What Is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a decentralized digital currency that was created as a result of a hard fork from the original Bitcoin blockchain in August 2017. It was created to address some of the perceived limitations of bitcoin, particularly in terms of scalability and transaction speed. Bitcoin Cash is a peer-to-peer electronic cash system that aims to become a sound global money with fast payments, micro fees, privacy and a larger block size.
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As a permissionless, decentralized cryptocurrency, Bitcoin Cash does not require a trusted third party. Bitcoin Cash was created as an alternative to the first and most valuable cryptocurrency — bitcoin (BTC). In 2017, the developers of BCH modified the BTC code and released their software version and a full-fledged competing product that split Bitcoin into two blockchains: Bitcoin and Bitcoin Cash.
Bitcoin Cash is the result of a hard fork in the blockchain due to community disagreements over bitcoin scaling and the SegWit upgrade. In addition, another hard fork that split Bitcoin Cash into two parts, Bitcoin ABC and Bitcoin SV, took place in November 2018 because of disagreements in the community over the future direction of the project. Similar to Bitcoin, Bitcoin Cash has a hard cap of 21 million coins and uses a PoW consensus algorithm to secure the network.
Who are the Founders and Investors in Bitcoin Cash?
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 the 'Bitcoin Jesus.’ Ver was instrumental in promoting the adoption of Bitcoin Cash, believing in its potential to fulfil bitcoin's original promise as "peer-to-peer electronic cash".
They created a Bitcoin Cash to increase the block size to 32MB and speed up the transactions. The new cryptocurrency was backed by some investors, and less than a day after its release, Bitcoin Cash's capitalization exceeded $7 billion.The first investors in Bitcoin Cash were those who had Bitcoin at the time of the hard fork. After the split, all Bitcoin owners received the corresponding amount of Bitcoin Cash.
What Is Bitcoin Cash Price Today?
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- In August 2017, Bitcoin Cash was created and initially traded at around $300.
- By December 2017, the price of Bitcoin Cash had risen to an all-time high of nearly $4,000.
- In early 2018, the price of Bitcoin Cash dropped significantly, falling below $1,000 by April of that year.
- Throughout 2019 and 2020, the price of Bitcoin Cash remained relatively stable, trading between $200 and $500.
- In late 2020 and early 2021, the price of Bitcoin Cash surged again, reaching a high of over $1,500 in February 2021.
Since then, the price of Bitcoin Cash has fluctuated between $200 and $500, with occasional spikes and dips. The current price of Bitcoin Cash is $468.53 with a 24-hour trading volume of $726,503,180.
What Is the All-Time High for Bitcoin Cash (BCH)?
The all-time high for Bitcoin Cash was $4,355.62 on 20 December 2017, and then dropped 88% to $519.12 on August 23, 2018.
What Is the All-time Low for Bitcoin Cash (BCH)?
The all-time low for Bitcoin Cash was its initial trading price of $240 USD on August 1, 2017.
What is the Market Cap of Bitcoin Cash (BCH)?
Currently, the market capitalization of Bitcoin Cash is $8,533,521,564 with a total supply of 21,000,000 coins.
Market caps are used as an indicator of the dominance and popularity of cryptocurrencies and are often considered the most important factor for ranking them.
How Does Bitcoin Cash (BCH) Work?
BCH is a proof-of-work blockchain network that operates similarly to BTC. However, BCH has a larger block size than BTC, which allows it to process more transactions per second and reduce transaction fees. BCH also supports smart contracts and applications, such as CashShuffle and CashFusion, which are two popular applications within the Bitcoin Cash ecosystem.
Bitcoin vs. Bitcoin Cash
So, what is the difference between Bitcoin and Bitcoin Cash? Bitcoin Cash can support 25,000 transactions per block, whereas Bitcoin can only support 1,000 to 1,500 transactions per block. Bitcoin is the best-known and most widely used cryptocurrency, with a market capitalization that far exceeds that of any other cryptocurrency. Bitcoin is often regarded as a store of value and an inflation hedge, whereas Bitcoin Cash is intended to function as a cost-effective payment system, similar to Bitcoin's original design.
How and Where to Buy Bitcoin Cash?
Bitcoin Cash can be purchased on several cryptocurrency exchanges, including Binance, Coinbase, Kraken, and Bitfinex. To purchase Bitcoin Cash, you must first create an account, complete the KYC process, deposit funds, and then execute a market order for Bitcoin Cash.
How do I sell Bitcoin Cash coins?
To sell Bitcoin Cash, you need to transfer it to a cryptocurrency exchange that facilitates BCH trading. Once you have transferred your Bitcoin Cash to the exchange, you can sell it for another cryptocurrency or fiat currency.
Is Bitcoin Cash Coin Legit?
Bitcoin Cash is a legitimate cryptocurrency with a strong community, a valid use case, and widespread acceptance. While there are risks associated with investing in any cryptocurrency, Bitcoin Cash has proven to be a reliable and trustworthy currency for those who understand the risks and take steps to protect themselves.
What Makes Bitcoin Cash Unique?
Bitcoin Cash is designed to be a transactional cryptocurrency that operates as an electronic cash payment system, in contrast to bitcoin, which is commonly regarded as digital gold or a store of value. One of the main differences between Bitcoin and Bitcoin Cash is the block size. While Bitcoin maintains its 1MB block size, Bitcoin Cash has increased its block size to 32MB, enabling faster and more cost-effective transactions. Bitcoin Cash also supports smart contracts and applications like CashShuffle and CashFusion. Despite some controversy and vulnerabilities, the Bitcoin Cash network has achieved several significant milestones. For instance, it has recorded over 9,000 transactions per second and reportedly processed 16.4 million transactions in a single block during early 2021 on the platform's scaling test net.
How to Mine Bitcoin Cash?
- Buy mining equipment: Bitcoin Cash can be efficiently mined using ASIC mining machines. CPU or GPU cards can also be used, but the chances of receiving rewards are low, as the hashing power is relatively lower on these devices.
- Choose a mining pool: Mining pools are groups of miners who combine their computing power to increase the chances of mining a block and earning a reward. Joining a mining pool can increase the chance of earning a reward, but you will have to share the reward with other members of the pool.
- Download mining software that is compatible with your equipment and the mining pool chosen by you
- Configure your mining software: You will need to configure your mining software with the details of your mining pool, including the pool's address, port number, and your mining pool username and password.
- Start mining.
The profitability of mining BCH depends on electricity cost, the price of Bitcoin Cash, and the mining difficulty that changes over time; thus, it is important to stay up-to-date with changes in both the BCH network and crypto markets to maximize the return on investment (ROI).
However, it is also necessary to understand that mining Bitcoin Cash is a financial risk because purchasing mining equipment can have no return as an investment because of many factors that cannot be controlled or often even taken into account.
How to Keep Your Bitcoin Cash Safe?
To keep your Bitcoin Cash safe, you should store it in a secure wallet to which only you have access. There are two main options for this purpose.
- Cold storage: Cold storage or offline wallets are among the safest methods of holding Bitcoin Cash, as these wallets are not accessible via the Internet. Those interested in the most secure storage should consider using a non-custodial cold hardware wallet for all their long-term Bitcoin Cash and cryptocurrency storage. Cold storage can protect digital assets by taking them offline and storing their cryptos in a digital wallet. Because these digital wallets are not connected to the internet, they are less vulnerable to hacking.
- Hot wallets: Hot wallets are still useful to some users. However, you should only keep what you intend to use in your hot wallet. Once you have completed your transaction, you move your crypto back into cold storage. .
Back up your entire Bitcoin Cash wallet early and often. In the event of computer failure, a history of regular backups may be the only way to recover the currency in the digital wallet. Ensure that all wallet. dat files are included, and then store the backup in multiple secure locations (such as a USB disk, CD, or other removable devices).
Pros and Cons of Bitcoin Cash
| Pros | Cons |
| Faster and less expensive transactions |
Weaker security than Bitcoin |
| More scalable than Bitcoin |
Environmental impact due to high energy consumption for mining activities |
| Decentralized currency system |
Branding trouble due to its name being similar to Bitcoin |
| Available on most major cryptocurrency exchanges |
Lower popularity than Bitcoin |
| Lower transaction fees |
Liquidity and real-world usability may be lower than Bitcoin |
Summary
Bitcoin Cash is a hard fork of Bitcoin that aims to address some of the limitations of the original protocol. While it has faced some challenges and controversy, it has shown great promise and potential for the future. With its solid technical foundation and potential for widespread use, Bitcoin Cash could continue to grow and evolve in the coming years. As with any investment, it is important to do your own research and consult a financial advisor before making any decisions.
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