Bitcoin Cash is an electronic cash system peer-to-peer. It is an unauthorized, decentralized cryptocurrency that does not require trusted third parties or a central bank.
The Bitcoin project and its community divided into two in 2017. Perhaps by their corresponding ticker symbols, BTC and BCH, the least contentious way to refer to each side is merely. Bitcoin Cash is generally depicted by the BCH ticker symbol and is regarded as a peer-to-peer digital cash by its followers as the lawful continuation of the Bitcoin project.
Bitcoin Cash Purpose
Bitcoin Cash is a fork of the Bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow and scale. Block size limit is set to 8MB as part of a massive on-chain scaling approach. It offers low fees and reliable confirmations. While BCH and BTC share many similarities, they’re also different. Indeed, if when answering the question of what Bitcoin Cash is about, we have to look at where it came from and why.
Despite being the most valuable cryptocurrency, some Bitcoin developers were unhappy with the state of the project. With other blockchains such as Litecoin (LTC) able to process transactions cheaper and more efficiently, many thought that a change was necessary.
In 2017, a hard fork was discussed. All blockchains have the ability to be forked, which basically means part of the original code is changed in some way. If a blockchain forks, a section is “removed” from the original chain and a new one starts from that point. This is what happened with Bitcoin in August 2017.
After developers found a way to increase the size of a block (i.e., the amount of transactions a block can hold), a fork was agreed. Those in the community who thought a new system was necessary moved over to Bitcoin Cash, while those loyal to the original system stayed with Bitcoin. The end result was a new digital token that was based on Bitcoin but had some important differences.
Pros of Bitcoin Cash
There are many reasons to invest in Bitcoin Cash and most of them arise from its multiple merits.
1. High Efficiency of Bitcoin Cash
Unlike BTC, which limits the maximum block size to 1MB, BCH has gone for an 8 MB block size. Naturally, having a larger block makes sure transactions get validated and processed much more quickly. The overall scalability of the network increases and the fees of the transactions fall, creating an absolutely win-win situation.
2. Safe Against Possible Replays and Wipeouts:
Now that the BCH hash wars are raging in the crypto world, it has been divided into several camps within the BCH community. Now even if the coin does split, the users will not be inconvenienced as these Bitcoin fork was designed to have a great safety mechanism against replays or wipeouts.
3. Listed on Major Cryptocurrency Exchanges:
Bitcoin Cash is listed on almost all of the top cryptocurrency exchanges and this ensures a high degree of ease and convenience in buying and selling this crypto coin. This drives adoption and increases the investment-potential of this fork of the pioneering cryptocurrency Bitcoin.
Cons of Bitcoin Cash
1. Investor Faith in BCH is Low:
Because of increased concerns about centralisation in BCH and because the branding of this coin has been unable to establish the definite distinction between itself and Bitcoin, the trust of investors in this cryptocurrency often tends to be on the lower side of the spectrum.
2. Low Adoption of Bitcoin Cash:
A major issue that is plaguing Bitcoin Cash is the lack of high rates of adoption. No matter how visible backer Roger Ver is or how efficient the blockchain network itself is, the cryptocurrency will stagnate after a point if it is not utilized across various use cases. High adoption is essential to drive the growth of any cryptocurrency and the lack of that is troubling BCH for a while now. Ripple is frequently used as a cross-border payment protocol and Bitcoin enjoys acceptability from a substantial number of vendors. A quality like one of these is missing in Bitcoin Cash, as it does not enjoy any degree of mainstream adoption.
Why use Money for Bitcoin Cash (BTC)?
- You can send money to anybody, anywhere in the world, 24 hours a day, 365 days a year with Bitcoin Cash. The network is always on like the Internet itself. No transaction is either too large or too tiny. And you never need authorization or approval from anybody.
- The seizure of assets from account holders (“bail-ins”) in Cyprus and almost in Greece has shown that bank deposits are only as secure as political rulers decide. Banks can create errors, keep funds, freeze accounts, and otherwise stop you from accessing your own cash, even under the best of circumstances. Banks can also decide without warning to block your operations, charge you charges, or close your account. This provides you complete, sovereign control over your funds from anywhere in the globe.
- The protocol guarantees that more than 21 million coins will never exist. Governments are constantly printing cash, inflating supply endlessly and devaluing the savings of everyone. It has a set supply and is therefore a sound money supply.
- It also provides more privacy and anonymity than traditional payment systems, such as bank transfers and credit card payments, as knowing who controls the address is usually difficult.
- BCH provides different privacy levels depending on how it is used. Before using BCH for privacy reasons, it is essential to educate yourself carefully.
- Many merchants BCH because it eliminates credit card charges and helps to increase the acceptance of this new payment system.
- BCH is an open network without permission. It empowers you to participate without interference with your fellow human beings. It’s decentralized, non-aggressive and voluntary. Old energy structures will erode as utilization increases as new concepts flourish. It may assist to initiate the world’s largest peaceful revolution ever known.
What Is The Differences Between Bitcoin Cash and Bitcoin?
Both BTC and BCH aim to be a worldwide accepted decentralised currency, but there are some important technical differences.
How can I buy Bitcoin Cash?
There are two ways to get BCH: buy it or mine it. If you’re technically minded, mining cryptos is a great way to get Bitcoin Cash for free (it’s not 100% free as mining software costs money). Although mining BCH isn’t overly complex, it takes time and is beyond the skillset of most casual investors.
Therefore, the best way to get BCH is to use an exchange. Because it’s one of the leading cryptos on the market, you can buy BCH via any of the leading online exchanges. Regardless of whether you want to buy it with another digital coin via a crypto-to-crypto exchange, including Maishince Cryptocurrency Exchange or make fiat transactions, all the options are there.
This article is from CoinMarketCap