What is Bitcoin Cash?
Although Bitcoin (BTC) delivered a stunning growth from the very beginning until its tremendous accelerated rise in 2017, critics always argued there were clear issues regarding its scalability. This led to the so called “Fork” on 1st August 2017, with Bitcoin Cash (trading symbol: BCH) coming out and setting its block size cap to 9 MB in order to improve and increase the amount of transactions its system was able to process.
After its launch, transactions of Bitcoin Cash inherited the history of BTC, but after the Fork all subsequent transactions were separate.
What is a Fork?
When a crypto currency (so far this has only happened to Bitcoin and related Bitcoin assets) increases its block size limit of 1 MB to 8 MB, the phenomenon is defined as “Hard Fork”.
Instead of creating a completely new crypto currency (alongside its related blockchain), a forks essentially create a duplicate blockchain that until its creation inherits the same history as its “Mother” coin, and subsequently separates its transactions.
When Bitcoin Cash came to light, whoever had Bitcoin (BTC) before the hard fork took place, also received the same amount of BCH. When a hard fork happens, generally the price of its original coin will drop significantly
to then steadily recover in the next few hours/days. You should always look out for any upcoming fork,
as this creates considerable volatility in the crypto currency market and offers important trading opportunities for those who follow the news.
Importance of Bitcoin Cash
Experts consider Bitcoin Cash of fundamental relevance, as it has saved Bitcoin from collapsing due to the high computer processing power
requested and the incredibly high interest received by the general public. At this time, BCH trades at almost $3000 and experts expect it
to reach $10,000 in the next 6 month. If this is true, BCH will shortly become the second biggest crypto currency in value,
definitely a split asset for a “buy and hold” trading strategy.
Is Bitcoin Cash better than Bitcoin
It would be incorrect to state that one version of Bitcoin is better than the other, however without any doubt,
it is clear that BCH is cheaper to use than Bitcoin (Core). This is particularly true because transaction fees for Bitcoin Core
are considerably more expensive, as its blocks are always full and there is a huge queue of investors in stand by. Therefore,
at the moment it costs more than $45 to generate a single Bitoin Transation (measured in satoshis-per-minute)
whereas in order to generate a BCH transaction, the cost less than $0.10.
Bitcoin Cash is not an AltCoin
In a market totally flooded by both legit and not so reputable alternative crypto currencies, it is important to say that Bitcoin Cash
is NOT an ALTCOIN. Bitcoin Cash is nothing less than Bitcoin, it was generated by a hard fork of Bitcoin Code and it shares the same
transactional technology and blockchain of its Core.
Critics to Bitcoin Cash
There are some big crypto investors who argue Bitcoin Cash should not exist, for clear and mere personal reasons.
Their agenda is to undermine BCH as alternative to Bitcoin Core. Generally, critics call Bitcoin Cash “BCash” hoping to diminish
rates and reputation of the currency. Please note that if your broker, exchange or wallet refers to Bitcoin Cash as “Bcash”,
this is probably done in order to confuse users and undermine its importance.
We would recommend to stay away from any organisation using this term to refer to BCH