Soon after Blockchain technology came into existence digital Currency is booming in length and breadth. The electronic cash is solving a hell lot of problems. While, many organization, governments and most importantly, people are accepting the e-cash. The very nature of this blockchain platform has led to worldwide revolution of switching from traditional way of transferring funds to the unorthodox method of dealing with programable currencies. There are obviously many more applications of blockchain technology but our primary focus here is, cryptocurrency. As powerful as Bitcoin(BTC), there’s a fork of it in the cryptocurrency market – Bitcoin Cash (BCH), which also has a name ‘the Bitcoin fork’. In this post, we will see what is Bitcoin cash and a lot more about Bitcoin Cash.
What is Bitcoin cash?
It is a peer 2 peer e-cash system on the internet. Furthermore, it is decentralized (just like its other counterparts) with no banks and trusted third-party interventions in between. Bitcoin cash is different from Bitcoin. It is a fork of traditional Bitcoin’s blockchain technology. Bitcoin cash fork is a continuation of the Bitcoin’s project as digital cash and it comes with upgraded rules that allows it grow and scale. Anyone who had Bitcoin when BCH was created naturally became the owners of Bitcoin cash too. But if you buy Bitcoins after August 1st 2017 13:16 UTC, you will not be the get an equal number of Bitcoin cash. Therefore, any transaction/purchase of Bitcoin after the mentioned date will not include Bitcoin cash and vice-versa.Both the currencies became standalone there after. BCH can be used to buy/sell things just like you do with the regular paper currency, but this time must faster and smarter.
Features of Bitcoin Cash
Bitcoin cash is not new, it has the Bitcoin at roots. Therefore the new features do not get full credit as old features of the Bitcoin gets. Bitcoin cash has a handful yet powerful features:
- Fast: Your transaction will be done in matter of seconds and confirmed in a couple of minutes.
- Reliable: The Bitcoin cash platform has a network that runs smoothly without any congestion.
- Cheap & Affordable: It allows sending money globally at the cost of pennies. $0.01 to be exact.
- Simple & Sweet: Anyone new to the technology can use it with ease. It’s fuss-free and easy.
Bitcoin’s blockchain has a 1MB of blocksize that can manage only 3-5 transactions per second while Bitcoin cash’s blockchain has an 8MB blocksize. Furthermore, the new SigHash type in the Bitcoin cash’s ecosystem provides users to protect hardware wallets and eliminate the quadratic hashing problem. A responsive proof-of-work in Bitcoin cash’s ecosystem, the difficulty adjustment allows miners to migrate from the legacy of Bitcoin blockchain as desired while providing protection against hashrate fluctuations.
Is Bitcoin Cash worth your investment?
Just like every other cryptocurrency, even Bitcoin cash is traded like stock. This will keep going untill the cryptocurrency becomes the primary source of expenses. However, trading is not the only thing done with the currency. While It was not created from scratch, i.e. it was a fork of the Bitcoin legacy (and there are many other forks it) but none of them are as powerful Bitcoin cash is. Furthermore, Bitcoin cash price was 1581.81 USD at the time of writing this post. Hence it is definitely worth investing, if not transact anything as of now.
How to buy Bitcoin cash?
Bitcoin cash price is almost $1600 and increasing. You want to invest, you are capable to investing this much but confused where to buy? Even if you know about it, you’re not sure if it’s trusted/reliable or not? Don’t worry, I got you covered.
There is no in-house way where you buy BCH, however the official website has listed a handful of exchanges where you can first buy Bitcoin cash witth your paper currency and then trade it as per your intelligence. Out of the whole lot, I’ve personally have used and tested two of them.
Both the exchanges are very popular and trustworthy. You can rely for your money with these exchanges. Coming to storing part, the official website also lists Bitcoin cash wallet that are trust worthy and reliable. Again, I have personally tested & reviewed – The Ledger Nano S which outperforms all the other Bitcoin cash wallets.
While, Bitcoin price is nearing $10,000 mark you can expect the same with Bitcoin cash price too. These two currencies are in sync, as Bitcoin cash is fork currency of Bitcoin. Bitcoin price rises, there are very less chance that Bitcoin cash price will not.
Bitcoin Cash for Miners
The hash rate is a speed at which the network creates blocks. Higher hash rates makes mining more lucrative as it increases the opportunity of mining the next block and get the reward. The Bitcoin cash hash rate is pretty awesome to handle this load. BCH mining is going to be lot more cooler from near future.
The blockchain algorithm has a self-correcting mechanism that can speed up or slow down the hash rate. Furthermore, the mathematical formula at the heart of the algorithm of BCH goes through a difficulty adjustment every 2016 blocks so as to,
- Increase the competition in mining
- lowering the number of coins mined and
- Eventually increase the market value of coins mined.
The bottom line
Bitcoin miners have shifted their focus to fork currency’s larger blocksize network. Evidently, a lot of social media posts saying that the Bitcoin’s transactions are taking more than hours and sometimes days together to confirm, thanks to the 1MB blocksize of Bitcoin. Most of all, the difficulty adjustments for both the networks will ensure that Bitcoin remains the king of cryptocurrency market. Bitcoin vs Bitcoin Cash is a never ending tale, both are inter-dependent and self-reliant at the same time.
The fork currency is on a see-saw with Ripple as both are racing for the third spot on cryptocurrency table and this makes the investors and user to come on their toes as any of the currency can plunge or fall anytime. Furthermore, BCH is improving a lot on speed and reliability. There is research going on for increasing the blocksize (up to 32MB) and hence users will be able to produce/transact/trade a lot more transactions per second. Good news Miners!!
Consequently, this will make the market value of the fork currency higher and higher. The company has planned a lot of cool features that are to roll out and these features will further lower the fees, I can’t imagine lower than $0.01 USD – a few more decimal places? I don’t know. That being said, miners will be losing a part of their incentives if the transaction fee lowers any further.
The increase in blocksize will do good in miner’s favor because with an increase in blocksize increases the number of transactions per second which increases the incentive per transation on average. Finally, Bitcoin needs to grow and be more accessible for the “common man”. It will need to increase the blocksize in order to lower the transaction fee and fasten up the process.
Over to you, what do you think about Bitcoin cash? Are you planning to invest in it? What other information are you looking for? Let me know in the comment section below. I’d love to you hear from you.
Do you know someone who will be love to know about this information? If yes, share this piece of information with them. Also, in your network.