What is Bitcoin Cash?

Image Credit: Zipmex

Bitcoin Cash (BCH) was created on August 1st, 2017, as a result of a hard fork from the Bitcoin blockchain. The fork was the result of a long-standing disagreement among the Bitcoin community about the best way to scale the network to accommodate more transactions.

One group of developers and users, led by Bitcoin.com CEO Roger Ver and Bitcoin ABC lead developer Amaury Sechet, proposed a solution called a "block size increase." This solution would increase the maximum block size limit on the Bitcoin blockchain from 1 megabyte to 8 megabytes. This would allow for more transactions to be processed per second and would make the network more suitable for use as a medium of exchange.

Another group of developers and users opposed this proposal, arguing that it would centralize the network by giving more power to large mining pools and would make the network more susceptible to a 51% attack.

Ultimately, the block size increase proposal was implemented on the Bitcoin Cash blockchain, which was created as a result of the hard fork. This means that at the time of the fork, holders of Bitcoin received an equivalent amount of Bitcoin Cash.

Since its creation, Bitcoin Cash has been involved in several hard forks, resulting in the emergence of multiple versions of the coin such as Bitcoin Cash ABC and Bitcoin Cash Node, however BCH is currently the most used version.

What is Bitcoin Cash?

Bitcoin Cash (BCH) is a cryptocurrency that was created as a fork of the Bitcoin blockchain. The main difference between the two is that Bitcoin Cash has an increased block size limit of 8 megabytes, compared to Bitcoin's 1 megabyte limit. This allows for more transactions to be processed on the BCH blockchain per second, which its supporters believe will make it more suitable for use as a medium of exchange, like cash. The fork that created Bitcoin Cash took place on August 1st, 2017, and holders of Bitcoin at that time received an equivalent amount of Bitcoin Cash.

Understanding Bitcoin Cash

Bitcoin Cash (BCH) is a cryptocurrency that was created as a fork of the Bitcoin blockchain. It is similar to Bitcoin in many ways, but it has a few key differences that set it apart.

One of the main differences between Bitcoin and Bitcoin Cash is the block size limit. The block size limit is the maximum amount of data that can be stored in a block on a blockchain. Bitcoin has a block size limit of 1 megabyte, which means that the network can only process a certain number of transactions per second. Bitcoin Cash, on the other hand, has a block size limit of 8 megabytes, which allows for more transactions to be processed on the network per second. This makes Bitcoin Cash more suitable for use as a medium of exchange and for everyday transactions.

Another difference is the approach to scaling solutions, Bitcoin cash is more focused on increasing block size while the bitcoin community is trying to scale through different layer solutions such as Lighting Network.

Bitcoin Cash also has a different mining algorithm than Bitcoin. Bitcoin uses a proof-of-work algorithm called SHA-256, while Bitcoin Cash uses a different proof-of-work algorithm called SHA-256d. This means that the process of mining Bitcoin Cash is slightly different than mining Bitcoin, and different types of hardware may be more suitable for mining each coin.

It is important to note that Bitcoin Cash is a separate cryptocurrency and it is not backwards-compatible with the Bitcoin network. This means that transactions and addresses on the Bitcoin network are not valid on the Bitcoin Cash network and vice versa, and exchanges and wallets that support one may not support the other.

How Is Bitcoin Cash Different From Bitcoin?

Bitcoin Cash (BCH) is a cryptocurrency that was created as a fork of the Bitcoin blockchain, but it has a few key differences that set it apart.

The main difference between the two is the block size limit. The block size limit is the maximum amount of data that can be stored in a block on a blockchain. Bitcoin has a block size limit of 1 megabyte, which means that the network can only process a certain number of transactions per second. Bitcoin Cash, on the other hand, has a block size limit of 8 megabytes, which allows for more transactions to be processed on the network per second, making it more suitable for use as a medium of exchange for everyday transactions.

Another difference is the approach to scaling solutions, Bitcoin cash is more focused on increasing block size while the Bitcoin community is trying to scale through different layer solutions such as Lighting Network. This disagreement led to a hard fork of Bitcoin's blockchain in 2017, creating Bitcoin Cash as a new cryptocurrency.

Additionally, Bitcoin Cash has a different transaction signature algorithm, this means that transactions on the BCH network use the same elliptic curve signature algorithm as Bitcoin, but it's called "modification of the Schnorr's algorithm" which is said to provide a smaller signature and more flexibility in creating new opcodes.

It's also different in terms of mining algorithm, Bitcoin Cash uses a different proof-of-work algorithm called SHA-256d, while Bitcoin uses a proof-of-work algorithm called SHA-256.

Lastly, it is important to note that Bitcoin Cash is a separate cryptocurrency, with its own market and exchange rate. Bitcoin Cash transactions and addresses are not valid on the Bitcoin network, and vice versa, and exchanges and wallets that support one may not support the other.

Is Bitcoin Cash Still Available?

Yes, Bitcoin Cash (BCH) is still available and actively traded. It was created on August 1st, 2017 as a fork from the Bitcoin blockchain and it's still available for trading on various cryptocurrency exchanges. It has its own market capitalization and it's also supported by different wallets and merchants.

It's worth mentioning that Bitcoin Cash is not as widely adopted and used as Bitcoin, also since the fork that created it, there have been several other forks and forks of forks, which creates different versions of Bitcoin Cash and can lead to confusion and lack of support on some platforms or services, However, BCH is still widely available and supported.

As with any investment or speculative instrument, it is important to conduct proper research and due diligence before investing in Bitcoin Cash or any other cryptocurrency. It is also highly volatile and its value can fluctuate widely.

Has Bitcoin Cash Been Successful?

Bitcoin Cash (BCH) has had a mixed track record of success since its creation in 2017. In terms of its technical development, Bitcoin Cash has made some notable achievements, specifically the increase of block size limit to 8mb. This increase allows for more transactions per second, making it more suitable for use as a medium of exchange and for everyday transactions, as well as lower fees, which makes it more accessible for small transactions and micropayments. Also, it's said that its new algorithm provides smaller signatures and more flexibility.

However, it's worth mentioning that Bitcoin Cash is not as widely adopted and used as Bitcoin, and its value has been highly volatile. Despite this, it has still managed to maintain a significant market capitalization and a sizable community of supporters.

In terms of its overall success, it can be argued that Bitcoin Cash has not been as successful as its creators might have hoped. It has not gained widespread acceptance as a medium of exchange and has not yet succeeded in surpassing Bitcoin as the dominant cryptocurrency. It has also struggled to gain support among merchants and businesses, and has a smaller developer community.

It's important to note that this is a subjective question, success can be measured in different ways, and opinions may vary.

Why Is Bitcoin Cash Cheaper Than Bitcoin?

The price of Bitcoin Cash (BCH) is typically cheaper than that of Bitcoin (BTC) for a few reasons:

• Market capitalization: Bitcoin has a much larger market capitalization than Bitcoin Cash, which means that there is more demand for Bitcoin and more buyers and sellers trading it. This results in a higher price for Bitcoin than for Bitcoin Cash.
• Liquidity: Bitcoin is much more liquid than Bitcoin Cash, which means that it's easier to buy and sell Bitcoin in large quantities without affecting the market price. This also results in a higher price for Bitcoin.
• Adoption: Bitcoin is more widely adopted and used than Bitcoin Cash. It's supported by more exchanges, merchants, and wallet providers, and has a larger developer community. This also contributes to its higher price.
• Supply and demand: Like any other asset, Bitcoin and Bitcoin Cash's prices fluctuate depending on the supply and demand for it, for instance, if there are more buyers than sellers for a certain cryptocurrency the price will go up, if there are more sellers than buyers the price will go down.

It's worth noting that the price of Bitcoin Cash and Bitcoin are highly volatile, and can change rapidly. So, the price difference between the two can also be influenced by external factors like news, regulations, and overall sentiment in the crypto market.

Where Can You Buy Bitcoin Cash?

Bitcoin Cash (BCH) can be purchased on various cryptocurrency exchanges. Some of the most popular exchanges that support BCH include:

• Binance: One of the largest and most popular cryptocurrency exchanges in the world, with a wide variety of trading pairs.
• Coinbase: A major exchange based in the United States that also offers a brokerage service for buying and selling Bitcoin Cash.
• Kraken: A well-established exchange that has been operating since 2011 and supports BCH trading.
• Bitstamp: a European Union-based cryptocurrency exchange that offers trading for BCH among other currencies.
• Huobi: A Singapore-based exchange that support Bitcoin cash along other currencies
• Bittrex: A US-based exchange that supports BCH trading

It's worth noting that the availability of buying BCH may vary based on your location and the regulations of your country. Some exchanges may not be available in certain regions. It's also important to check the fees, security measures and reputation of the exchange you choose before starting to trade.

Keep in mind, it's always important to conduct your own research and due diligence before investing in any cryptocurrency, including Bitcoin Cash.