What is Bitcoin Cash?

Back in August 2017, Bitcoin’s blockchain was forked, as a new cryptocurrency emerges— the bitcoin cash.

Bitcoin has restricted the processing time of transactions, which caused a flaw between factions within developing communities and bitcoin mining. The network was overcrowding it was a big problem for the company.

Some developers suggested solving it by changing the size of every block within the blockchain, but there are some groups who disagreed with the idea. The winning scheme was to fork bitcoin to create the Bitcoin cash.

Basically, instead of creating an entirely new blockchain and cryptocurrency starting all the way from zero, the fork allowed Bitcoin to create its duplicate version that has an identical history. Hence, all transactions on Bitcoin Cash are similar to that of Bitcoin’s core blockchain.

Before the splitting of Bitcoin and Bitcoin Cash, Bitcoin technically owns only one blockchain. After the split, it now owns two of them. If a person owns a Bitcoin before the split-off took place, his/her holdings were divided to half Bitcoin and half Bitcoin cash.

bitcoin cash fork

To put it simply, every person who owns a Bitcoin before the fork holds an identical amount of Bitcoin Cash that is recorded within their Bitcoin Cash’ blockchain.

This may seem too easy, but it’s not exactly that simple.

Way back, if you have control over your private coins, or keep your Bitcoins in an exchange that would permit you to credit your balances with Bitcoin Cash, then you are lucky to be able to access the new cryptocurrency.

However, at the time of the fork, if you had your holdings in Coinbase, you might be in deep sorrow to find out that they don’t have plans of distributing Bitcoin Cash or even associating with a new blockchain.

But everything has changed now. Bitcoin cash has proven its value and is now available and accessible on Coinbase.

Difference between Bitcoin Cash & other cryptos?

You must have been aware that there are tons of cryptocurrencies available in the market. They are also legitimate digital currencies, and some are even substantially better than Bitcoin, although they are just mimicked Bitcoin’s idea of decentralized currency, trying to make a quick buck.

There’s really nothing so special about Bitcoin Cash. It’s just Bitcoin’s solution to scale effectively.

bitcoin cash

Bitcoin Cash (BCH), just like other cryptos, has its own specifications and blockchain, as well as a distinction from Bitcoin. Bitcoin Cash has carried through an increased block size of 8MB to speed up blockchain’s verification process with a modifiable level of difficulty to set the seal on the chain’s survival notwithstanding the numbers of supporting miners.

In 2018, Bitcoin Cash’s maximum block size was expanded 4x from 8MB to 32MB. However, the actual sizes of the blocks on Bitcoin Cash remained just a small snippet of the 32MB limit.

Transactions on Bitcoin Cash

Now that Bitcoin Cash can process transactions at high speed compared to Bitcoin, the transaction fees are lower and the waiting time for every transaction become shorter.

Although Bitcoin Cash can process transactions way faster than the Bitcoin network, the brisk transaction verification time was accommodated with a drawback as well. For the reason that there is a larger block size associated with BCH, security relative to the Bitcoin network could be compromised.

Currently, Bitcoin still stands as the world’s most popular cryptocurrency, making the liquidity of Bitcoin cash seem to be way lower than that of the original Bitcoin. Investors still prefer to buy Bitcoin.

Concerns Surrounding Bitcoin Cash

While Bitcoin Cash (BCH) split from Bitcoin was fairly noteworthy, it is still not known and understood well by people outside the cryptocurrency community.

bitcoin in dark green back light

The second fork that occurred on Bitcoin Cash is also a sign that there’s a problem with the management of its developer tool. A substantial section of the pool was adulterating its original vision, making it subjected to more splits sooner or later.

Smart contracts are also becoming more and more relevant to cryptocurrencies. Yet, Bitcoin Cash (BCH) is yet to announce the implementation of smart contracts for their payment system, or any other transactions.

Moreover, unlike VeChain and Dash, which have an outlined and innovated detailed governance protocols that set voting rights, the design, and development of Bitcoin Cash appear to be centralized with its teams.

Trading Bitcoin Cash

The price of Bitcoin Cash is typically quoted around US dollars (USD) when you buy it on an exchange. Hence, if the price of the Bitcoin Cash rises against USD, you will be able to make a profit because its value has gone up compared to when you first bought it. 

However, if the price of Bitcoin Cash fall against USD, then you immediately decide to sell it, you would suffer a loss.

In a nutshell, although it has its own share of drawbacks, Bitcoin Cash is more competent and reliable than the original Bitcoin itself. Other people even say that it could become the core Bitcoin blockchain for online payment solutions.

Bitcoin Cash 2021 expert’s predictions say that the market will be quite bullish. Even Roger Ver, an early promoter of Bitcoin, had stated previously that Bitcoin Cash might double in price in the coming 12 months, making the coins go above $500 by next November.

DigitalCoinPrice also believes that Bitcoin Cash will be pushed to $1,138 by 2025, and skyrocket to $1,399 in the following year.

Is it a good investment? Well, the answer varies on the investor’s plan for the coin.

Predictions say that Bitcoin Cash will hit the bottom before rising up once again. If you find Bitcoin Cash interesting and want to invest in it, compromise with yourself that you will be putting your money in a place you cannot access for 5 years.

For the reason that predictions for Bitcoin Cash in 2022 are not quite positive, you should invest long-term now, and harvest the fruit of your patience by 2025/2026.

Keep in mind that cryptocurrencies fluctuate in price often, and so you should only trade or invest an amount that you can see falling out of your hands. You could either gain much or lose much in buying cryptocurrencies in general. Make sure you are comfortable one way or another.

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