Beyond the technologies they have brought, led by blockchain, cryptocurrencies are also sometimes distinguished by unique stories, which take shape as they become established in the economic environment.
The history of Bitcoin Cash (BCH) cryptocurrency falls into some of this register, mixing rivalry, conformism and solidarity. Does such a statement intrigue you?
Explore this Bitcoin Cash guide to understand what it is, how it works, and how you can use it. In addition to discussing its history, functionalities and objectives, we will provide you with our viewpoint on Bitcoin Cash. Should you invest in it or not? Let’s find out!
Bitcoin Cash’s founder created Bitcoin Cash in 2017. Bitcoin Cash was engineered based on Bitcoin. The Bitcoin Cash cryptocurrency shares the same technology as the cryptocurrency considered today as the king of crypto.
Blockchains are shared public registers that are characterized by an excellent level of security for transactions carried out. Within the blockchain, there are blocks, each of which contains a series of transactions that have received a certain validation via mining.
These miners create new BCH tokens and guarantee the security of a network thanks to the computing power of the equipment used. To be complete, this definition must, of course, evoke the nuance between Bitcoin and Bitcoin Cash.
The nuance is in the size of each network’s blocks.
Bitcoin has a 1MB size limit for its blocks with around 7 transactions processed per second. Bitcoin Cash displays superior characteristics. The BCH network increased its limit to 32MB in 2018. In comparison, on the Bitcoin Cash blockchain, 116 transactions are executed every second.
Binance
Binance
By recounting the history of the crypto Bitcoin Cash, we almost systematically end up with that of Bitcoin.
Bitcoin Cash comes from a split from BTC, which is called a hard fork that took place on August 1, 2017. In crypto jargon, we speak of a hard fork when the protocol of a blockchain undergoes major changes.
From these changes, a new network is generally born that is incompatible with the previous one. The hard fork carried out on the Bitcoin blockchain on August 1, 2017 was the result of a disagreement between members of the community. How should the difficulties of scaling Bitcoin be resolved?
Two proposals clashed: for some of the miners and developers, an increase in the size of the blocks appeared relevant, while for the other, a delegation of resources would be appropriate. In the first case, larger blocks could process more transactions per second.
The second option involved deploying a Segregated Witness (SegWit) to move certain transaction data to third-party infrastructure. The blocks would then have more space.
Without a unanimous agreement, advocates of increasing the size of blocks launched their own Bitcoin, which then took the name Bitcoin Cash. It was within the ViaBTC pool that the first BCH block was mined. Bitmain participated in the mobilization of resources, and BTC holders received an equivalent number of BCH.
Since existing and operating in complete autonomy, the BCH crypto is charting its course in the evolving crypto universe.
The reasons for Bitcoin Cash can be read on several levels. In a global view and assessment of history, the disagreement between the two camps of the original Bitcoin community is the reason why BCH was born. However, this would be a simple cause rather than a real technical reason.
The underlying reason for the creation of Bitcoin Cash lies in the need for scalability. On the early BTC network, as the number of transactions increased, the available infrastructure and technology seemed to struggle more and more to accommodate them. As a result, transaction processing fees were growing exponentially.
For everyday transactions and small payments, Bitcoin thus became uninteresting. In response to this problem, Bitcoin Cash proposed a larger block size. This redesign gave it the capacity to accommodate more transactions per second and therefore reduce associated fees.
By dissecting the chronology of events more deeply, we could also say that the BCH aimed to remain faithful to the original vision of Satoshi Nakamoto. The famous anonymous creator of Bitcoin said he dreamed of an easy-to-use electronic payment system for everyday payments.
He wanted to find an alternative to the traditional financial system through a decentralized currency accessible to all. With this in mind, the Bitcoin Cash ecosystem is more open and inclusive.
Although coming from a change of direction in the existence of Bitcoin, the crypto Bitcoin Cash has retained several principles. The first operating element is the existence of its the blockchain. The BCH crypto has its own blockchain, which is used to issue BCH coins and at the same time hosts all transactions.
From a technical point of view, in this large public register that constitutes the blockchain, it is the consensus mechanism of Proof-of-Work (PoW) that is implemented.
The PoW mechanism relies on validation nodes and the work of crypto miners. To create new blocks, miners must solve complex equations. Their work confirms the BCH network. Each new block results in the creation of Bitcoin Cash coins.
The new BCH coins, in addition to transaction fees, serve to reward the work of miners.
Another point of similarity between Bitcoin Cash and Bitcoin in terms of operation is the number of tokens. Like the parent crypto, BCH is scheduled for a total supply of 21 million tokens. In addition, the reward for miners is reduced by half every 4 years (via halving). Unlike BTC, however, Bitcoin Cash has not changed the data structure of its blockchain.
Increasing block sizes allowed BCH to solve the problem of needing more resources to support transactions. If necessary, the Bitcoin Cash community will vote for further expansion of the size of each BCH block.
To buy Bitcoin Cash, most crypto exchanges should be able to provide you with the necessary tools. Despite the split from the original Bitcoin, Bitcoin has retained most of the latter’s characteristics that attracted crypto investors and strengthened market confidence.
As a result, most exchanges allow crypto enthusiasts to obtain units of BCH. Which crypto platform should you then turn to? Here is our selection.
Founded by the Winklevoss brothers, Gemini is a crypto platform through which users can buy, sell and store a wide variety of crypto. Among the crypto supported by the platform is Bitcoin Cash.
So, if you want to buy BCH, you can confidently head to Gemini. The exchange launched in 2014 with the reputation of having advanced security, including an institutional storage solution for cryptos and implementing a multitude of rules.
Gemini
Gemini
Best known for its social trading features, the eToro platform offers you the ability to buy and store cryptocurrencies. The website and app include a wallet feature through which you can purchase and store BCH coins. You can also send your BCH to this eToro wallet from any source.
eToro
eToro
The seniority of Bitstamp is certainly the main factor that characterizes it in comparison with other exchanges. The Bitstamp platform has in fact started its activities in Europe in 2011. Based in Luxembourg, it carefully selects the cryptocurrencies that it lists.
Bitcoin Cash is among the most credible cryptocurrencies on the market you can therefore buy your BCH with fiat currencies on Bitstamp. Among these 3 platforms, we have a certain preference for eToro.
Its interface undeniably represents a major argument for a person wishing to make crypto investments with ease.
Furthermore, for active investors, who do not like to just leave their assets idle, the eToro trading space allows you to trade to take advantage of market fluctuations. For beginners, the copy trading function constitute an excellent option for reproducing the positions of the most successful traders.
Now: 41 Fear
Now: 41 Fear
Yesterday: 40 Fear
Last Week: 39 Fear
Bitcoin Cash can hardly shed its identity as a “crypto derived from Bitcoin.” For this reason, considerations relating to investment in Bitcoin Cash regularly tend to leave aside the real potential of this crypto. However, this potential deserves to be scrutinized!
Unlike other dubious cryptos that have emerged over the years, Bitcoin Cash crypto meets the key conditions of decentralization. Its security, as a non-centralized and non-manipulatable currency, therefore, seems indisputable.
In terms of Bitcoin Cash price, how does this crypto behave?
We could summarize it in one sentence: BCH is struggling on the market, having yet to express its full potential. As of the latest update, the live Bitcoin Cash price in USD is 222.69, reflecting the current Bitcoin Cash stock price and trading volume. You can easily check the current exchange rate of Bitcoin Cash to USD.
Worth 412.58 USD when it split with Bitcoin’s main network, Bitcoin Cash generated strong enthusiasm in the first weeks. In December 2017, its value had climbed to 3,324 USD, its highest price to date.
Subsequently, crypto experienced a prolonged descent over several years. The 2021 bull market allowed it to rise from 342 USD on 01/01/2021, to 1509.11 USD in July 2021. Subsequently, the price of Bitcoin Cash resumed its bearish course. As of April this year, 1 BCH is trading at around 120 USD.
Bitcoin Cash clearly seems to have a different fate than Bitcoin. It would seem that Bitcoin Cash charts fare well, but the future is never certain.
We cannot begin this review or make a Bitcoin Cash prediction without first highlighting the basic characteristics of BCH, which make it a trustworthy cryptocurrency. Crypto operates on a blockchain of the same type as that of Bitcoin, which is at the origin of the crypto revolution. In terms of security and decentralization, there is therefore nothing to complain about.
Nevertheless, the history and identity of the crypto Bitcoin Cash sticks to it. Investors can explore the potential of earning passive income through Bitcoin Cash staking, a process where they lock up their tokens to contribute to the network and, in return, receive rewards over time.
For many investors, rather than investing in a traditional version of Bitcoin, which has not evolved, it is better to turn to the original Bitcoin, which has been able to adapt to the demands of change. The strong Bitcoin community also remains incomparable, in terms of size, to that of Bitcoin Cash.
Moreover, Bitcoin Cash crypto’s value weakened in 2018, with the separation of the Bitcoin SV community. The BCH crypto therefore has potential and presents solid qualities. But this potential is slow to be expressed because the asset offers almost the same functionalities as Bitcoin, but with less of the positive advantages of structural change and a strong community.
Will Bitcoin Cash recover from the community’s opposition to any changes other than increasing block sizes? Will the community agree to make further changes to the crypto’s technology? It is perhaps only on this condition that its ability to grow will be revealed. For the moment, investment in BCH is only appropriate for crypto trading or for long-term storage.
In any case, make your own decisions about Bitcoin Cash’s future based on tangible elements, and invest prudently.
1Inch Network
1Inch Network
