Bitcoin cash (BCH) is having a lot of similarities to bitcoin. August 1st, 2017 is the inception of Bitcoin Cash, the day it forked from Bitcoin. A split in the blockchain is a hard fork. Up until August 1st, 2017, Bitcoin Cash and bitcoin, therefore, shared the same transaction history, but are now completely separate.
The result of a discussion in the crypto community on the subject of scalability is the hard fork which created bitcoin cash. Bitcoin’s struggle to process the large number of transactions on the Bitcoin network is concerned by the scaling problem.
The community was divided into two by looking for a sustainable solution. A hard fork was implemented as it was unable to find a compromise:
- Bitcoin Cash believes the scaling problem will be solved by larger transaction blocks. Transactions will be processed faster When more transactions fit into one block. 1MB is the block size of bitcoin, which Bitcoin cash initially increased the block size to 8MB. But the block size has increased more so since May 15, 2018. 32MB is the current block size. The biggest fundamental difference between Bitcoin and Bitcoin Cash is this.
- Bitcoin recognizes SegWit as a solution. A technique to separate the signature information from the transaction block is SegWit. The space of the transaction blocks is distributed more efficiently, As a result, and therefore more transactions fit in one block. For applications such as the Lightning Network and Atomic Swaps, SegWit also clears the way.
Is Bitcoin Cash cheaper to use than Bitcoin Core?
In short: yes. For the inception of Bitcoin Cash, the ever-rising fees associated with Bitcoin transactions were one of the main reasons. In December 2017, A very hands-on test conducted showed that a Bitcoin Cash transaction was 99.56 per cent cheaper than the equivalent transaction on the original Bitcoin network.
At the very end of 2017, to move their Bitcoin tokens, people were paying $28 on average in transaction fees. Somebody has even claimed that to send $25 worth of Bitcoin, which is a 40 per cent commission, they had to pay a $16 fee.
Should I invest in Bitcoin Cash?
Bitcoin Cash has already established itself as an extremely strong cryptocurrency even if it hasn’t been around for very long. At the time of writing, behind the industry stalwarts Bitcoin, Ethereum and Ripple, it’s the world’s fourth cryptocurrency in terms of market capitalization. As of Jan. 22, 2018, it’s also the world’s second most valued cryptocurrency at $1,623 for one BCH.
Bitcoin Cash became an answer to everything that was wrong with the original Bitcoin to many people and it keeps getting new followers day by day. You should conduct your own research when making a decision, as generally, every investment and trading move involves risk.
How do you get bitcoin cash?
Now you know what bitcoin cash is and what you can do with it. But where can you get it? There are several ways to acquire bitcoin cash after you’ve created a wallet in which you can manage your bitcoin cash:
- Purchase bitcoin cash through a broker or an exchange
- Accept bitcoin cash as payment for your goods or services
- Receive (part of) your salary in bitcoin cash
- Start mining bitcoin cash
- Purchasing bitcoin cash
Even without an intermediary, you can send and receive bitcoin cash. However, you can make use of a cryptocurrency broker like BTC Direct, if you wish to exchange euros for bitcoin cash. You can pay by using a payment card or bank transfer, after which the bitcoin cash is sent to your wallet.
Accepting bitcoin cash
Bitcoin cash is formulated as a payment system. This means when you provide goods or services, it’s possible to accept bitcoin cash. The speed of a transaction is a great advantage: you will receive bitcoin cash in your digital wallet instantly if someone pays in it.
Bitcoin cash salary
BTC Direct employees receive part of their salary in bitcoin from June 2018. The employees are given the opportunity to choose how much of their salary they want to receive in bitcoin. BTC Direct buys the coins at the current price and sends them to the employees’ digital wallets at the end of the month. This service could also be applicable to bitcoin cash for sure.
Mining bitcoin cash
Mining is a more technical way to obtain bitcoin cash. Your computer verifies new transactions and collects them in a transaction block if you mine bitcoin cash. This way you help maintain the bitcoin cash blockchain, and you get paid in bitcoin cash as a reward. A lot of time and effort is necessary for Mining bitcoin cash. You will have to invest in the right technical equipment and it requires extensive knowledge about how the network works.
How can I use Bitcoin Cash?
You can now send, receive, buy and sell the cryptocurrency as Many cryptocurrency exchanges have now taken steps to integrate Bitcoin Cash.
As Bitcoin Cash continues to grow, it’s quite possible that merchants will begin to follow suit. However, Bitcoin Cash isn’t accepted by the absolute majority of vendors, as of now, even those that do accept the original Bitcoin.