The journey of Bitcoin started back a decade ago, and currently, it has grown stronger than ever. Lately, it is not just regarded as the World’s first cryptocurrency, but it is often referred to as the most unaffordable, balanced and prominent cryptocurrency.
Without further ado, it is worth to note that the Bitcoin we all know and love today is not without flaws. The major consistent problem with the cryptocurrency is on how it handles its given amount of work.
Specifically, it has to do with the size of a distinct block of transactions. When a transaction is created, it is confined to just one MB. However, this limitation brings forth a delay in the time of the transaction procedure.
It basically limits the number of transactions the system can actually process. And so, in the process of enhancing the effectiveness of transaction, Bitcoin Cash (BCH) was birthed.
Why Bitcoin Cash (BCH) was Created
First gradually but currently, it has swiftly turned into one of the highly valuable cryptos in the universe. It cut off from its main source, i.e., Bitcoin itself. The focus of Bitcoin cash (BCH) is firstly to carry Bitcoin in a totally new path heading towards a quicker transaction speed and reduced fees. The transaction fees for Bitcoin Cash (BCH) amount to roughly $0.001 per transaction.
Meanwhile, Bitcoin cash is different from all other versions because it allows an increase from the regular one MB to a whopping 8MB. The main aim of bitcoin cash is to enlarge the number of transactions that the network processes.
It was debuted in the year 2017, the month of August and since that time, it has been successful. Created from the underlying Bitcoin model, the Bitcoin cash is a computerized currency that is actually;
- Decentralized- The system spreads all over diverse computers around the globe.
- Peer to Peer- A person can transfer Bitcoin cash straight to a different person from anywhere in the universe without the aid of third parties.
- Security- It makes use of a robust code to prevent cases of fraudulent activities, hackers, and even cyber-attack issues.
- Open- The complete history of every transaction is recorded in a public Blockchain that is easily viewed and validated by anybody.
The Origin of Bitcoin Cash (BCH)
It would interest everyone to know that the Bitcoin Cash was built due to the unsettling diverse opinions of members in the system concerning scaling the network. As an increased amount of people started utilizing bitcoin, the system labored hard to sustain the plenty of transactions.
As a result of this, lots of Bitcoin members waited for hours and days on end before their transactions finally went through. It caused lots of issues concerning how to resolve the obvious problem.
This finally led to the breaking of the community into two separate groups with different opinions. There were those favoring the enlargement of block size in the Blockchain against those favoring the modification of the way information is kept in the already existing blocks. With this came the hard fork.
The Hard Fork
To ensure that transactions were quickened, a group inside the Bitcoin ecosystem wanted the block size of the Blockchain to be bigger. This group majorly comprised of the miners.
However, they were not able to get enough back up from the bigger Bitcoin ecosystem to create the desired consensus to take up Bitcoin in this path. Due to this, the group broke off or rather hard forked from the main Bitcoin Blockchain and created Bitcoin cash as the current cryptocurrency.
Bitcoin cash(BCH) actually recognized precisely the same Blockchain as the original Bitcoin until the period of the fork which was 1st of August, 2017. Transactions of Bitcoin cash was documented on a new Blockchain after the fork issue.
This was exclusively for Bitcoin cash, and the original Bitcoin managed its own original Blockchain.
Bitcoin Cash (BCH) Vs. Bitcoin (BTC)
The major difference between Bitcoin and Bitcoin cash is the block size on the Blockchain. Through enlarging the size of the blocks from the 1 MB of bitcoin to the 8 MB, Bitcoin cash enables lots of transactions to be processed in a single block.
The concept is to process larger transaction amount quicker and for cheaper fees. One other vital difference between the two cryptocurrencies is that the level of complexity associated in the mining of Bitcoin cash is different.
This exclusively depends on the number of miners operating in the system. Lots of Bitcoin miners have joined the Bitcoin cash system for this singular reason. This is because it enables them to produce bigger profits at a quicker rate compared to bitcoin mining.
Where can it be Used as a Form of Payment?
A whole lot of crypto exchanges have taken adequate steps to assimilate Bitcoin cash. However, it is possible that traders will be joining as the crypto is continually growing. For the users seeking to utilize crypto to purchase goods and services, BCH is not yet approved by sellers as well as those who do not collect Bitcoin too.
What to Consider Before Purchasing Bitcoin Cash (BCH)?
Since Cryptos are known to be ruggedly volatile, it is not possible to state without a doubt if the value of the Bitcoin cash (BCH) will either increase or decrease. From its release, it has increased rapidly and turned out to be rated amongst the worthy Cryptos in the globe. It has however experienced big price fluctuations daily.
Judging from the views of merchants, the balance of the Bitcoin cash should be examined. Many doubters have the belief that it cannot displace Bitcoin as number one in the crypto space and so will stop existing in years to come.
However, lovers of the bitcoin cash have the belief that it provides a boost over Bitcoin and for this, will attain value and finally overtake Bitcoin in the future.
What to Look Out for
Since it is still new, bitcoin cash has experienced vital price diversities in its beginning days. There is currently a debate on its actual worth and how many supporters it has, plus if its resolve to the scaling issue of Bitcoin is actually a success.
Though the future of Bitcoin cash (BCH) is still unknown, its worth has increased rapidly undermining its brief existence. It is plagued with diverse issues and fear of the unknown to take a step further.
However, it is rated by its members as a developed and enhanced system that will displace the original bitcoin. Meanwhile, there are still popular people in the crypto world who have stated that Bitcoin cash actually does not have the same support running bitcoin.
Nonetheless, everyone will get a transparent picture of how both bitcoin cash and Bitcoin will advance in the future.
Boost your knowledge and read more about Bitcoin.