitate trading in Bitcoin Cash, most prominent exchanges now do. These include some of our top-rated brokers and exchanges including eToro, Bittrex, Binance and Coinbase. These brokers will allow you to exchange several fiat currencies including USD and EUR for Bitcoin Cash. So, you can choose a Bitcoin Cash exchange and buy it today.
If you plan to buy Bitcoin Cash coin, you’ll need to keep up to speed with developments on the Bitcoin network. Rather than basing decisions on a long-term Bitcoin Cash forecast, you’ll need to make tactical decisions based on changes in sentiment around the future of the two coins. You will also need to keep up with similar coins designed for high volume transactions like Dash, Monero and Cardano, and the best way to do so is to keep checking besbitcoinexchange.io for news and developments and make sure you add us on social media.