Bitcoin Cash: A Beginners Guide To BCH Cryptocurrency
Bitcoin Cash: A beginner's guide to BCH Cryptocurrency; So, Bitcoin Cash (BCH) is a proof-of-work blockchain network, a faster and cheaper
Bitcoin Cash: A beginner’s guide to BCH Cryptocurrency; So, Bitcoin Cash (BCH) is a proof-of-work blockchain network, a faster and cheaper cryptocurrency to use than Bitcoin (BTC). The asset was created through a hard fork of the Bitcoin blockchain network and has since developed its community. Like its predecessor, it is accepted at specific merchants, can be purchased through PayPal, and represents another form of value transaction.
Bitcoin Cash: A Beginners Guide To BCH Cryptocurrency
BCH was supposed to solve many of Bitcoin’s data problems – but this solution creates a long Bitcoin data solution in the community. While the two can easily coexist, many argue over what the trump card of the future will be.
Bitcoin Cash Guide: The history of Bitcoin Cash
The first Bitcoin block, the genesis block, was officially mined on January 3, 2009. Since then, the asset has exploded into popular culture. However, Bitcoin – the world’s first cryptocurrency – still suffers from scalability issues and long transaction times. So, this is where Bitcoin comes into play.
The Bitcoin Cash idea came about in 2017 as an idea for Bitcoin transaction speed issues. So, it is a hard fork of the Bitcoin blockchain, which means that the network “splits” in two on a given block – in this case, block 478,558. This one contains a fundamental protocol change that all invalid update blocks for the new one to continue using.
It’s essentially a massive software upgrade whereby a previous network goes in a separate direction from the new one. In this case, that previous network is Bitcoin, while the fork has forged its future.
Several miners and developers booked
Several miners and developers booked it on the Bitcoin network, hoping to get rid of their offer. After all, assume that Bitcoin can be used for digital transactions, not as a store of value. How can Bitcoin appeal to the mainstream if it transacts in minutes or even hours? And that’s not to mention the high transaction fees.
However, those who took a stand against the hard fork did so for various reasons. For example, Bitcoin Cash has larger blocks, which involves a more complex mining process that can ruin miners without much computing power. This can centralize the most potent miners, who can afford like among the most potent miners.
Then there is the bifurcation process. Those who held Bitcoin at the fork also received the same amount of Bitcoin. This is a common occurrence with complex, but it was an act that some claim was a “get-rich-quick” scheme.
Fighting this statement is BCH proponent Roger Ver. Ver is a fan of cryptocurrencies, and an early Bitcoin investor, among other futuristic concepts. In 211, his company MemoryDealers.com became one of the first sites to accept payment, and so he organized meetings and conferences on the technology.
Ver has also invested millions in various cryptocurrency projects
And is a huge supporter of Bitcoin Cash and its upgrades to Bitcoin technology. He claims that it is more “usable” than Bitcoin due to the increased size of the transaction.
Interestingly, Bitcoin Cash ended up having its forks: Bitcoin Cash ABC (BCHA) and Bitcoin SV (BSV). The former is similar to the original Bitcoin Cash, with only differences. It reinvests 8% of each reward in a block to innovate the network as a salary for open source developers. Bitcoin Cash only takes donations, so in some ways, Bitcoin Cash ABC is more developer-centric.
Bitcoin SV, also known as Bitcoin Satoshi Vision, has other differences. The nickname “Satoshi Vision” is a throwback to the original Bitcoin white paper, which did not require layer off-chain solutions such as the Lightning Network. Bitcoin SV’s focus is still on ensuring stability, increasing the two Bitcoin Cash blocks, and proposing a significant jump to 18 megabytes. And though there shouldn’t be a limit, it made billions of transactions. The community can see what a bloc is, the network; and what was not perceived in eventual size by voting for a partnership.
Leading the BSV driving scientist is scientist Craig Wright, who also claims the alias Satoshi Nakamoto who founded Bitcoin. Some cryptocurrency communities have questioned its value; the Bitcoin Cash network has reached several notable milestones. For example, it hit over 9,000 transactions per second and even fit a purported 16.4 million transactions into a block in early 2021 on the platform’s scaling testnet.
Bitcoin Cash Guide: How does Bitcoin Cash work?
At the technical level, Bitcoin Cash works like Bitcoin. For example, BCH cryptocurrency and Bitcoin have a hard cap of 21 million assets, use nodes to validate transactions, and use PoW consensus algorithms. PoW means the miner’s electricity validates the computer’s trade and is rewarded for their contributions to BCH.
However, BCH works faster and has lower transaction fees than its predecessor due to the larger block size. Therefore, it is more suitable for smaller transactions, such as buying a cup of coffee with cryptocurrency.
Otherwise, Bitcoin Cash supports smart contracts and apps like CashShuffle and CashFusion.
BCH holders using specific wallets can enjoy CashShuffle – a currency mixing protocol that shuffles your Bitcoin Cash with other holders before trading. So, considering Bitcoin Cash is a public ledger, your transactions are private and much harder to track.
However, mixing currencies is not always reliable. So, it requires users to trust a third-party service, which is somewhat ironic considering the encryption must be standalone or pseudonymous. In addition, mixing can cost a fee, which is not ideal for those who trade frequently. Finally, several jurisdictions have targeted cryptocurrency mixers, claiming that funds entering these platforms are often obtained through illegal activities.
CashFusion, instead of mixing transactions with others, puts your BCH in a single significant transaction filled with other CashFusion users. It then sends that BCH back to your wallet – except your transaction has been mixed and matched with so many different trades that (ideally) no one can trace a path to your holdings.
These are two general applications in the Bitcoin Cash ecosystem, although they are just the tip of the iceberg. BCH has inspired dozens of protocols and other projects to expand the technology and make it more accessible to everyone.
Bitcoin Cash Guide: What is Bitcoin vs. Bitcoin Cash?
So what’s the difference between Bitcoin and Bitcoin Cash? Therefore, Bitcoin Cash can support 25,000 transactions per block compared to 1,0001,500 Bitcoin per block. From 1MB to 8MB, this increase in block size was enough to build a following. This resulted in BCH being one of the top 20 cryptocurrencies and one of the most popular Bitcoin forks. Since then, the BCH cryptocurrency has expanded to a block size of 32 MB.
Therefore, it is essential to note that Bitcoin was working on fixing these issues at the time of the fork. Segregated Witness, or SegWit, was an upcoming update at Bitcoin Cash’s inception intended to shift transactions to off-chain solutions to speed up transaction processing. Unfortunately, this solution was unsatisfactory for many. Hence the Bitcoin Cash hard fork took place.
BCH launched at around $240 per coin and has increased considerably. Its price didn’t even come close to Bitcoin’s peaks, but considering BCH is supposed to be a form of payment, this overall lack of value could work in your favor. Bitcoin’s higher price, however, makes it more of a store of value.
It’s worth noting that larger block sizes
It’s worth noting that larger block sizes and faster validation tend to suit companies more. For example, a restaurant can easily manage lower-priced Bitcoin Cash transactions, something Bitcoin struggles with today. This solution also lends itself to tipping online creators or making donations. These more minor use cases make it easy to see why some prefer Bitcoin Cash to the world’s first cryptocurrency, Bitcoin.
On the one hand, the name can be very confusing for new investors. And should have taken this element into account during the hard fork. So, Bitcoin Cash may seem like a project copying Bitcoin to new users. But, on the other hand, it cannot be very clear for some who still don’t know the differences between Bitcoin and Bitcoin Cash.
Also, BCH is much cheaper than Bitcoin and not as prominent in its overall dominance of the cryptocurrency market, which can provide less of an incentive to mine on its network. Otherwise, the asset does not have as many trading pairs as Bitcoin as BTC can use on all exchanges; and as a trading pair for hundreds, if not thousands, of cryptocurrencies. It uses BCH primarily to replace money, and as such it serves a different use.
One might ask: does the price of BCH depend on Bitcoin? Although the two are not directly linked, if the Bitcoin price is going up, BCH will usually follow. There are several reasons for this. First, large lenders may want to diversify their portfolio as the market grows, and Bitcoin Cash is a natural choice as one of the leading cryptocurrencies.
Bitcoin Cash Guide: How to Buy and Use Bitcoin Cash
Many popular exchanges list BCH as an asset that you can buy, sell and trade. In general, registering for the market is relatively easy. However, doing this anonymously may not be an option, as most large companies require to know your customer verification and anti-money laundering in the form of a photo ID. In some cases, address and income verification.
Otherwise, the asset is available at some cryptocurrency ATMs. If you decide to go this route, look for some in your area. So, depending on your country of residence, PayPal also supports Bitcoin Cash.
What is Bitcoin Cash for? First, using BCH is easy. So, if this is the case, all you have to do is send the asset to the wallet using the wallet address. The recipient can be someone else or a reseller.
Several merchants worldwide accept Bitcoin Cash, among other cryptocurrencies, for payment. Travel sites, goods and services, e-commerce, and more can buy the asset.
But unfortunately, the asset is not as popular as Bitcoin for BCH holders and supporters. Therefore, you are more likely to find merchants that accept Bitcoin than Bitcoin Cash.
Bitcoin Cash Guide: The future of bitcoin cash
As for the future of cryptocurrencies, Bitcoin Cash will find its place in the market. There are some opinions about Bitcoin, but as more merchants accept assets, most interest shifts to BCH. Finally, there is no denying that BCH is a faster and cheaper network.
However, Bitcoin Cash is competing with similar projects, the main one of which is Litecoin (LTC) – which often lags alongside the asset in terms of market cap. Furthermore, Litecoin’s features vary from Bitcoin Cash’s, bringing its pros and cons. So it’s really about which platform meets the needs of a specific user and which platform brings the features that the general public will most want.