About Bitcoin Cash?
Bitcoin Cash (BCH) is a digital currency that emerged as a hard fork of its predecessor, Bitcoin. The coin was created to serve as a cheaper and faster alternative to Bitcoin.
As Bitcoin grew in popularity, it began to face issues with scalability. The 1 MB block size limit, initially put in place to prevent spam transactions, was becoming a bottleneck, leading to slower transaction times and higher fees.
By 2017, the Bitcoin community was divided over how to address these scalability issues. One group suggested to implement of a solution known as Segregated Witness (SegWit), which would effectively increase the block size by removing certain parts of the transaction data. Another group believed that a simpler solution would be to increase the block size limit.
After failing to reach a consensus, the community split into a hard fork on August 1, 2017, creating a new cryptocurrency Bitcoin Cash. The hard fork was led by a group of developers, miners, and enthusiasts, including notable figures like Roger Ver and Jihan Wu.
In November 2018, Bitcoin Cash underwent a hard fork of its own due to disagreements within the community about the future direction of the project. This split resulted in two new cryptocurrencies: Bitcoin Cash ABC (now known as Bitcoin Cash) and Bitcoin SV (Satoshi's Vision).
Like Bitcoin, Bitcoin Cash have a hard cap of 21 million coins and uses a PoW consensus algorithm to secure the network.
Bitcoin Cash Price
The current BHC is $291 USD with a market cap of $5 435 108 608 USD. It has a circulating supply of 19 432 794 BCH coins and a maximum supply of 21 000 000 BCH coins.
BHC can be bought on multiple crypto exchanges including Binance, OKX, Kraken, KuCoin, Bitrue, Bybit and many more.
How does Bitcoin Cash work?
Bitcoin Cash operates on the same fundamental principles as Bitcoin. It uses blockchain technology, a type of distributed ledger that records all transactions across a network of computers. Each transaction is grouped into a 'block,' and these blocks are linked together in a 'chain,' hence the term 'blockchain.'
Bitcoin Cash shares the same genesis block with Bitcoin, meaning they have a common history up until the point of divergence in August 2017. This divergence, known as a 'hard fork,' occurred due to disagreements within the Bitcoin community about how to address scalability issues.
The primary technical difference between Bitcoin and Bitcoin Cash is the block size. Bitcoin has a block size limit of 1 MB, while Bitcoin Cash initially increased this limit to 8 MB, and as of a May 2018 network upgrade, the block size limit has been raised to 32 MB. This larger block size allows Bitcoin Cash to process more transactions per block, which leads to faster transaction times and lower fees.
When a transaction is made in Bitcoin Cash, it needs to be verified by the miners in the network. Miners are nodes in the network with high computational power. They validate transactions by solving complex mathematical problems, a process known as proof of work. Once the problem is solved, the transaction is added to a block. When a block is filled with transactions, it's added to the blockchain. The miner who solves the problem is rewarded with a certain amount of Bitcoin Cash, providing an incentive for more people to participate in the network.
Bitcoin Cash also introduced a new transaction type with features like input value signing and improved hardware wallet security. It also added a difficulty adjustment algorithm. This algorithm adjusts the difficulty level for mining new blocks based on the network's needs, ensuring a consistent flow of new blocks.
What is Bitcoin Cash Used For?
Bitcoin Cash, like other cryptocurrencies, serves multiple purposes. Its primary use is as a medium of exchange. With its fast transaction times and low fees, it's an attractive option for both online and brick-and-mortar businesses. It's also becoming increasingly popular for remittances, offering a cost-effective way to send money across borders.
Beyond its use as a currency, Bitcoin Cash also represents a store of value. Some investors hold Bitcoin Cash as a long-term investment, betting on its potential future value. It's also used for speculative trading, with traders aiming to profit from price fluctuations.
Bitcoin Cash was created by a collective of Bitcoin enthusiasts, developers, and miners who were concerned about Bitcoin's scalability issues. The most notable figure in this group is arguably Roger Ver, a prominent Bitcoin investor and advocate often referred to as 'Bitcoin Jesus.' Ver was instrumental in promoting the adoption of Bitcoin Cash, believing in its potential to fulfill the original promise of Bitcoin as "Peer-to-Peer Electronic Cash."
Despite the controversy that often surrounds the world of cryptocurrencies, the team behind Bitcoin Cash remains committed to their vision. They continue to work on enhancements and upgrades to ensure Bitcoin Cash remains a viable choice for users worldwide