What are the characteristics of Bitcoin Cash?
As the name itself indicates, Bitcoin Cash was created as “hard fork” of Bitcoin. The purpose of the hard fork was to enable faster and cheaper transactions compared to Bitcoin, while using the blockchain technology. To achieve this purpose, Bitcoin Cash incorporated certain improvements which are supposed to bring this cryptocurrency closer to being used as a real payment tool.
Transactions, similarly to Bitcoin, are logged in blocks which are then ordered in a blockchain. But a block here is created every 10 minutes and has a capacity of 8MB, which allows to Bitcoin Cash network to carry out multiple transactions in a shorter amount of time (a matter of seconds) than Bitcoin network can. Bitcoin transactions take several minutes or several dozen minutes.
History of Bitcoin Cash
The split from the Bitcoin blockchain took place on August 1, 2017. The reason for the split was the dissatisfaction of a smaller but influential part of the bitcoin community with the slow nature of transaction processing and high Bitcoin fees at a time of its biggest peak when it comes to prices and transactions. For this reason, a part of the community came up with a solution which made it possible for multiple transactions to be verified within one block. Despite critical voices which could be heard in 2017, Bitcoin Cash proved successful and became one of the prominent cryptocurrencies, representing an interesting alternative to Bitcoin. Currently it is among the TOP 5 cryptocurrencies in regard to market capitalization.
On what principle does it operate?
The ecosystem is formed by users and miners.
Carry out classic transactions by using their wallets. From a user’s point of view, it is the same principle as electronic banking – you receive and send amounts to generated addresses. If you’re sending Bitcoin Cash or its part (for example, 2.35 or 0.05 Bitcoin Cash), you will simply send it from your online or desktop wallet – or a hardware wallet – to the address given to you by the recepient. And vice versa if you want to receive Bitcoin Cash from someone, you simply give them the address of your wallet. The wallet’s address thus serves as the „account number“. Since the transactions are recorded in a public blockchain, they are visible, which means that similarly to Bitcoin or Litecoin, they are not entirely anonymous. However, a unique address may be generated for each transaction, which makes it impossible for your transaction history as a whole to be traced.
Represent an imporant link because their computing capacity ensures the operation of the network as a whole. With their equipment, they carry out energetically demanding computations which are supposed to prevent any misuse of the network. In this regard, Bitcoin Cash is based on the so-called proof-of-work. Miners receive the transaction fees and newly mined units of this cryptocurrency are distributed among them.
Comparison of Bitcoin Cash vs. Bitcoin
Bitcoin Cash offers faster transactions due to a larger block size (8MB) and lower fees for transactions. Unlike Bitcoin, there is a much higher centralization of miners (a large part of them is located in China; it was the Chinese who stood behind the split from Bitcoin). This can represent a risk of the three largest pools of miners connecting and carrying out of a 51% attack on the network, which is not a threat for Bitcoin because it has a much larger decentralization of miners and their overall number is higher as well. That means that the potential attacker would have to have a much larger computing power at his disposal in order to disrupt the Bitcoin blockchain. Bitcoin is also used much more for trading in conjunction with other cryptocurrencies, and this represents a huge advantage.
On the other hand, the higher rate of centralization is to some degree advantageous as well because the cryptocurrency develops at a much higher speed and the development is more organized than if it was left to the community only.
Number of Bitcoin Cash coins
The total number of coins is 21,000,000, which is the same as Bitcoin. At present, a little over 18,100,000 coins have been mined. Coins are divisible, similarly to Bitcoin, into a maximum of 8 decimal spaces. This means you can purchase for example 5,635 Bitcoin Cash. The currency’s abbreviation is BCH.
All time high – 4 355,62 USD (20th of December 2017).
Bitcoin Cash counts among the most widely spread cryptocurrencies. Each cryptocurrency exchange sells Bitcoin Cash. If you’d like to purchase Bitcoin Cash or its part, we recommend Coinmate where you can purchase Bitcoin Cash directly in exchange for FIAT currencies. You can also buy Bitcoin Cash at the Binance cryptocurrency exchange with a credit card or by exchanging it for a different cryptocurrency.
Since Bitcoin Cash is the most widespread cryptocurrency in the world, it is fully supported by all available hardware wallets.