EDUSELL
Financial Market Examiner
Midas Crypto Vault
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
Financial Market Examiner
No Result
View All Result
Home Education

What is Bitcoin Cash (BCH)?

Admin by Admin
March 8, 2023
in Education
0
Signature Bank Closure Has Nothing To Do With Crypto
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter
MMC MMC

Bitcoin Cash is a cryptocurrency whose payments are sent directly from one person to another. This makes it one of the fastest-growing cryptocurrency today.

Although Bitcoin Cash (BCH) has some similarities with Bitcoin (BTC), it is created to solve one of the shortcomings of the later.

In this article, we’ll learn about Bitcoin Cash and its investment opportunities in detail. Let’s get right into it.

What is Bitcoin Cash?

Bitcoin Cash is a peer-to-peer electronic cash system that aims to become sound global money with fast payments, micro fees, privacy, and high transaction capacity (big blocks). In the same way that physical money, such as a dollar bill, is handed directly to the person being paid, Bitcoin Cash payments are sent directly from one person to another.

As a permissionless, decentralized cryptocurrency, Bitcoin Cash requires no trusted third parties and no central bank. Unlike traditional fiat money, Bitcoin Cash does not depend on monetary middlemen such as banks and payment processors. Transactions cannot be censored by governments or other centralized corporations. Similarly, funds cannot be seized or frozen — because financial third parties have no control over the Bitcoin Cash network.

Bitcoin Cash (BCH) is an alternative to the oldest and most traded cryptocurrency – Bitcoin (BTC), only the BCH network is much faster and cheaper. In 2017, BCH developers modified the BTC code, releasing their own version of the software and a full-fledged competitive product, which split Bitcoin into two blockchains: Bitcoin / Bitcoin Cash, and consecutively, two assets – BTC / BCH. Bitcoin Cash is a clear result of a hard fork in blockchain. Moreover, another hard fork, which divided Bitcoin Cash into two parts: Bitcoin ABC and Bitcoin SV, took place in the fall of 2018.

There are several distinctive features that separate BCH from the origin. The main one remains about the block size. Blocks in the BCH blockchain can be larger, which means that more transactions can be processed at a time, so that the additional space helps to avoid higher fees. However, since the potential block size is larger, storage & audit become more costly and users may find it troublesome to download a copy of the blockchain.

From the technical perspective, BCH is very similar to the Bitcoin algorithm, namely: both projects have a hard cap of 21 million coins, and also use Proof-of-Work (PoW) consensus framework and nodes to verify transactions. Thus, traders can consider BCH as a hedging tool, investing in which may save them some risk.

On the plus side, due to the larger block size, Bitcoin Cash (BCH) works faster and has lower transaction fees, which makes BCH a better option for small everyday transactions. Furthermore, Bitcoin Cash supports smart contracts and ecosystem apps like CashShuffle, a coin mixing protocol, and CashFusion, a privacy-enhancing solution for the Bitcoin Cash network. These technologies have their pros and cons: thanks to CashFusion, it becomes extremely difficult to trace the path to the user’s assets, however one should bear in mind that commissions are charged for each mixing, so making frequent mixed transactions may have a cost.

It provides a platform for Peer-to-Peer (P2P) payments between individuals, with the average transfer fee being as low as $0.01, and the settlement is instant. This means that Bitcoin Cash is suitable for money transfers, international trade, everyday transactions and microtransactions. In addition, Bitcoin Cash supports economic freedoms by providing an alternative form of money, protected against confiscation, any other forms of censorship and devaluation (due to inflation).

Bitcoin Cash is a decentralized network where users influence the development of the protocol.

What Makes Bitcoin Cash (BCH) Unique?

1. Transactions are recorded on the blockchain, and the ledger is updated at regular intervals, which allows users to track the history of ownership and eliminate fraud threats promptly.

2. Bitcoin Cash is an open network that can be used by anyone for free and uncensored, identities are not attached to transactions.
3. Nodes that follow a set of rules (aka protocol) are responsible for the longevity of stored information. The protocol itself can be upgraded with the help of ecosystem participants, but that requires a high degree of consensus among them.

4. All transactions that have ever been recorded on the blockchain are not subject to change.

5. The Proof-of-Work (PoW) mechanism contributes to network security.

6. Bitcoin Cash is a hard asset with a maximum supply of 21 million $BCH.

7. Bitcoin Cash guarantees its users fast, affordable, and most importantly – reliable transactions without being tied to any location, which makes it a worthy replacement for existing payment networks.

What is Bitcoin Cash Used for?

Bitcoin Cash combines gold-like scarcity with the spendable nature of cash. With a limited total supply of 21 million coins, Bitcoin Cash is provably scarce and, like physical cash, can be easily spent. Transactions are fast with transaction fees typically less than a tenth of a cent. Anybody can accept Bitcoin Cash payments with a smartphone or computer.

Bitcoin cash is majorly used as payment for goods

Bitcoin Cash has various use cases. In addition to peer-to-peer payments between individuals, Bitcoin Cash can be used to pay participating merchants for goods and services in-store and online. Very low fees enable new micro-transaction economies, such as tipping content creators and rewarding app users a few cents. Bitcoin Cash also reduces the fees and settlement times for remittances and cross-border trade. Other use cases include tokens, simplified smart contracts, and private payments with tools such as CashShuffle and CashFusion.

Is Bitcoin Cash different from Bitcoin?

In 2017, the Bitcoin project and its community split in two over concerns about Bitcoin’s scalability. The result was a hard fork which created Bitcoin Cash, a new cryptocurrency considered by supporters to be the legitimate continuation of the Bitcoin project as peer-to-peer electronic cash. All Bitcoin holders at the time of the fork (block 478,558) automatically became owners of Bitcoin Cash. Bitcoin, which was invented by the pseudonymous Satoshi Nakamoto remains a separate cryptocurrency.

Unlike Bitcoin (BTC), Bitcoin Cash aims to scale so it can meet the demands of a global payment system. At the time of the split, the Bitcoin Cash block size was increased from 1MB to 8MB. An increased block size means Bitcoin Cash can now handle significantly more transactions per second (TPS) while keeping fees extremely low, solving the issues of payment delays and high fees experienced by some users on the Bitcoin BTC network.

As of October 2021, Bitcoin Cash has a block size of 32MB, compared to Bitcoin’s block size of 1MB.

How do you mine Bitcoin Cash?

Mining is the process in which new Bitcoin Cash transactions are confirmed and new blocks are added to the Bitcoin Cash blockchain. Miners use computing power and electricity to solve complex puzzles. By doing so, they gain the ability to produce new blocks of transactions. If one of their blocks is accepted by the network, the miner, or mining pool, earns a block reward in the form of newly-issued Bitcoin Cash.

Mining is highly competitive. As the price of Bitcoin Cash in the marketplace rises, more miners are incentivized to bring more hash rate into the ever-increasing miner competition to produce blocks and have them accepted by the Bitcoin Cash network. More miners make the network more secure by increasing and distributing the hash rate. This prevents a single miner from having control over the network.

Anyone can mine Bitcoin Cash. Mining requires specialized hardware called mining equipment, which can either be bought or rented. Miners also need to run a full node software (with the majority of miners currently running BCHN) to build blocks and connect to the rest of the Bitcoin Cash network. Mining can be done independently but miners often pool their hash rate together and share proportionally in the earned block rewards.

How do you buy Bitcoin Cash?

Bitcoin Cash is available at a variety of crypto exchanges, depending on your region. For the latest list of exchanges and trading pairs for this cryptocurrency, click on our Bitcoin Cash market pairs tab.

Bitcoin Cash is available on many top exchanges, such as: Binance, Huobi Global, Coinbase, FTX, Gate.io and more.

Conclusion

Bitcoin Cash (BCH) is one of the exciting crypto projects today going by its features. However, if you must invest in cryptocurrencies, you must do your research before doing so.

Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share
Source: CoinMarketCap
Tags: BitcoinBitcoin CashCryptoSatoshi Nakamoto
Institutional Trading Concept Institutional Trading Concept Institutional Trading Concept
ADVERTISEMENT
Previous Post

Powell Hearing To Include Crypto, US Senator Confirms

Next Post

Central Bank Of Brazil Announces Experimental CBDC

Admin

Admin

Next Post
Central Bank Of Brazil Announces Experimental CBDC

Central Bank Of Brazil Announces Experimental CBDC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • 99 Subscribers
  • Trending
  • Comments
  • Latest
yen and dollar

FOREX-Yen Flirts With Intervention Level As Dollar See Gains

October 11, 2022
AUD USD pair

Forex: AUD/USD Point To More Downside For The Aussie

October 20, 2022
Mayowa Owolabi on battles traders need to fight

Battle Every Trader Must Fight (Part 1)- Mayowa Owolabi

August 31, 2022
Virtual stadium in the metaverse

Why Virtual Stadium Can Be the Next Big Thing in the Metaverse

January 26, 2023
EUR/USD pair

EUR/USD Recovers from 20-year Lows

2
What is Initial Coin Offering?

Initial Coin Offering (ICO)

0
What is staking?

Staking

0

Defi (Decentralized Finance)

0
Crypto Influencer Allegedly Threatened Attorney Behind FTX Class Action Suit

Crypto Influencer Allegedly Threatened Attorney Behind FTX Class Action Suit

March 22, 2023
Gisele Bündchen Says She Was Blindsided By Terrible FTX Collapse

Gisele Bündchen Says She Was Blindsided By Terrible FTX Collapse

March 22, 2023
Nvidia Teams Up With Microsoft On Industrial Metaverse

Nvidia Teams Up With Microsoft On Industrial Metaverse

March 22, 2023
CFTC Commissioner Says Congress Must Order Crypto Regulators To Cooperate

CFTC Commissioner Says Congress Must Order Crypto Regulators To Cooperate

March 22, 2023

Recent News

Crypto Influencer Allegedly Threatened Attorney Behind FTX Class Action Suit

Crypto Influencer Allegedly Threatened Attorney Behind FTX Class Action Suit

March 22, 2023
Gisele Bündchen Says She Was Blindsided By Terrible FTX Collapse

Gisele Bündchen Says She Was Blindsided By Terrible FTX Collapse

March 22, 2023
Nvidia Teams Up With Microsoft On Industrial Metaverse

Nvidia Teams Up With Microsoft On Industrial Metaverse

March 22, 2023
CFTC Commissioner Says Congress Must Order Crypto Regulators To Cooperate

CFTC Commissioner Says Congress Must Order Crypto Regulators To Cooperate

March 22, 2023
Financial Market Examiner

Get all the latest Financial Market (Crypto & Forex) news, updates and other relevant resources here.

Follow Us

Browse by Category

  • Crypto News
  • Education
  • Forex News
  • Gaming
  • Review
  • Reviews
  • Stocks
  • Uncategorized

Recent News

Crypto Influencer Allegedly Threatened Attorney Behind FTX Class Action Suit

Crypto Influencer Allegedly Threatened Attorney Behind FTX Class Action Suit

March 22, 2023
Gisele Bündchen Says She Was Blindsided By Terrible FTX Collapse

Gisele Bündchen Says She Was Blindsided By Terrible FTX Collapse

March 22, 2023

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

?>