What Is Bitcoin Cash
Bitcoin Cash (BCH) is a cryptocurrency that brings money to the world with the intention of fulfilling the promise of the original Bitcoin whitepaper, where merchants, as well as users, are empowered through low fees and reliable confirmations.
It is an alternative to the most widely traded cryptocurrency ever, Bitcoin (BTC).
Bitcoin Cash modified the code Bitcoin had, where a new software version was released with features that were incompatible with Bitcoin. When it launched, this resulted in a fork, where Bitcoin essentially split into two blockchains, one being Bitcoin (BTC) and the other being Bitcoin Cash (BCH). This means that any user that owned BTC had the opportunity to claim an equal balance of BCH at the time they separated. Since then, BCH has been adding a lot of features, such as increasing the block size limit to 32 MB. It has also implemented some features from other cryptocurrencies, such as enabling users to launch new tokens on the blockchain.
How Does Bitcoin Cash Work
Just like Bitcoin, Bitcoin Cash has a limited supply of 21 million coins. Transactions are quick, and the transaction fees are low, a tenth of a cent in fact. Anyone has the ability to accept Bitcoin Cash payments through a smartphone device or a computer.
It has multiple use cases, and alongside its peer-to-peer payments between users, it can also be used as a means of paying participating merchants for specific goods or services. This can be done online or in-store directly. Now, the low fees also enable microtransactions to occur, and this led to tipping content creators as well as rewarding specific users.
Bitcoin Cash also has the ability to reduce fees, settlement times for remittances, and cross-border trades, as well as other use-cases, including tokens, smart contracts simplification, and private payments.
BCH vs BTC
When you are comparing BCH with BTC, you are essentially comparing their design philosophy, as it is the main way through which they differ.
The developers behind Bitcoin Cash view customer payment as an essential part that will lead to the growth of BTC's value in the short term, as it is far better for online spending and everyday use-cases.
One of the main features which makes it stand out is the fact that the blocks in its blockchain have been increased in size, which in turn allows the blockchain to process more transactions every time a transaction is added. This additional space also enables users to avoid fees used on Bitcoin, for example.
However, Bitcoin Cash users face difficulties when it comes to getting their own copy of the blockchain, as storing the records has a higher cost associated with it.
Bitcoin cash users also have to upgrade the software they run a lot more frequently, as the developers add or change features a lot more quickly, which could lead to a rejection from the network if not done correctly.
In other words, BTC differentiates itself from BTC in the sense that it is a lot swifter when it comes to network upgrades. The result of this was its own split, where Bitcoin Cash actually split into Bitcoin Cash and Bitcoin SV.
Our step-by-step guide on how to Buy Bitcoin Cash will help you get started!
How to Mine BCH
Mining is the process where new Bitcoin Cash transactions are confirmed, and new blocks are added to the Bitcoin Cash blockchains. Miners have to use computing power alongside electricity with the intention of solving cryptographic puzzles, where once they do so, they are able to produce blocks into the network. If their blocks end up being accepted, the miner or pool earns a block reward, which is a BCH token. The BCH token is also a form of currency on the network and has its own price.
The further the price of Bitcoin Cash rises, the more the miners are incentivized to bring a higher hash rate to the increasing competition with the intention of producing blocks and being accepted by the network as a whole. The more miners there are on the network, the higher the network security is.
Bitcoin Cash can also be bought on different cryptocurrency exchanges. However, you need to be aware of the BCH price as well as the circulating supply. The Bitcoin Cash price is volatile, so keep that in mind when considering information about the currency and the marketplace. Investors should be wary about the currency as its price shifts.
The idea here is that the more transactions BCH can handle, the higher its demand will be, and, as such, the higher its price will increase. With an appealing price and a price that is constantly rising, people will want to invest in the currency and sell it at a higher price.
Bitcoin Cash Founders
Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin.
Bitcoin Cash (BCH) launched in 2017 and was created by a group of Bitcoin users who didn't quite agree with the roadmap proposed by the project's developer group, Bitcoin Core. The founders of BTC had this belief that different technical options were a requirement when it came to bringing Bitcoin to a global audience.
BCH has the same founder as BTC, which is a person or a group of people known as Satoshi Nakamoto.
Interestingly, the software that would create Bitcoin Cash is known as Bitcoin ABC, and it was released on August 1, 2017.
Note that Bitcoin Cash is a fork, and the developers are not the only ones responsible for it, as this split required users to commit a lot of power to create the first block on the Bitcoin Cash blockchain.
In November of 2018, Bitcoin Cash even split into two cryptocurrencies, Bitcoin Cash and Bitcoin SV.
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