All You Need to Know About Bitcoin Cash(BCH)
When you hear Bitcoin Cash - BCH, what comes to mind? Do you think it is a form of cash that has a Bitcoin symbol on it or you are totally new to this term? Whatever the case may be, this is the information you need to clear your doubts and to keep you informed on what is going on in the crypto world.
What is Bitcoin?
Before diving into what is Bitcoin cash, it is highly important to get a solid background of what the root word 'Bitcoin' means because it will create a good landing to understanding the concept of discussion. Bitcoin is a type of cryptocurrency that works on the technology of peer to peer to manage all transactions without the need of a sovereign body. It is not like the regular fiat that needs a central body rather, it is run using a decentralized policy.
Also, it is known to be an open-source currency such that it can be upgraded by any users from any location. Bitcoin appears in form of codes that are locked up in mother storage known as the blockchain. Now, this blockchain as the name already implies has a lot of blocks in it that are formed by different transactions of which they all constitute to form the chain. Plus, these transactions are transparent to all users to help track how their currency is doing.
Although all these properties make Bitcoin currency the new big deal in transactions as opposed to fiat currency yet, an increase in users created a major drawback. Because of many users, scaling became a big problem in the crypto world. This need, therefore, brought a solution that is forking into in the blockchain resulted in Bitcoin Cash - BCH.
What is Bitcoin Cash?
In simple terms, Bitcoin cash can be seen as an extension of Bitcoin currency. But for better understanding, Bitcoin cash came about when the Bitcoin block was extended(forked) to give room for faster transactions. This extension was done in an attempt to solve the scaling problem that was persistent due to many users. Therefore, Bitcoin cash was introduced to help obliterate unnecessarily high transaction fees and also conflicting transactions.
Also, because of the forking that produced Bitcoin cash, many other blocks have been produced with this same extension to make crypto users have a worthwhile experience. However, Bitcoin cash BCH is still the largest fork produced from Bitcoin as it has more active users than other forks. Plus, the Bitcoin** cash price** is also slowly moving up to be a major price in the crypto market.
Bitcoin vs Bitcoin Cash
The next question is, Bitcoin vs Bitcoin cash, what is the difference? Well, there are so many differences as well as similarities between Bitcoin and its cash. Even though they are both decentralized forms of currencies, yet they are distinct in five other ways. In the next 5 points, the differences are carefully explained in a way that even a novice can relate to.
The Bitcoin currency was branched into the Bitcoin cash because the time it takes for verification of any transaction to be done is quite long. Although this issue posed a serious problem among crypto enthusiasts with both the developers and miners, but with the introduction of the Bitcoin Cash BCH, the issue has been greatly improved. Now, it takes almost 1/4 of the initial time spent waiting on the network which is favorable for all users. So, even if there are many miners or buyers at a particular period, Bitcoin cash transactions would continue with a good speed.
The regular size of one Bitcoin blockchain is approximately 1mb and each block has loads of transactions running in it. This size caused the major drawback in transaction speed and the solution was to increase it by a process called forking. When the first hard fork was done initially, the size became 8mb but currently, the size of Bitcoin cash is about 32mb. Therefore, the major difference between the two currencies is in the size which is over 30mb.
Because of an increased size which doesn't just accommodate more transactions but increases the speed, the transaction fee is more reduced for Bitcoin Cash. This reduction in transaction fee is traced to the lower time it takes for one transaction to be done. This simply means that the longer time that Bitcoin takes for a transaction had a major impact on the charges levied on each transaction. But, with Bitcoin cash increased chain size, the speed is faster, hence, transaction fees are lower.
Another major difference between Bitcoin Cash and Bitcoin is the security both currencies give. An alteration in the blockchain pattern that produced BCH has done more harm than good concerning its security. This is so because the improvement was done by some developers who in a way have given access for possible compromising buy outsiders. So this security issue is what differentiates both currencies.
Though the price of Bitcoin to that of Bitcoin cash is evidently not the same yet, it serves as a major difference between the two. The Bitcoin cash price is still at a staggering $250 but the price of Bitcoin has risen to more than $15000 which makes it still the widest most used cryptocurrencies even with all the scalability issues. So, Bitcoin and Bitcoin Cash prices are not similar in any way when it comes to distinguishing their prices.
Here you have it, all you need to know about Bitcoin cash. No doubt, by now, you know what is Bitcoin cash and you can conveniently differentiate it from the popular Bitcoin. Even though the background of these two is quite similar, there are not to be classified as the same except that they are both cryptocurrencies. The next thing to do is to start buying some Bitcoin cash from brokers or directly. Either way, you are making a good move into financial stability.
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