What is Bitcoin Cash? BCH explainedNovember 15, 2019
In today’s modern era, even currencies are turned into digital nature. Individuals have been exposed to the realm of cryptocurrencies, bitcoins, digital wallets, and more. Another name that is now creating fuzz in many parts of the world is bitcoin cash. There are instances that bitcoin is mistaken as bitcoin cash and that the two are the same, but individuals should realize the distinctions between bitcoin and bitcoin cash. It also pays to understand the unique features that set each other apart.
Differentiating Bitcoin and Bitcoin Cash
There have been so many questions that surround the ability of bitcoin and bitcoin cash. There are also individuals who are confused and tend to ask themselves if bitcoin and bitcoin cash is the same. Read on to know the differences between the two.
What’s Bitcoin? What‘s Bitcoin Cash Really?
As proposed by Satoshi Nakamoto, a known bitcoin inventor, bitcoin is intended as a peer to peer cryptocurrency used in day to day transactions. Through the years, bitcoin has evolved and become an important investment vehicle rather than currency. Bitcoin is a decentralized electronic cash system that doesn’t rely on a central authority, such as a financial institution or government entity. Transactions are all recorded on global public ledger known as blockchain.
Bitcoin cash, on the other hand, is a type of cryptocurrency created in 2017, particularly in August from fork of bitcoin. This increases blocks’ size paving the way for more transactions being processed. Bitcoin Cash, shortly known as BCH is the altcoin version of the famous bitcoin cryptocurrency. The bitcoin cash is actually the outcome of hard fork in the modern technology of blockchain. One important change from bitcoin to bitcoin cash is the coin’s size.
Before, the 1MB limitation of bitcoin has been responsible for the delayed transactions. Bitcoin cash plays a part in increasing the block size to potentially pave the way for more transactions and support cryptocurrency grow as this competes with various old-style cryptocurrency platforms.
Upon its creation, the bitcoin cash instantly turned out to be the third most successful cryptocurrency following Ethereum and Bitcoin. Though bitcoin cash got a higher transaction rate, currency isn’t accepted in numerous places, just like Ethereum and Bitcoin. Conflicts and divergences existing within the developer community result in bitcoin cash being promoted to be like some investment tool instead of currency for transactions.
In 2018, creators of bitcoin cash came up with an important decision that one more hard fork is needed, so bitcoin cash was divided into two. Forking is a known outcome of deadlock in projects that are open source in nature being so overwhelming that all works tend to stop automatically.
This normally takes place when the members of the development team are not capable of resolving personal conflicts. It could also be that they fail to reach consensus regarding the next steps. In this fork, a group of developers felt the need for limiting the block size to 32MB. Another group put in a version of competing software, which increases the block size into 128 MB.
Bitcoin cash is known to trade mainly on digital currency interactions, which include open-source Gemini, Kraken, Bistamp, Coin base, and the ShapeShift utilizing BCH as symbol and Bitcoin Cash name.
Media exchanges and outlets refer to Bitcoin cash when they are talking about bitcoin on major discussion channels. However, one thing remains clear, that the excitement, spirit, and the revolutionary concept of digital currency is alive and goes along well with the bitcoin cash.
It is highly suggested to research, read, and search some more prior to making opinions about bitcoin cash. Take time to understand arguments and think critically then draw the right conclusion. All in all, electronic cash is considered a very useful tool towards better economic freedom and bitcoin cash can definitely take people there.
If you wish to learn more about bitcoin cash and many other aspects link to it, there are numerous sources online that can give you the information that you need. If you learn more about bitcoin cash, you will surely understand and appreciate its value.
As time passes by, more and more individuals are expected to learn about bitcoin cash and will be encouraged to use this. Bitcoin cash has indeed proven its worth in the digital currency world and continues to captivate the interest and attention of more individuals.