Bitcoin Cash (BCH) Explained
Bitcoin Cash (BCH) is an altcoin version of the popular Bitcoin cryptocurrency. Bitcoin Cash is the result of a hard fork in blockchain technology. One of the most significant changes from Bitcoin to Bitcoin Cash is the size of the coin. Previously, Bitcoin’s 1MB limitation caused transaction delays, so Bitcoin Cash increased the potential block size to enable a greater number of transactions and help the cryptocurrency scale as it grew and competed with more traditional cryptocurrency platforms.
After its creation, Bitcoin Cash quickly became the 3rd most successful cryptocurrency, following Bitcoin and Etherium. Although Bitcoin Cash has a higher transaction rate, the currency is not accepted in as many places as Bitcoin or Etherium, and disagreements in the developer community have caused Bitcoin Cash to be promoted as more of an investment tool than a transactional currency.
In November 2018, Bitcoin Cash developers decided that another hard fork was necessary and Bitcoin Cash split in two. Forking is often the result of a deadlock in an open source project that is so insurmountable that all work stops. Typically this happens when development team members are unable to resolve personal conflicts or fail to reach a consensus about next steps.
In this particular fork, one group of developers felt that block size should be limited to 32MB. The second group put forth a competing software version that increased blocksize to 128MB. As of this writing, the two Bitcoin Cash forks are commonly referred to as Bitcoin ABC (Bitcoin Adjustable Blocksize Cap) and Bitcoin SV (Satoshi’s Vision).
Bitcoin Cash trades on digital currency exchanges including Bitstamp, Coinbase, Gemini, Kraken and ShapeShift, using the Bitcoin Cash name and the BCH ticker symbol.
Advantages of Bitcoin Cash
You will exchange funds from virtually anybody in the world, You do not need to transfer the money through a bank account or another merchant, So, you do not have to spend any amount on fees, You can transfer BCH without having to offer personal information that can make it safer compared to other payment methods, so, you do not have to worry about your identity getting stolen.
You will send & receive the amount of money that you get immediately, There is no waiting time anymore unlike when you choose other merchants, The Bitcoin Cash block (in the blockchain) is eight times bigger than a Bitcoin block, This makes BCH faster, cheaper & more scalable than Bitcoin, meaning that more people can transact on the blockchain at any given time, Bitcoin cash is becoming more & more adopted by the day because of this.
There are many reasons to invest in Bitcoin Cash & most of them arise from its multiple merits, Unlike Bitcoin, that limits the maximum block size to 1MB, Bitcoin Cash initially increased the block size to 8MB, But since May 15, 2018, the block size has increased more, so, The current block size is 32MB, having a larger block makes sure transactions get validated & processed much more quickly, The overall scalability of the network increases and the fees of the transactions fall, creating an absolutely win-win situation.
Disadvantages of Bitcoin Cash
Significant disadvantage of this fork is the automatic adjustment of the network`s computing complexity. Unfortunately, it has direct dependence on the speed of extraction of new data. That is, if for a certain amount of time miners get an insufficient number of blocks, then complexity decreases. This pattern works in both directions. Miners started to use this vulnerability and got BCH in periods of complexity recession, and when the situation changed, they turned to BTC. Such actions led to the network`s destabilization and increased volatility of the BCH rate. This problem has not been solved till this day, but the development team manages to restrain it. Cryptocurrency investors do not consider Bitcoin Cash as a long-term asset yet. This coin is more used as a speculative tool. For this reason, at the moment BCH has rather vague and uncertain future.