Bitcoin Cash is the hardfork of Bitcoin, which was created by a minority group of influential miners, developers, investors and users who opposed the agreed SegWit implementation of the scale.
Bitcoin Cash is a continuation of the Bitcoin project as a digital Cash peer-to-peer. Bitcoin lives on the original Satoshi code of 1 MB and at the same time explores new possibilities for scalability solutions outside the network.
When Bitcoin was divided into Bitcoin and Bitcoin Cash, someone who had 10 BTC automatically received a certain number of BCH (10) equal to the value of their 10 BTC.
Because bitcoin cash shares the same story with bitcoin, its applications are virtually the same. You can accept bitcoin cash as a payment or as part of the mines, but the easiest way to get bitcoin cash is to buy it from cryptocurrency brokers and exchanges.
Why Fork Bitcoin?
Bitcoin was divided to create Bitcoin Cash because some Bitcoin developers wanted to make important changes and upgrades which they saw as a drawback. Bitcoin cash was created by miners and developers equally interested in the future of cryptocurrency and its ability to scale effectively.
If bitcoin really undermines the decentralized nature of the network and the democratic possibilities of blockchain technology, people can look elsewhere for cryptocurrency with more exciting potential. Bitcoin cash was created by miners and developers who claimed to be interested in the future of Bitcoin and its ability to scale effectively.
Bitcoin vs Bitcoin Cash
The 8 – MB block limit for Bitcoin Cash is eight times the size of the 1 MB block for Bitcoin.
While Bitcoin’s Cash followers will be happy to identify larger blocks with cheaper and faster transactions, Bitcoin camp sees solutions as a better method of scale. It is very similar in many ways to Bitcoin ( BTC ), but Bitcoin Cash has some technical differences, which have a significant influence. Bitcoin and Bitcoin Cash are two completely separate cryptocurrencies, although both are based on the same open-source Bitcoin code.
Bitcoin Cash has a lower transfer fee ( approximately 0. 20 per transaction ), so doing business in BCH saves more money than using BTC. If the BTC is primarily used as a storage value – or as a tool for speculation – then the smaller mempool and lower transaction costs would not be a compelling reason to switch from BTC to BCH.
Note that atypical peaks in the BCH hash rate at the end of 2017 are similar to the times when BCH mining was disproportionately more profitable than BTC mining.
Bitcoin ( BTC ) supporters accused Bitcoin Cash ( BCH ) of attempting to hijack the original view of Satoshi’s real decentralized currency.
In turn, Bitcoin’s supporters accused Bitcoin developers of allowing BTC to become useless as a digital currency.
Bitcoin Cash has managed to carve out a niche in the cryptocurrency market and is currently ranked the sixth cryptocurrency in terms of market capitalization. Earlier, it was ranked number three after bitcoin and ethereum.
Although BCH remains relatively new, companies such as Bitpay see market value in Bitcoin Cash because of the ease of transaction usage.
Many speculate that Bitcoin Cash could absorb a large part of the market share of Bitcoin, making it the new dominant crypt in the industry. It’s because Bitcoin Cash has solved the scaling problems that Bitcoin has, allowing more people to use it with ease and lower costs. Many beginner investors see Bitcoin Cash as a cheaper Bitcoin with a lower entry point in the market. However, Bitcoin supporters see Bitcoin Cash as a no-value asset and a centralized cryptocurrency.
Bitcoin Cash Hardfork: Bitcoin ABC & Bitcoin SV
Bitcoin Cash went through a hard fork last year which gradually split the cryptocurrency into two: Bitcoin ABC and Bitcoin SV. Under the leadership of Amaury Sechet, and with close ( although unofficial ) ties with the major mining equipment manufacturer Bitmain, Bitcoin ABC has a hard-hitting policy about once every six months to upgrade the protocol. With Bitcoin ABC and Bitcoin SV as two leading rival factions, most of the Bitcoin’s Cash ecosystem has so far chosen a side in the dispute.
Most of the “big name” Bitcoin supporters seem to support ABC’s hard fork – or at least reject Craig Wright (Faketoshi) and Bitcoin SV.