A Guide to Bitcoin Cash
What is Bitcoin Cash?
Bitcoin Cash is a hard fork from Bitcoin, which is designed to solve the scalability problem. According to the official website, Bitcoin Cash is peer-to-peer electronic cash for the internet. In fact, a scalable mining difficulty is operated by Bitcoin Cash with a view to ensuring smooth transactions.
Bitcoin Cash has been gaining a wide popularity since its inception. There are some reasons behind it indeed. One of the most robust reasons is that it has the ability to process transactions rapidly. Besides, it is fully decentralized without having any central bank. And finally, it does not require any trusted third party to operate.
The authority of Bitcoin Cash, however, believes that they are implementing Satoshi’s vision for the future of Bitcoin. As a result, investors can see a potentially bright future of Bitcoin Cash Cryptocurrency. So, those investors who are seeking a robust platform of cryptocurrency—where they can enjoy the facility of rapid transactions—to invest tend to get in touch with Bitcoin Cash.
A Brief History of Bitcoin Cash:
There was an argument between different factions of the Bitcoin Community, and the argument was about scalability. In fact, that argument of scalability finally resulted in Bitcoin Cash.
We all know that Bitcoin is a popular cryptocurrency on the market. That’s why it has grown very rapidly. But the problem is that the transaction speed of the network has become slower because of the growing-up miners.
Many miners argued over the years for an increase in the block size with a view to facilitating faster transactions. Finally, Bitcoin implemented the SegWit—Segregated Witness—solution in August 2017. The SegWit, however, is designed to resolve the scalability debate. The solution has theoretically increased the 1 MB limit of a block up to approximately 4 MB.
The Difference between Bitcoin&Bitcoin Cash:
Practically, there is a very little difference between the two cryptocurrencies. However, the main differences between the two currencies are as follows:
I. Bitcoin Cash is a scalable decentralized digital currency, while Bitcoin is a decentralized currency.
II. The two currencies have two unique symbols—BTC for Bitcoin and BCH for Bitcoin Cash.
III. Bitcoin Cash charges lower fees than that of Bitcoin.
IV. Bitcoin has greater community acceptance than Bitcoin Cash.
V. Bitcoin Cash has fewer wallets and exchanges than Bitcoin.
VI. Bitcoin Cash has less mining support and infrastructure than Bitcoin.
VII. Bitcoin is more secured and stable than Bitcoin Cash.
VIII. Bitcoin Cash ensures more rapid transactions than Bitcoin.
IX. The market cap of Bitcoin Cash is over $65 billion, while Bitcoin has a market cap of over $250 billion.
How is Bitcoin Cash Made?
Like Bitcoin, Bitcoin Cash is created digitally by its community. It is totally different from the usual currencies used by different banks and governments. However, there is a technology that has been used to create this digital currency; the technology is called blockchain. Recording every transaction ever made by the miners, the technology acts as a general ledger.
The miners generally use their computers to process a transaction. When a transaction is processed, the miners are rewarded with Bitcoin Cash. The most interesting thing, however, is that BCH operates on a scalable difficulty. And for this facility, some miners are encouraged to adopt BHC to make more money. But unfortunately, there is a side effect of this facility; the market can be flooded with a large number of coins at once. This can ultimately push down the value of Bitcoin Cash.
4 Reasons to Invest in Bitcoin Cash:
Amongst numerous cryptocurrencies, Bitcoin Cash has a high potential of making the profit. Generally, there are some facilities in the platform, which attracts a great number of investors all over the world. By the way, if you are an investor looking for investing somewhere in the arena of cryptocurrencies, you might be benefited from knowing the reasons to invest in Bitcoin Cash. The reasons are, however, as follows:
• Low Transaction Fees: As there are much larger blocks with which Bitcoin Cash operates, the users don’t have to spend much money on transaction fees. In contrast with BCH, BTC has restricted block space, and more often, the block space is scarce. That’s why miners have to process their transactions with higher fees in Bitcoin.
• Rapid Growth: Another reason to invest in Bitcoin Cash is its rapid growth. Since the inception, Bitcoin Cash is rapidly growing up without looking back. In the beginning, everyone holding a Bitcoin balance was automatically credited with the equivalent balance in Bitcoin Cash. This is one of the primary reasons for its rapid growth. Moreover, Bitcoin Cash offers numerous facilities to its users, and that’s why it’s growing very fast.
• High Transaction Capacity: Bitcoin Cash has a larger block-size than any other platforms of cryptocurrencies. As a result, it has a high transaction capacity. Usually, Bitcoin Cash Blockchain can perform more than 24 transactions per second.
• On-chain Scaling: On-chain scaling facility is another reason to invest in Bitcoin Cash. Because of this facility, users can enjoy faster and more efficient transactions.
Finally, you have come up with all the basics about Bitcoin Cash. If you are an investor, you can now easily step forward to invest in Bitcoin Cash. And there is nothing to worry about the trading system if you are new to BCH. The trading system here is the same as trading in any other instrument.