Connect with us

Learn

What is Bitcoin Cash (BCH) Cryptocurrency?

Published

on

What is Bitcoin Cash (BCH) Cryptocurrency?

A look into Bitcoin Cash. What is BCH?

Bitcoin Cash is known as an offshoot of Bitcoin. It is a standalone digital currency that was created in August 2017. Even though it shares many similarities with Bitcoin in many different ways, its operating set of rules are unique to it and it also utilizes its own blockchain.

BCH all-time price movements. Source: Coinmarketcap

What Differentiates Bitcoin Cash From Other Cryptocurrencies?

Bitcoin Cash possesses several advantages. Here are some of them:

  1. It allows for two million daily transactions 
  2. Bigger blocks eliminate the need for a scaling tool
  3. You will send & receive the amount of money that you get immediately
  4. Bitcoin Cash has customizable & cheap transactions
  5. Bitcoin Cash has cheaper transfer fees 

Let’s take a look at these advantages one by one below:

1. It allows for two million daily transactions 

Bitcoin Cash is able to process more transactions per block, by increasing the size of blocks to between 8 MB and 32 MB. The average number of Bitcoin transactions per block was between 1,000 and 1,500 at the time when Bitcoin Cash was proposed. During a stress test done in September of 2018, the number surged up to 25,000 transactions per block on Bitcoin Cash’s blockchain.

2. Bigger blocks eliminate the need for a scaling tool

Any process, software, network, or organization’s ability to accommodate increasing transaction volume on a blockchain is known as Scalability.

For the major part, BCH has kept its promises as it provides traders with fast transactions and low fees, thereby the degree of scalability that BCH provides at this time is something that even Bitcoin itself struggles with. Bitcoin Cash’s market performance is also considered a huge success as currently by market cap it is the 4th largest coin.

3. You will send & receive the amount of money that you get immediately 

Unlike the other merchants, Bitcoin Cash makes it possible for you to experience no waiting time anymore as the Bitcoin Cash block (in the blockchain) is eight times bigger than that of Bitcoin which makes it possible for BCH to be cheaper, faster and to have greater scalability than Bitcoin. This means that its blockchain can host many more people to process their transactions at any given time, and because of this, Bitcoin cash is quickly rising to become way more adopted daily.

As you can see, there’s an abundance of reasons as to why you should invest in Bitcoin Cash and most of them are justified by its incredible value and merits.

4. Bitcoin Cash has customizable & cheap transactions

BCH possesses Emergency Difficulty Adjustment (EDA), as Its blockchain is both secure & immutable. Nowadays in the crypto world, Bitcoin Cash hash wars are becoming more common as there are several groups currently operating within the BCH community.

As Bitcoin’s fork was designed with an incredible safety mechanism in mind against wipeouts or replays, the users will not be inconvenienced if the coin does split.

We can find Bitcoin Cash on almost every top cryptocurrency exchange and this means that buying & selling this crypto coin will be met with a high degree of convenience and ease. This eases the way for adoption and also the investment potential of this cryptocurrency is increased. Bitcoin Cash is based on a technology that is highly efficient and established and consumers can use it freely as its efficiency surpasses that of Bitcoin.

5. Bitcoin Cash has cheaper transaction fees

With Bitcoin Cash transactions cost around $0.20, so using it to make transactions will enable you to save more money than using Bitcoin, and Bitcoin Cash transfer times are much faster. Fortunately, now waiting for 10 minutes just to verify a Bitcoin transaction is not needed, BCH handles a much larger number of transactions per second, making it possible for more people to use BCH at the same time, in contrast to the possibility’s limitation with BTC.

Bitcoin Cash is still working hard and striving to capture and secure its own spotlight in the crypto world, and it is speculated by many that Bitcoin Cash might be able to do damage to Bitcoin’s market share by taking a huge chunk of it, culminating with becoming the new dominant crypto. The scaling issues faced by Bitcoin are constantly being addressed by Bitcoin Cash, so, the ability of usage together with ease & lower fees, results in many more people jumping on the train.

You might be interested in buying Bitcoin Cash if…

  • You’re able to pay the full price upfront
  • You want to fully own the cryptocurrency
  • You don’t mind paying additional fees when depositing or withdrawing
  • You’re  able to wait for an exchange account before buying or selling crypto 
  • You’re okay with paying capital gains tax on your profits
  • You want to gain direct exposure to one underlying exchange per account
  • You don’t have an issue with introductory limits or maximum deposits

You might be interested in trading Bitcoin Cash if…

  • You want to only put up a small part of the price upfront
  • You want to be able to speculate on the cryptocurrency’s price changes 
  • You don’t want to pay additional fees for deposits or withdrawals 
  • You want to take advantage of the tax benefits of trading CFD or spread betting
  • You want to gain exposure to multiple exchanges from the same account
  • You want to immediately start trading 
  • You don’t want to have to deal with a maximum deposit limit

How Did Bitcoin Cash Become Popular?

Bitcoin miners have encountered problems in the scaling of Bitcoin for many years, and it was brought to a head because of its 2017 rise in popularity. People who were trading Bitcoin at the time expressed frustration with the fact that they were facing long approval times that were only increasing, and if they wanted to make this process faster, they were required to pay additional fees.

Within the Bitcoin community, there was ongoing disagreement on the method of solving these issues as some miners were considering implementing a scaling tool called SegWit2x, others were in favor of expanding the block size, as they believed this method clashed with the spirit of the cryptocurrency. This feud ultimately resulted in a radical change to the protocol of the blockchain otherwise called a “hard fork’’, which made it possible for one mining group to be able to implement one set of changes to the existing bitcoin, but completely new rules altogether were created by the other group for its offshoot, called ‘bitcoin cash’. 

Takeaways

  • Bitcoin Cash is known as an offshoot of bitcoin. It is a standalone digital currency that was created in August 2017.
  • Bitcoin Cash’s operating set of rules are unique to it and it also utilizes its own blockchain.
  • Bitcoin miners have encountered problems in the scaling of Bitcoin for many years, and it was brought to a head because of its 2017 rise in popularity.
  • Bitcoin Cash is able to process more transactions per block, by increasing the size of blocks to between 8 MB and 32 MB. 
  • For the major part, BCH has kept its promises as it provides traders with fast transactions and low fees, thereby the degree of scalability that BCH provides at this time is something that even Bitcoin itself struggles with.
  • Bitcoin Cash’s market performance is also considered a huge success as currently by market cap it is the 4th largest coin.
  • Unlike the other merchants, Bitcoin Cash makes it possible for you to experience no waiting time anymore as The Bitcoin Cash block (in the blockchain) is eight times bigger than that of Bitcoin.
  • Its blockchain can host many more people to process their transactions at any given time, and because of this, Bitcoin cash is quickly rising to become way more adopted daily.
  • BCH possesses Emergency Difficulty Adjustment (EDA), as its blockchain is both secure & immutable. Nowadays in the crypto world, Bitcoin Cash hash wars are becoming more common as there are several groups currently operating within the BCH community.

 

Editor in Chief. Feel free to contact me if you need help with your content.

Click to comment

Leave a Reply

Trending