Bitcoin Cash is and has proven to be an alternative to the traditional basic cryptocurrency Bitcoin Result of several conflicts in the world of cryptocurrency in August 2017. During this time the community developers could not agree on the most suitable update of the Bitcoin protocol. As a result, a new separate group of developers was formed, headed by Roger Ver. The event also resulted in a whole wave of mostly unsuccessful hard forks – changes in Bitcoin’s programming code that resulted in a drastic change in the block structure, with Bitcoin Cash being the ultimate successful outcome and bringing users instant profit. Bitcoin Cash as a virtual currency shares the block history of the basic cryptocurrency, but like every hard fork it uses a different blockchain. Aside from the fundamental differences, how they work is similar at the investment level. As we explain below, the potential as the cryptocurrency of the future is changing.
In the markets, you see Bitcoin abbreviated as BTC and Bitcoin Cash abbreviated as BCH. Was a new bitcoin needed? The key to this question is the limitations of the original Bitcoin and the differences that Bitcoin Cash brings with it.
The biggest problem with Bitcoin is that it is a slow technology. Because Bitcoin transactions take an average of 10 minutes to process and the number of users increases exponentially as the number of users increases. Also, more machines are needed to maintain high speed. Over time, the block size in Bitcoin proved insufficient, slower, and less scalable for use in day-to-day operations.
Bitcoin Cash developers were able to maximize the original block size and enlarge it eight times – the first alternative used an 8MB block size, and the size has been increasing ever since. This makes it possible to speed up the blockchain verification process and optimize the speed of transactions, regardless of the number of miners who support it. This is the great advantage of Bitcoin Cash over the main currency. On the contrary, a disadvantage of Bitcoin Cash is that its security is theoretically less due to the use of larger blocks.
Bitcoin Cash works in a similar way to Bitcoin. Bitcoin Cash uses wallets in which the cryptocurrencies you have purchased are stored, either by mining them or by buying them on platforms such as Bitfinex, Kraken, Bittrex, OKCoin, HitBTC, Bithumb, Livecoin or Allcoin which are the main exchanges. There you can buy Bitcoin Cash just like you would buy any virtual currency, including Bitcoin. All you have to do is say how much you want to invest.
Right now, buying Bitcoin Cash is very similar to betting on Bitcoin in its early days, only with a little more certainty about the general future of cryptocurrencies. There is an alternative on the market that solves one of Bitcoin’s problems, but no one can guarantee that it will catch on. In addition, two alternatives have already emerged, such as Bitcoin Gold and Segwit2x. The first keeps the Bitcoin block size but makes changes to the mining algorithm, while the second is suggested as a completely different alternative.
Bitcoin Cash supply can be tracked through exchange offices that track the movements of virtual currencies. Remember that Bitcoin Cash is even more volatile when Bitcoin is volatile. This means that the price of Bitcoin Cash can rise and fall sharply in a short period of time.
The first step is the visit the official website to get acquainted with the idea of this cryptocurrency. You can then download a wallet to participate in the Bitcoin Cash Economy. Most wallets are free to download and easy to use as they have some important features like sending, receiving, saving money safely, browsing transactions, and more. It makes sense to show respect to the “parent” and use the bitcoin.com wallet. Users can switch between the two currencies with little effort. Another option is Yenom, a Bitcoin Cash wallet that is simple and easy to use for beginners. Coinomi is currently the leader in mobile wallets as it accepts most of the world’s cryptocurrencies. Another wallet, Electron Cash, is a quick option as it uses servers indexing the Bitcoin Cash blockchain. You can also buy hardware wallets to store your crypto offline.
Currently mining or buying Bitcoin is still profitable, but in the long run a miner who truly believes that Bitcoin Cash can outperform Bitcoin can migrate his equipment to a position in that currency. In any case, the cryptocurrency sector is currently experiencing convulsive moments. Blockchain technology is on everyone’s lips, but Bitcoin Cash is opening new avenues that are real alternatives to traditional Bitcoin and you need to see how this affects the entire industry.