Bitcoin Cash is a cryptocurrency that was created in August 2017 as a result of an ongoing controversy concerning Bitcoin scaling. The idea was to have a larger block size than Bitcoin, permitting more transactions to be stored in a single block.
Despite their conceptual differences, Bitcoin Cash and Bitcoin have a lot in common in terms of technology. They share the same consensus mechanism and a limited supply limit of 21 million coins. In November 2018, Bitcoin Cash was divided into two forks: Bitcoin Cash ABC and Bitcoin Cash SV (Satoshi Vision). “Bitcoin Cash” is the new name for Bitcoin Cash ABC.
Bitcoin/ Bitcoin Cash Controversy
Bitcoin was created with the intention of being a peer-to-peer cryptocurrency that could be used for everyday transactions. However, when it acquired popular acceptance and its price skyrocketed, it evolved into an investment tool rather than a currency.
Due to the growing quantity of transactions, Bitcoin fell into scalability concerns. As a result, the time it takes to complete a transaction also increased, as have its costs. Because Bitcoin’s 1MB block size limit could not handle the increase in transaction size, transactions were delayed, awaiting confirmation.
Bitcoin Cash seeks to fix the problem by raising block sizes between 8 and 32 megabytes, allowing more transactions to be processed per block. When Bitcoin Cash was proposed, the average number of transactions per block on Bitcoin was between 1,000 and 1,500. However, during a stress test in September 2018, the volume of transactions on Bitcoin Cash’s blockchain increased to 25,000 per block.
Who are the Founders of Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a fork of the most frequently used cryptocurrency, Bitcoin. It was created by a group of miners and developers who were fed up with squabbling over a scaling solution and chose to publish code that changed it, causing a hard fork.
In June 2017, the Bitcoin ABC software, which would later generate Bitcoin Cash, was initially revealed. After completing the testing period, the coin was launched to the general public on August 1, 2017.
Roger Ver is widely recognized as the most outspoken supporter of Bitcoin Cash. However, he did not establish Bitcoin Cash; instead, he allied with the project because he believed in the goal of this Bitcoin fork.
What is Bitcoin Cash Used For?
Bitcoin Cash is a transactional cryptocurrency that may be used to make electronic cash payments. The primary characteristics of Bitcoin Cash make it a long-term store of value and a highly effective medium of trade.
- Long-Term Store of Value
Bitcoin Cash’s total supply will never surpass 21 million coins. The Bitcoin Cash protocol’s code contains this information. However, because Bitcoin Cash is a decentralized network, users ultimately decide how the protocol evolves. Because it is not in the participants’ best interests to dilute their holdings by modifying the protocol, the 21-million-coin cap will almost certainly remain in place indefinitely.
According to a predetermined schedule encoded into the code, the rate at which new coins are issued to the circulating supply declines over time. For example, every four years, the issuance rate is reduced by half. As a result, Bitcoin Cash is a ‘deflationary’ asset.
- Highly Effective Medium of Exchange
Bitcoin Cash allows individuals to make payments to one another in the same way cash does but in the digital domain. Notably, transaction fees for transmitting Bitcoin Cash are often less than a penny, and settlement occurs almost instantly, regardless of the participants’ physical locations. This makes Bitcoin Cash suitable for everyday activities like grocery shopping and remittances, and cross-border trading. In addition, Bitcoin Cash is also ideal for micro-transactions such as tipping content creators and rewarding app users due to its cheap fees and transaction times.
- Economic Freedom
Individuals’ economic freedom is defined as their ability to obtain and use personal resources as they see fit, both individually and in collaboration with others. It is an essential aspect of human dignity and a fundamental human right. Money is a vital tool for facilitating economic freedom because it can store and exchange value.
Bitcoin Cash is an alternative form of money that supports economic liberty on an opt-in basis. Bitcoin Cash, unlike national currencies, contains built-in protections against (1) economic expropriation, (2) censorship, and (3) depreciation due to uncontrolled inflation.
What Are Bitcoin Cash’s Unique Features?
Bitcoin Cash is a peer-to-peer electronic cash system that is decentralized and does not rely on a central authority such as a government or financial institution. As a result, it reflects a radical rethinking of money’s core existence. The following are the main characteristics of Bitcoin Cash:
- Open to Anyone
Bitcoin Cash is not controlled or owned by anyone. You don’t need to obtain permission to utilize it because there is no CEO.
When it comes to BCH, identities are not tied to its transactions. This feature so helps to ensure that Bitcoin Cash remains free to be used by anyone, without censorship.
Identity is not tied to transactions. This makes it possible for anybody to utilize Bitcoin Cash without the worry of being restricted. All transactions are recorded on the blockchain, a worldwide public ledger. The ledger is updated in blocks that are joined to form a chain at regular intervals. This makes it simple for anyone to see the entire history of ownership, which reduces the risk of fraud.
A network of individuals known as ‘nodes’ stores the public ledger (blockchain) willingly. This contributes to the information’s long-term viability.
To reach a consensus on the ledger’s state, nodes follow a set of rules (a protocol)—the ‘truth’ about who owns what is determined by this consensus. On the other hand, the protocol can alter in response to participant requests; however, changes require a high level of agreement. As a result, Bitcoin Cash is a quasi-political system in which users construct a social contract.
How many Bitcoin Cash (BCH) are in Circulation?
The total amount of Bitcoin Cash is 21 million coins, which is the same as the total supply of Bitcoin. Bitcoin Cash presently has a circulating supply of just over 18.5 million coins, accounting for roughly 89% of the total supply.
Miners, like Bitcoin miners, serve as validators and are compensated for their computational power. Currently, each block adds 12.5 BCH to the circulation pool, bringing the total to 21 million.
Is the Bitcoin Cash (BCH) Network Secured?
There is no distinction between the security of Bitcoin’s network and the security of Bitcoin Cash’s network. Both networks follow the same set of guidelines and use the same consensus procedure.
Bitcoin Cash’s security is based on the structure of the proof-of-work algorithm and a group of miners that use it to verify transactions.
How Do I Buy Bitcoin Cash (BCH)?
A broker exchange is the simplest way to do this. Indexpairs.com is the most popular of these, as it is ideal for novices. In addition, Bitcoin Cash can be purchased with fiat currency using a credit/debit card or a bank account.
Which Cryptocurrency Wallet Supports Bitcoin Cash (BCH)?
The PTPWallet platform supports many cryptocurrencies simultaneously such as Bitcoin Cash. Because of its vast use case, it has grown to become one of the most used platforms as it serves as an exchange and an engine to discover other cryptocurrencies. Additionally, users can easily use PTPWallet as their Bitcoin Cash wallet because offers a simple and interactive interface making it easy for people to navigate its system.