Invest in Bitcoin Cash (BCH)

What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that is the result of a hard fork of the Bitcoin blockchain. Notably, Bitcoin Cash is by far the most successful Bitcoin hard fork to date. This project entered the market under a cloud of controversy. However, after the smoke cleared, Bitcoin Cash emerged as one of the top ten cryptocurrencies in the world in terms of market capitalization.

Bitcoin Cash is the direct result of the scalability problems found on the Bitcoin blockchain. During 2017 cryptocurrency, these issues took center stage as Bitcoin’s transaction times and fees reached new heights. This increase in fees and delays were the result of excessive network congestion resulting from larger transactions.

Bitcoin’s use and value skyrocketed that year as more investors learned about this digital asset. In addition, a flood of new investors entered the market eager to go digital “Gold rush. “These factors have pushed the Bitcoin network to its maximum capacity.

Put simply, Bitcoin cannot handle the increased usage. It is one thing to satisfy the programming and darknet communities, but it is a completely different story to satisfy the demands of the general public. To perform this task, Bitcoin would have to increase considerably.

More data = more transactions

Bitcoin Cash eliminates these concerns through a larger block size. These larger blocks are capable of holding more transactions per block. This strategy increases the transaction rate per second (tps) of the network as a whole. The goal was to allow Bitcoin Cash to function as a medium for daily transactions, as was the original intention of the Bitcoin Whitepaper for Satoshi Nakamoto.

Larger blocks

While increasing the block size in most blockchains wouldn’t be a big deal, for Bitcoinists, changing the core protocol of the coins is a no-no. For these individuals, known as Bitcoin Core, the 1MB block size plays a vital function in the network they supported.

First, it allows anyone to join the network regardless of their computer. However, with the advent of ASIC mining rigs, this topic is still under discussion today. It also prevents the network from getting bogged down in spam data.

Bigger is better

Bitcoin Cash advocates believed that increasing block size between 8MB and 32MB was the best way to provide daily Bitcoin users with the services they need. These larger blocks allow you to process more transactions per block. In turn, Bitcoin users could avoid fees and delays.

This increase in transactional throughput allowed Bitcoin Cash to negate the need to incorporate the Segregated Witness (SegWit) protocol. SegWit reduces the amount of data sent for each transaction. Today it is part of the main Bitcoin coding.

Features of Bitcoin Cash (BCH)

Bitcoin Cash’s largest block size has done its job. Sharply, Bitcoin Cash is much faster than traditional Bitcoin. Interestingly, during a stress test conducted in September 2018, the platform recorded 25,000 transactions per block. By comparison, the average number of transactions per block for Bitcoin is between 1,000 and 1,500.

Furthermore, it is much cheaper to use Bitcoin Cash. BCH users only pay around $ 0.20 per transaction using the network. These fees are much higher using the Bitcoin blockchain. Furthermore, Bitcoin Cash is easier to mine than its predecessor thanks to the integration of some new protocols.

Bitcoin Cash has a healthy community that is among the most vocal in the market. Although, recently, the coin has had some divisions regarding updates.

History of Bitcoin Cash (BCH)

The history of Bitcoin Cash begins with a philosophical debate on how to handle Bitcoin’s scalability issues. These problems have always been a problem for Bitcoin developers. In 2017, concerns were at the point where something needed to be done. The Bitcoin network had surpassed its technical capabilities.

For example, in 2010, the average block size on the Bitcoin blockchain was less than 100 KB. As of January 2015, the average block size reached around 600,000. This accumulation of unconfirmed transactions wreaked havoc on the network. Specifically, both time and market transaction fees have skyrocketed.

By 2017, there were several cases of fees higher than the actual Bitcoin sent. Transaction times could take days during this congestion. In fact, Bitcoin hasn’t been able to scale to function like Satoshi’s envisioned electronic cash system in this state.

Discussion options

The Bitcoin community was divided on how to handle this problem. Some have proposed increasing the average block size to accommodate more transactions. While others have suggested that the protocol excludes certain parts of the transaction to put more data into the blockchain (BIP 91). Basically, both options had their supporters and opponents.

Advocates of a larger block size, like Roger See, claimed that in its current state, Bitcoin could never function as a medium for everyday transactions. This field claimed that unless Bitcoin could process transactions on par with multinational credit card processing organizations, such as Visa, it would never fulfill its original purpose as a peer-to-peer electronic payment system.

Bitmain weighs

The creation of Bitcoin Cash was almost inevitable after the largest mining pool and hardware maker in the world stepped into the discussion. Bitmain initially opposed SegWit because it denied some of the benefits of their top miners, the AsicBoost miner. As the largest mining pool in the world, Bitmain holds incredible influence in the Bitcoin community.

Bitcoin Cash (BCH) is born

Eventually, no consensus was reached and the community split. As a result, Bitcoin Cash was launched in July 2017. The new coin was the result of a hard fork of the original cryptocurrency blockchain. This hard fork officially occurred a month later, in August 2017.

What are hard forks?

There are two types of blockchain updates, hard and soft forks. The difference between the two is that hard forks require miners to upgrade their nodes to communicate with the network. Sometimes, not all miners want to switch to the new coin protocol. When this occurs, a hard fork occurs and a new coin is born.

Distribution of coins

Bitcoin holders received an equivalent amount of Bitcoin Cash during the launch. Users can request their BCH in participating exchanges. Wisely, the total amount of Bitcoin Cash mirrors that of Bitcoin at 21 million coins.

Mixed feelings

Bitcoin Cash was met with mixed sentiments in the market. The coin came in at a respectable price of $ 900. Thanks to the support of the mining community and Bitmain, the coin was able to gain more traction within the industry. In December 2017, Bitcoin Cash hit an all-time high of $ 4,091.

Inception Hard Fork

In November 2018, Bitcoin Cash experienced a hard fork within a hard fork. The divisions of the community originated from a plan to integrate smart contracts on the blockchain and increased the average block size again. The resulting hard fork created Bitcoin Cash ABC (BCH) and Bitcoin Cash SV (Satoshi Vision). The latter of the two, Bitcoin Cash SV is led by longtime cryptocurrency programmer and Satoshi Nakamoto, Craig Wright said.

Consent

Bitcoin Cash uses a Proof of Work (PoW) consensus mechanism similar to Bitcoin to mine new coins. Both Bitcoin and Bitcoin Cash integrate a difficulty adjustment algorithm (DAA) to keep block times consistent. Originally, both Bitcoin and Bitcoin Cash used the same DAA. However, in August 2017, Bitcoin Cash introduced an addition to the DAA, called the EDA (Emergency Difficulty Adjustment) algorithm. This allows the network to be more responsive.

Bitcoin Cash (BCH) Mining

Mining Bitcoin Cash is as easy as mining Bitcoin. Fortunately, the coin shares the services of Bitmain, the largest cryptocurrency miner in the world. Additionally, the coin recently revised its EDA algorithm. This maneuver made it easier for miners to generate BCH. It is also cheaper to mine BCH.

How to get Bitcoin Cash (BCH)

In the beginning, major exchanges like Coinbase denied Bitcoin Cash entry on their platforms. It was a protest from supporters that it got this coin in almost all major exchanges globally. Today, Bitcoin Cash remains one of the top ten cryptocurrencies in the world.

Where to store Bitcoin Cash (BCH)

There are many ways to securely store your BCH. The simplest and most convenient method is to use a mobile wallet. Mobile wallets are free and allow you to access your BCH whenever you need it. They are easy to use and allow you to send and receive BCH in seconds.

If you are a serious investor or are simply planning to HODL your BCH, a hardware wallet is the right choice. Companies like Ledger manufacture pocket-sized devices that keep your cryptocurrencies securely stored off-line. The only downside is that these wallets can cost around $ 100 +. It’s a small price to pay for all the security you get by using a hardware wallet.

Bitcoin Cash – A story of perseverance

For Bitcoinist in the market, it is easy to dismiss Bitcoin Cash as just a Bitcoin rip off. However, this topic falls apart as you begin to evaluate the changes, updates and community growth that the coin has undergone since its creation. Today, Bitcoin Cash alone represents a staple in the crypto community.