In this article we will analyze and explain what is Bitcoin Cash (BCH), why it was created, and how it differentiates with other cryptocurrencies. At the moment, Bitcoin Cash is one of the most important virtual currencies in the market and attracts several investors.
What is Bitcoin Cash?
Bitcoin Cash is a hard fork of the original Bitcoin network that took place at the beginning of August, 2017. The Bitcoin community was debating about the scalability issues that could arise in Bitcoin, and that were affecting the network. Specifically, Bitcoin Cash proposed to extend the 1-megabyte block size of Bitcoin to 8-megabytes.
The main intention of the 1 MB block size limit to Bitcoin has been decided so as to prevent spam attacks on the network, when Bitcoin was not so used and known. In 2015, the first problems started to appear in the network, sending bitcoins was more expensive and transaction times have been longer.
Bitcoin Cash has decided to increase the block size, allowing more transactions to be registered in each block, and remove Segregated Witness (SegWit), from the code. Segregated Witness allows transactions to be smaller by separating certain parts of the information that they have.
With these improvements, Bitcoin Cash aims to increase the number of transactions processed without congesting the network. The main purpose is to be able to compete with PayPal and Visa, which can handle many more transactions than Bitcoin.
Positive Points of Bitcoin Cash
There are some advantages of the Bitcoin Cash network. For example, miners would have more benefits because more transactions would be included in each block.
With the bigger blocks, worldwide adoption could be a real possibility. Without the possibility to scale, fees and transactions times would kill the Bitcoin network. If there are higher fees, less people will be able to use Bitcoin as a means of payment. Only important and wealthy enterprises would be able to use it.
In addition to it, Bitcoin Cash supporters say that BCH is what Satoshi Nakamoto thought for Bitcoin and tried to create. Bitcoin is not working as expected, and Bitcoin Cash could solve it.
New transaction signatures, with the SigHash type, provide replay protection, improved hardware wallet security, and the elimination of the quadratic hashing problem.
Critics to Bitcoin Cash
The Bitcoin Cash hard fork caused several critics and discussions in the cryptocurrency community. One of the arguments was related to mining activities. With less transaction fees, miners were going to lose the incentive keep their activities, decreasing the overall hashrate of the network.
Additionally, the community is now divided. Some of the developers and efforts are focused on Bitcoin Cash, while others in Bitcoin. And both communities are deeply separated by a big ideological barrier. This is not positive for the health of the cryptocurrency world.
Another important point is related with the centralization. As the network becomes bigger in size, the processing power to mine is also going to increase. That would reduce the amount of smaller miners, and the network would be controlled by those larger mining companies.
Bitcoin is working in a off-chain scaling solution known as Lightning Network, that would allow transactions to be processed almost instantly, and with no fees (or very low fees).
The Bitcoin Cash Fund
The Bitcoin Cash Fund is a group of passionate professionals that is committed to the long-term success of Bitcoin Cash in the crypto environment. The fund started as a chat group in 2017 when a group of individuals was searching for support for a Bitcoin Cash video about the cryptocurrency. As the result was unexpected – a lot of individuals decided to fund it – they created a non-profit organization that aims to promote Bitcoin Cash everywhere in the world.
The main individuals behind the Fund are Ian Descoteaux, Paul Wasensteiner, Haipo Yang, Monica Rea, Aron Levi and George Samuels. The advisors are Jack C. Liu, Roger Ver, Peter Rizun, and Mike Komaransky.
Bitcoin Cash in the Market
At the moment of writing this article, Bitcoin Cash is one of the most important virtual currencies in the market. It is currently the 4th virtual currency by market capitalization ($20 billion dollars), right after Bitcoin ($141 billion dollars), Ethereum ($70 billion dollars), and Ripple ($26 billion dollars).
Each BCH coin can be bought for $1.200 dollars. When it appeared in the market it was traded just under $300 dollars and it reached an all time high of $4000 dollars at the end of December, 2017.
Bitcoin Cash can be bought in many different exchanges in the market, including Coinbase, Bittrex, kraken, Cex.io, Kex, Korbit, BTCBOX, HitBTC, Bithumb, and many others
Bitcoin Cash is a hard fork of Bitcoin that increased its block size to offer a solution to the scalability problem. The community is very divided regarding whether to follow or not this relatively new virtual currency, but it remains as the fourth virtual currency in the market according to its value.
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