Bitcoin Cash (BCH) was officially launched on August 1, 2017. It emerged from a very disputed hard fork from the legacy Bitcoin blockchain. It was designed to work like electronic cash and allow for faster and cheaper transactions than its predecessor. The disagreement stemmed from debates within the Bitcoin community regarding how to scale the network to handle increasing transaction volumes. At the time, one side wanted to scale off the chain, using the recently developed Lightning Network, for example, while another simply wanted to increase the size of the blocks on the main chain. The vision of the latter group gave birth to Bitcoin Cash, which had a larger block size limit for better scalability.
Bitcoin Cash was created not by one individual but rather by a group of developers, miners, and Bitcoin enthusiasts. Its most outspoken proponent is Roger Ver, an early Bitcoin investor often referred to as the “Bitcoin Jesus.” Ver has been one of the most proponents of Bitcoin Cash, citing the fact that it’s more faithful to Bitcoin’s original vision, as described in Satoshi Nakamoto’s whitepaper.
Bitcoin Cash is designed to handle significantly more transactions per second compared to Bitcoin. While Bitcoin’s 1 MB block size limits its throughput to around 7 transactions per second, Bitcoin Cash initially increased the block size to 8 MB and later to 32 MB. This enhancement allows Bitcoin Cash to handle up to 200 transactions per second (TPS) under ideal conditions, with real-world performance being dependent on network activity.
Similar to Bitcoin, Bitcoin Cash also applies the Proof of Work (PoW) consensus algorithm. In this mechanism, the process of solving complex cryptography puzzles is required by the miners to validate transactions and add new blocks to the blockchain.
Miners compete to solve computational puzzles using substantial processing power in the Bitcoin Cash network. The first miner who solves the puzzle adds the block to the chain and is rewarded in BCH. This whole process secures the network, ensures the validity of transactions, and controls the new issuance of coins. Interestingly, Bitcoin Cash utilizes the SHA-256 hashing algorithm, just like Bitcoin, which allows miners to switch between the two networks depending on profitability.
Bitcoin Cash has consistently evolved through technological advancements and strategic collaborations. BCH has been widely adopted among merchants worldwide due to its low transaction fees and fasteer confirmation times. More e-commerce, travel, and retail companies start to accept Bitcoin Cash for their businesses. It has also experienced some upgrades on the network, including Schnorr signatures, which have greatly improved privacy and efficiency; this technology allows multiple signatures to be aggregated into one, reducing data storage requirements and improving transaction speed.
Bitcoin Cash has also gained traction among institutions and governments. For instance, the state of Colorado in the United States started accepting BCH for tax payments in 2022, which was considered a big step toward mainstream adoption.
In recent times, Bitcoin Cash has partnered with payment processors like BitPay and Coinbase Commerce. This partnership has improved BCH’s accessibility and usability significantly. The collaborations have also enabled seamless integration for merchants, either online or offline, by providing a smooth experience for users transacting with BCH. BitPay allows businesses to accept Bitcoin Cash seamlessly through their platforms, while Coinbase Commerce facilitates BCH payments for e-commerce stores worldwide. These partnerships have solidified Bitcoin Cash’s reputation as a practical and scalable payment solution.
Bitcoin Cash’s market performance reflects its position as one of the leading cryptocurrencies. The toke is currently trading at approximately $532.50 as of December 13, 2024. Over the last month, BCH has gained 19.96%, indicating growing investor confidence and market momentum. Price movements in Bitcoin Cash are influenced by the positive developments, such as increased merchant adoption and network upgrades, which contribute to bullish sentiment, the adoption by institutions and regulatory clarity, and recent Bitcoin’s performance. Bitcoin Cash remains one of the leading cryptocurrency with a focus on scalability and usability for everyday transactions.
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FAQs
Q1: What distinguishes Bitcoin Cash from Bitcoin?
- A: Bitcoin Cash differentiates itself by offering larger block sizes, enabling faster and cheaper transactions, making it more suitable for everyday use compared to Bitcoin’s focus as a store of value.
Q2: How can I purchase Bitcoin Cash?
- A: Bitcoin Cash can be purchased on various cryptocurrency exchanges such as Coinbase, Binance, and Kraken. Users need to create an account, verify their identity, deposit funds, and then proceed to buy BCH.
Q3: Is Bitcoin Cash a good investment?
- A: Investing in Bitcoin Cash, like other cryptocurrencies, carries risks due to market volatility. Potential investors should conduct thorough research and consider their risk tolerance before investing.
Q4: What wallets support Bitcoin Cash?
- A:Several wallets support Bitcoin Cash, including hardware wallets like Ledger and Trezor, as well as software wallets like Exodus and Electron Cash. It’s essential to choose a wallet that aligns with your security preferences and usability needs.