Do you know what is Bitcoin Cash (BCH)? Have you ever read about Bitcoin Cash as a real cryptocurrency? Today’s article will discuss the Bitcoin Cash emergence and clarify the difference, which distinguishes Bitcoin Cash from its older brother – Bitcoin currency.
On August 1st, 2017, some programmers and traders initiated a hard fork, independently from the Bitcoin blockchain, announcing the birth of a new cryptocurrency, called Bitcoin Cash (BCH), which quickly becomes a developing digital asset with a vast number of transactions.
However, many users had serious concerns about the nascent technology. They frequently ask, “What is the expected price of Bitcoin Cash? Can we invest in this currency? What are the expert opinions about Bitcoin Cash?” In today’s article, we will answer all of these questions, so without any further delay, let’s begin by stating some differences between BTC and BCH.
When Was Bitcoin Cash Created?
The virtual currency was created in 2017 by some active Bitcoin traders, developers, and China-based miners.
What Are The Differences Between Bitcoin (BTC) & Bitcoin Cash (BCH)?
No one denies that Bitcoin (BTC) is the king of all cryptocurrencies – that makes the digital payment method significantly different from the newer Bitcoin Cash. In the table below, we compare the characteristics of the two virtual currencies in order to detect the strengths and shortcomings of each one:
The Indicator
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
Creation Date
- BTC: January 3rd, 2009
- BCH: August 1st, 2017
Current Value (As Of August 26th, 2021)
- BTC: $47,096
- BCH: $620
Market Capitalization (As Of August 26th, 2021)
- BTC: $885,310,917,861
- BCH: $11,655,940,305
Volume Of Currency In Circulation (As Of August 26th, 2021)
- BTC: 18,797,893
- BCH: 18,828,231
Maximum Volume
- BTC: 21 million
- BCH: 21 million
Let’s Get Back To The Initial Stage
Before August 1st, 2017, Bitcoin Cash (BCH) simply did not exist. The new cryptocurrency emerged in a discussion among the Bitcoin blockchain community members; what was the essence of the debate?
Starting with the cryptocurrency scalability issue, users handled the transactions problems, which arise from time to time on the blockchain network. They created a hard fork literally, as a division, emanating from the Bitcoin main blockchain to cut the pear in half.
On the one hand, Bitcoin wants to use SegWit in order to separate signature information from transaction data. Thus, the transaction space in a block can be optimally distributed so that a single block can include a larger number of transactions.
On the other hand, Bitcoin Cash tends to increase transaction blocks to consolidate more transactions directly. Bitcoin had 1 MB blocks, while Bitcoin Cash block size has increased from 8MB to 32MB.
Note that Bitcoin Cash, like Bitcoin, experiences a block reward halving every 210,000 blocks. The latest halving to date is that of April 8th, 2020, at block 630,000.
What Are Bitcoin SV Bitcoin ABC?
Bitcoin SV and Bitcoin ABC are both cryptocurrencies and blockchains resulting from Bitcoin Cash hard fork, which emerged from Bitcoin hard fork.
Different Functioning
What Is Bitcoin Cash (BCH), and why is it distinctive? Essentially, Bitcoin Cash (BCH) uses the same underlying blockchain technology as Bitcoin. The decentralized network, initially introduced by Satoshi Nakamoto in 2008, comprises numerous nodes, which contain a copy of all transactions history. Each transaction carried out on the blockchain network will thus be validated before being registered on the transaction block.
Therefore, the Bitcoin Cash blockchain works similarly to its older brother, Bitcoin currency. Look at the following example:
- Mr. Smith wishes to send a sum to Mr. Oliver.
- It issues a transaction for a given amount.
- All users on the blockchain verify that Mr. Smith actually owns this given amount.
- They validate the transaction, entering it in a block.
- The transaction is collected in a block by the Bitcoin Cash miners.
- Mr. Oliver receives the requested sum.
What Is Bitcoin Cash (BCH), And How Is It Mined?
If we discuss mining, we can find that Bitcoin Cash mining is different from that of Bitcoin. Any new block creation in the Bitcoin network is considered extremely expensive. There is a reward provided for the miners who manage to secure the network. They indeed receive tokens fragments when they detect transaction fraud.
Bitcoin Cash actually has lower expenses since it is still relatively affordable for investors who are new to the world of cryptocurrency. The only deficiency is that there is no real tool for forecasting Bitcoin Cash value, which remains a very volatile asset. However, many enthusiasts still trade on forums, platforms, and social networks such as Reddit.
Is Investing In Bitcoin Cash A Good Idea?
Whether you decide to invest in BCH or another cryptocurrency, it will always be your choice after making sure to do your own due diligence. However, we believe BCH is a good investment, the same as the current top cryptocurrencies, such as Ethereum, Bitcoin, Cardano, BNB, etc. Obviously, Bitcoin Cash will allow you, as a new trader, to:
- Send and receive BCH in a peer-to-peer marketplace without a mediator, with minimal transaction fees, and with the ability to manage your own funds.
- Use your BCH as a means of payment, although very few companies are willing to accept Bitcoin Cash due to its novelty status.
- Buying Bitcoin Cash as part of a profitable investment: buying tokens and reselling them at the right time is the best way to achieve capital gains.
Advantages & Disadvantages
Regarding advantages, we note that Bitcoin cash enjoys:
- Low-cost transactions,
- Easy, reliable, and fluid network,
- Encrypted blockchain technology, which has already been tested,
- A potential increase in value.
- A lower price than Bitcoin, this is quite suitable for new investors.
- On the other hand, being a relatively recent cryptocurrency, Bitcoin Cash has certain drawbacks. There are apparent shortcomings in its regulations, while transaction speeds are somewhat unstable. Finally, like all cryptocurrencies, Bitcoin Cash’s price is highly volatile, and experts recommend investing amounts that you can afford to lose.
How To Buy Bitcoin Cash?
First, you should open or buy a virtual wallet before purchasing Bitcoin Cash tokens. This wallet allows you to keep your crypto assets safely via an online platform. Subsequently, to buy BCH directly, several options are available:
- Users and traders previously holding BCH via online platforms,
- Direct purchase through a broker,
- Bitcoin Cash mining.
The most common option is buying Bitcoin Cash as a currency exchange. Many online brokers and various platforms like Binance, Coinhouse, BTCDirect, and Coinbase facilitate the purchasing process and protect your personal and financial data.
What Is The Best Platform To Buy Bitcoin Cash From?
There are many websites where you can buy, hold, trade, or sell cryptocurrencies. In the United States of America, Coinhouse is a primary source. Coinbase and eToro are also good providers.
How To Buy Services And Products Using Bitcoin Cash Cryptocurrency?
Be aware that all digital transactions should have an intermediary, and secure platforms receive a commission on every financial transaction made.
What Is Bitcoin Cash (BCH)? Final Thought
Finally, after going through all this information about BCH, you have a clear idea of what BCH is. Although this coin is not as strong as BTC, we still believe BCH has a strong future along with other cryptocurrencies such as Cardano. Investing in cryptocurrencies needs a lot of reading and firm due diligence from your side. But you should most unquestionably consider BCH in your research.
Investing in stocks, cryptocurrencies, and other Initial Coin Offerings (“ICOs”) is highly risky and speculative. This article is not a recommendation by iCryptoApe or the writer to invest in stocks, cryptocurrencies, or other ICOs. Because each person or individual’s circumstances are unique, therefore, a qualified professional and/or a financial advisor should always be consulted before making any financial decisions and/or trading or buying stocks, cryptocurrencies, or other ICOs. iCryptoApe makes no representations or guarantees as to the accuracy or timeliness of the information included within.
