What is Bitcoin cash?

What is Bitcoin Cash？

Bitcoin Cash (BCH) is both a digital cryptocurrency and a payment network. It emerged in 2017 as a result of a hard fork of Bitcoin, aiming to increase the number of transactions that can be processed.

The official website of Bitcoin Cash describes it as “peer-to-peer electronic cash for the Internet, completely decentralized, with no central bank and no need for a trusted third party operator.”

Blockchain forks are not uncommon in Bitcoin and other digital cryptocurrencies, but typically, a consensus is reached on which blockchain to use eventually. If consensus cannot be reached, then both blockchains will coexist, creating a new token currency, which in this case is Bitcoin Cash.

YouTube Link:https://www.youtube.com/watch？app=desktop&v=ONhbb4YVRLM#/

The hard fork occurred because there were differing opinions on how best to increase the block size limit. Some influential miners, developers, and investors favored implementing the SegWit2x protocol, originally scheduled to be implemented on the Bitcoin network in August 2017. Some dissenting parties later created Bitcoin Cash. Supporters of Bitcoin Cash believe that it aligns more closely with the original vision of Bitcoin's creator, Satoshi Nakamoto, who allegedly set a 1MB limit. However, Nakamoto also stated that “adjustments can be made as needed in the future,” predicting that as internet speeds increase and storage costs decrease, the blockchain could expand without compromising the decentralized currency concept.

Since its creation, Bitcoin Cash has become one of the most successful branches of Bitcoin. Roger Ver, an early adopter and prominent investor in Bitcoin, is also a supporter of Bitcoin Cash, referring to it as the “real Bitcoin.” Ver, often referred to as “Bitcoin Jesus,” has been a significant supporter of Bitcoin since 2011, believing it to be a way to drive economic reform. He later started supporting Bitcoin Cash because of its lower transaction costs and faster speed.

Reference: https://www.cmcmarkets.com/learn-cryptocurrencies/what-is-bitcoin-cash#/

Who is Roger Ver？

Roger Ver is a prominent investor and early Bitcoin adopter. He has invested over $1 million in many early Bitcoin startups, including Ripple, Z.Cash, Blockchain.com, Bitpay, Purse.io, and Kraken. He is also the CEO of Bitcoin.com and one of the five founders of the Bitcoin Foundation, to which he has donated over $1 million worth of Bitcoin. Ver sees Bitcoin as a means to achieve economic freedom. In the cryptocurrency community, he is also known as “Bitcoin Jesus.”

However, Ver is currently advocating for Bitcoin Cash. In a recent interview with Cointelegraph, Ver described Bitcoin Cash as the “real Bitcoin,” claiming that it will have a higher market value, trading volume, and a larger user base in the near future. He also mentioned that the majority of his cryptocurrency holdings are in Bitcoin, which may indicate his confidence in the asset.

Should you invest in Bitcoin Cash？

Bitcoin Cash may be a relatively young cryptocurrency, but it has positioned itself as a powerful one. As of the cutoff date, it ranks fourth in global market capitalization, behind only Bitcoin, Ethereum, and Ripple. As of January 22, 2018, it was also the second-ranked cryptocurrency in terms of value globally, with a single BCH trading at $1623.

Reference: https://cointelegraph.com/learn/what-is-bitcoin-cash#/

For many, BCH seems to address all the shortcomings of BTC, thus gaining increasing popularity.

However, all investments and trades carry risks, and thorough research should be conducted before making any decisions.

What are the differences between Bitcoin and Bitcoin Cash？

We already know that Bitcoin Cash is a result of a hard fork from Bitcoin. While they share many similarities, there are significant differences between the two.

Both share the same mode of transfer:

Bitcoin Cash and Bitcoin are both entirely decentralized, with no central bank issuing or operating them. They are transmitted as electronic cash via the internet.

Bitcoin Cash's past life is Bitcoin: It stored data in the blockchain and ran software that was compatible with all Bitcoin nodes. However, after the fork, it started executing new code, packaging large blocks, and forming a new chain.

Different block capacities for recording transaction information:

Bitcoin has a block capacity of 1MB, while Bitcoin Cash removed Segregated Witness (SegWit) and the 1MB block size limit, allowing for a maximum block size of 8MB and sticking to on-chain scalability. It is a blockchain asset generated by the BitcoinABC solution, offering greater stability and security. It can also support more transactions within a specific timeframe. The first block of Bitcoin Cash mined already exceeded 1MB in size.

Different algorithm difficulties:

Bitcoin has a cap of 21 million, and as more are mined, the algorithm difficulty increases. Bitcoin Cash uses a dynamic difficulty adjustment mode, where production difficulty adjusts with the overall computational power in the Bitcoin Cash network. The more nodes that join, the higher the difficulty; conversely, it decreases with fewer nodes. Because Bitcoin Cash has a longer block time, it started adjusting mining difficulty and increasing block generation speed on August 8.

Emergency Difficulty Adjustment (EDA): Bitcoin Cash uses a new algorithm that ensures the blockchain's normal operation when there are significant fluctuations in the number of miners. This helps to add additional stability to the digital cryptocurrency.

Lack of support for Bitcoin Cash:

Bitcoin Cash requires miners to verify transactions, requiring significant computing power. The verification process takes about 10 minutes, but the less computing power available, the longer the process takes. Consequently, many well-known foreign Bitcoin exchanges have stated that they do not support BCH transactions, including Coinbase, GDAX, Poloniex, Bitmex, and ExodusBitstamp, among others. However, some companies have expressed the possibility of supporting Bitcoin Cash if its progress continues smoothly.

Bitcoin Cash has scarcity:

During the Bitcoin fork, some Bitcoin Cash did not enter daily circulation because users could not obtain Bitcoin Cash from unsupported exchanges and wallets. This means that Bitcoin Cash is actually scarcer than traditional Bitcoin.

Bitcoin, as the flagship cryptocurrency, has already gained widespread acceptance. Based on the differences in the incentive mechanisms, various parties have significantly different attitudes towards Bitcoin Cash. However, before entering the debate, it is important to look at the future prospects of Bitcoin Cash, as valuable things are worth debating.

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How to trade Bitcoin Cash？

When you buy Bitcoin Cash in a transaction, its price is usually denominated in US dollars. In other words, you need to exchange US dollars for one unit of Bitcoin Cash. If Bitcoin Cash's price increases, you can sell it for a profit because it can be exchanged for more US dollars than when you bought it. If you're ready to sell during a price decline, then you'll incur a loss.

On the CMC Markets forex trading platform, you can trade Bitcoin Cash through a CFD account. This allows you to predict price movements without actually purchasing the cryptocurrency. You don't need to own Bitcoin Cash. Instead, the price of the position you establish will increase or decrease based on the price movements of Bitcoin Cash against the US dollar.

CFD accounts are leveraged products. This means you need to pay a percentage of the total trade amount as an opening deposit. You don't need to directly purchase all assets at once. Instead, you can access larger amounts through an initial deposit. Leveraged trading amplifies returns or losses as they are based on the total position amount.

How to use Bitcoin Cash？

Many cryptocurrency exchanges now integrate Bitcoin Cash, allowing people to send, receive, buy, and sell BCH.

As Bitcoin Cash continues to grow, merchants may start considering its application. However, so far, most merchants do not accept Bitcoin Cash payments, even those that accept original Bitcoin.

Therefore, the primary application of Bitcoin Cash for now is as an investment.

FAQ

What is Bitcoin Cash？

Bitcoin Cash is a fork (hard fork) of Bitcoin, created on August 1, 2017. It aims to improve Bitcoin's transaction speed and reduce transaction costs to address Bitcoin's scalability issues.

How is Bitcoin Cash different from Bitcoin？

Bitcoin Cash is a fork of Bitcoin, so they share the same blockchain history but have different transaction rules and block size limits. Bitcoin Cash has a larger block size, allowing for more transactions, thus reducing transaction fees and increasing transaction speed.

How can I get Bitcoin Cash？

You can purchase Bitcoin Cash on cryptocurrency exchanges that support Bitcoin Cash trading. You can also obtain Bitcoin Cash by holding Bitcoin in a wallet and receiving the corresponding amount of Bitcoin Cash when a fork occurs.

What is the use of Bitcoin Cash？

Bitcoin Cash can be used as a payment currency for purchasing goods and services. Due to its fast transaction speed and low transaction fees, some people also consider Bitcoin Cash as a digital currency for daily transactions.

What is the future development of Bitcoin Cash？

The future development of Bitcoin Cash depends on its market acceptance and the technical development and promotion efforts of its team. Although it shares similarities with Bitcoin, its development direction and market positioning may be slightly different. With the development of the cryptocurrency market and technology, Bitcoin Cash is expected to play an important role in the future.