What is Bitcoin Cash (BCH)?
Bitcoin is the father of the cryptocurrency world and many people believe in this project. However, it has many disadvantages. The development team can solve them, but with one stipulation: they have to ignore some principles of the system.
As they didn’t want to do this, some groups formed a great opposition and began their work on the BTC hard-fork. As a result, Bitcoin Cash appeared. During its creation, all forums were full of questions like: What is Bitcoin Cash? What benefits could it provide? Will it dethrone Bitcoin?
Today, BCH has been in existence for 2.5 years and many cryptocurrency users know almost everything about it. However, if you are new to this market, you may know nothing. Therefore, we will tell you the most important and genuine information about this asset.
What does Bitcoin Cash mean?
Similar to Bitcoin, Bitcoin Cash is a decentralized p2p payment system. There is one important difference: Bitcoin was created from 0, while BCH is a hard-fork. This means significant changes to the cryptocurrency code, the result of which is that the old and new versions of the blockchain cannot exist in one system. This is why Bitcoin Cash was created on the basis of Bitcoin.
There were 8 forks for Bitcoin. BCH is the most successful among all of them.
Forks are thus a usual phenomenon in cryptocurrency. However, 90% of the community agreed to this change. Bitcoin Cash appeared because one group of developers had an idea for improving BTC, while the other group was against these ideas.
The Bitcoin community was enormous at the time, so the idea that every person would quit the old network and move to the new one was simply impossible. As there are many disagreements in the cryptocurrency community, BTC and BCH exist in parallel.
Who created BCH?
Amaury Setchet is the main developer of Bitcoin Cash. A most interesting fact is that he did not come up with the idea of the hard-fork himself. He actually got such a concept from one of the members of the Bitmain team. When he received a grant from the Bitcoin Development team, he began doing his research. Before entering the cryptocurrency world, Amaury was a member of the Facebook development team, but he was deep into digital currency.
Jian Wu is a co-founder of Bitmain and one of the most famous supporters of the Bitcoin Cash idea. Some say that Jian Wu told Amaury to begin his work on BCH. Jian provided the first hashrate for BCH mining.
Amaury worked with a group of people from the Bitcoin Development team who wanted to change the BTC blockchain. They helped him with many issues that were connected to cryptocurrency. Moreover, one of them was the owner of the idea to increase the block size.
When was it launched?
Bitcoin Cash was launched on the 1st of August 2017. However, development began long before the launch, in spring 2017, when Bitcoin began encountering more and more issues. There was the soft fork SegWit, but it didn’t solve the problem.
1 August 2017
Launch and sharp appearance in the top cryptocurrencies by capitalization.
2 August 2017
The value increased by 100%.
19 August 2017
The first BCH pump, price rose up to $1,000.
30 August 2017
Almost 1,500 blocks were found.
13 November 2017
The EDA algorithm was introduced. It solved some problems by changing the complexity of mining.
5 December 2017
Listing on Bitstamp.
19 December 2017
Listing on Coinbase.
20 December 2017
Reached its highest value - $4,091.
10 January 2018
Block Explorer switched from BTC to BCH.
Table 1. The main points of BCH’s evolution
How is Bitcoin Cash different from Bitcoin?
As previously mentioned, a hard-fork is the significant changes to cryptocurrency code. Bitcoin Cash thus has some similarities and differences from Bitcoin.
First of all, BCH emission is 21 million coins. New coins appear by mining, and it also uses the SHA-256 algorithm and Proof-of-Work protocol. The block time is 10 minutes.
The main difference is block size. Bitcoin has a permanent 1 MB, while BCH currently has 32 MB. When it was launched, the block size was only 8MB, but developers inserted the possibility of increasing it. Why? Simply because BTC transactions had become slower and more expensive because of its small block size.
EDA was the special feature of BCH for some months. It was designed to make mining difficulty corrections smoother. Within 3 months, it was removed. Why? One of the developers of EDA admitted that this technology was aimed at harming Bitcoin. With the help of this algorithm, BCH could take away computing power from the main network, which would lead to a periodic decrease in the Bitcoin blockchain.
How do you buy Bitcoin Cash?
Bitcoin Cash is in high demand, so it is easy enough to buy this cryptocurrency. There are several ways to buy BCH:
- cryptocurrency exchange platforms;
- Direct buy.
Exchanges provide the simplest way to buy BCH. Exchange platforms are the most secure way to buy BCH. Moreover, you can use an exchange as a wallet, so this method is comfortable enough. Choose one of trusted platforms (e.g. Kraken, Coinbase, StormGain), register there and follow the instructions.
Direct buy is the less popular way of buying. You have to find sellers on forums (e.g. bitcointalk), check out their reliability and reach an agreement about the transactions.
However, if your friend has BCH, you can ask him to sell you some coins. In this case, direct buy will be the best for you.
How do you trade BCH?
If you want to trade Bitcoin Cash, you have to create an account on an exchange like StormGain and deposit funds. Next, you have to make a trade. Just choose the desired cryptocurrency pair and click “Buy” or “Sell” depending on what you want to do.
However, this is only a physical component of trading. You have to learn technical analysis, understand the market, follow charts and create strategies in order to become a successful trader. How do you do this? Read our articles about cryptocurrency trading.
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