Bitcoin Cash became a revolutionary peer-to-peer electronic cryptocurrency on August 1st when it was borne from Bitcoin. The cryptocurrency, like most others, is completely decentralized and requires no centralized bank, as well as no trusted third parties to operate efficiently. While a confusing process at first with its birth from Bitcoin’s hard fork, Bitcoin Cash shows intrepid promise, and the value of the currency has risen since its starting point at an incredibly steady rate.
On August 1, 2017, a “hard fork” of Bitcoin led to the automatic creation of Bitcoin Cash. The history of the two cryptocurrencies was the same until this point in time. If an individual controlled their private keys to their stored Bitcoin, or if they had their Bitcoin stored on a crypto exchange which supported the development of Bitcoin Cash, they would automatically own a one-to-one equivalent of Bitcoin Cash for their Bitcoin.
Bitcoin Cash focuses on the immediate increase of the block size from 1 megabyte to eight megabytes, without the need to implement SegWit (segregated witness, or the removal of the signature data from Bitcoin transactions). This focus allows for more transactions to be included in their network, this leading to inherently lower transaction fees.
Bitcoin Cash exists post-fork through the process of Bitcoin Cash mining. This complicated process not only releases new Bitcoin Cash coins into the market but also assists in the processing of transactions into the Bitcoin Cash blockchain. Bitcoin Cash mining takes place by compiling operations into blocks to solve a hash-based puzzle. The first hardware user to decode the puzzle adds the block to the chain and receives a reward for their computing power used.
Bitcoin Cash mining is an entirely decentralized process, performed by anybody with the knowledge and access to do the extraction. The only requirements are an internet connection and computer hardware capable of being pushed to its limits. Network security is dependent on the decentralization, as decisions are made on consensus. Block rewards currently provide most of the miner incentives.
Bitcoin Cash mining difficulties directly correlate with the level of effort put into the mining process across the Bitcoin Cash network. The system adjusts the difficulty of mining rates often to ensure that the Bitcoin Cash block discovery rate doesn’t falter due to supply and demand of miners. More needed computing power means the difficulty to mine is more challenging, maintaining barriers to entry and ensuring that mining doesn’t get too heavily saturated. Most of the operational costs for Bitcoin Cash miners derive from hardware or electricity.
Bitcoin Cash exchanges are secure, digital marketplaces, inside which crypto trading can take place, and traders can purchase and sell Bitcoin Cash for other cryptocurrencies or fiat currencies (legal tender). Bitcoin Cash, under the currency ticker symbol BCC, came to fruition from the fork of the bitcoin currency into both bitcoin and Bitcoin Cash on August 1, 2017. Currently, Bitcoin Cash is traded on many major exchanges. Know more about how to buy/sell Bitcoin Cash here.
Bitcoin Cash exchanges work to match cryptocurrency buyers with bitcoin sellers. Very much like an average stock exchange, cryptocurrency traders have the option purchase and sell bitcoin by either inputting a limit or market order.
Two of the best, most reliable exchanges for the purchase and sale of Bitcoin Cash cryptocurrencies are Cex.io and Shapeshift. More information on these two exchanges can be found in the Bitcoin Cash Exchanges section of the List of The Most Reliable and Highest Quality Exchanges article.
Similar in theory to typical physical wallets for storage of currency and security in a pocket or purse, Bitcoin Cash wallets are utilized to store transactional hashes for Bitcoin Cash. The actual difference between these two wallet types stems from the idea that a crypto currency wallet is used to store collections of private, secured transaction keys. Normally, a Bitcoin Cash wallet is password protected and well encrypted to prevent unauthorized access to the wallet.
Unlike actual Bitcoin Cash networks and block chains, a Bitcoin Cash wallet is controlled by its owner. This is instead of being fully distributed and shared, as the blockchain currently is. It is vital to ensure you keep up with your Bitcoin Cash wallet, and to keep it safe if opting for a physical format, such as a USB drive hardware wallet.
The most efficient wallet for those not needing heightened security measures for their cryptocurrency is an online version. An example of this would be Coinbase’s wallet. If you’re looking to kick things up a notch, the next best thing would be a mobile wallet, where your Bitcoin Cash transactions are stored offline on your mobile device.
The Choosing the Correct Type of Wallet for your Coins article has far more information on the various types of cryptocurrency wallets available, as well as which work best for which situation, including Bitcoin Cash.
We now live in a world that depends on the amount of money that we have. Money is very essential in our daily lives. From your relationships to the way you view yourself, cash can have a serious bearing on your beliefs. There are numerous pieces of scientific evidence behind the idea that money truly can change people.
Is Bitcoin cash different from Bitcoin? Yes. Bitcoin cash is the continuation of the bitcoin project as peer-to-peer digital cash. It is a fork of the bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow in and scale.
Bitcoin cash is a peer-to-peer electronic cash for the internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate. The prominent use of peer-to-peer electronic cash is purposeful, Bitcoin cash is seeking to be a cryptocurrency that’s focused on transaction capacity.
Why was a fork necessary to create bitcoin cash? The explanation is that the legacy of bitcoin code had a maximum limit of 1MB of data per block. When you own a bitcoin, you automatically own a bitcoin cash too because bitcoin cash is a fork of the ledger that means you own the same amount of bitcoin cash as you did bitcoin at the moment in time of the forking block.
Bitcoin Cash also offers three new features. First, it offers a much larger block size of 8MB. Second, it offers replay and wipeout protection. It has a slightly different of the transaction signature, and 1MB is required for the forking block. Third, it offers a method to adjust the proof-of-work complicatedness quicker than the normal 2016 block difficulty modification interval found in bitcoin.
Bitcoin Cash’s biggest advantage is that it can be exchanged at any time with bitcoin conversion. The holder can always change the hands of bitcoin cash into bitcoin, but also at any time in the account of Bitcoin transformed to Bitcoin Cash.
So which is better, bitcoin or bitcoin cash? It is difficult to define “better” as they both have inherent risks in an emerging market. What you should regard as is how they are similar, different, what your venture thesis is, and how much risks you are willing to take.
In addition, the Bitcoin is in the number one market position with $55.9 billion in market capitalization, and this is about ten times the size of Bitcoin Cash with $55.7 billion in market capitalization at the number four spot. Now as we go into comparing some of the other more ceiling points we first start with unique transactions. The number of unique transaction for bitcoin surpasses bitcoin cash about two-hundred fifty thousand transactions vs about sixteen thousand transactions of bitcoin cash. Bitcoin is still the market leader in that regard.
When it comes to the average transactions fees, however, bitcoin cash is much cheaper than bitcoin at this moment of time with a nine cent transaction fee while to as bitcoin given at $9.6 transaction fee. The number of active addresses is much higher for bitcoin about a hundred thousand difference for bitcoin cash, and the main reason is that there are still many people who have not yet pulled out their bitcoin cash from hardware wallets, ledger or an exodus wallet which is softwallet.
In terms of block time, the bitcoin is still much faster than bitcoin cash at this current point of time. The bitcoin stands at about double the block time of bitcoin cash. It is still to be determined whether the clear market leader is going to be either bitcoin or bitcoin cash. Clearly, the statistics will vary based upon once more people get or split their bitcoins.
There is too much hesitation around Bitcoin Cash compared to the bitcoin. Who knows if the miners will be supporting the network for long or if it simply fades away. To put a load of cash into it would be unwise. But if you have a lot of BTC now and you are getting Bitcoin cash for free, best suggested on holding on to them for a while before selling.
For additional knowledge about bitcoin cash, a group of influential miners, developers, investors, and users who are in opposition to the agreed consensus (aka BIP-91 or SegWit2x) have decided to fork the original bitcoin blockchain and created a new version called “bitcoin cash.” It is fully decentralized with no central bank and requires no trusted third parties to work.
For your information, the original bitcoin is a larger block size and bitcoin cash uses BIP-143 to solve the quadratic hashing and to add replay protection. BIP-143 is also enabled by SegWit on the main chain.