Bitcoin Cash - A fork of the original Bitcoin

Bitcoin Cash (BCH)

What is Bitcoin Cash?

Bitcoin Cash is a hard fork of the original Bitcoin. It was created in August 2017 because of differing points of view over how to scale the Bitcoin blockchain. At the time, Bitcoin fees were high due to an increase in usage on the network.

To solve this, the Bitcoin Core development team proposed SegWit, a mechanism to reduce the size of transactions and fit more into every block. However, other actors in the ecosystem voted to increase the block size. The Core team argued that this would centralize the mining process, while the other faction claimed that adding extra protocols went against Satoshi’s (the original founder of Bitcoin) vision.

Neither side could agree and the network split.

Why does Bitcoin Cash have value?

Bitcoin Cash is very similar to Bitcoin since they share the same codebase. The increased block size maintains the transaction fees below the 1 cent mark, which makes it ideal for micropayments. For this reason, it has been used to make tipping bots in social networks. It is now used as a peer-to-peer payment system which was what Satoshi had originally envisioned Bitcoin would be… among other things.

What are the Pros of Bitcoin Cash?

● Low fees

● Deflationary model

● Works as a means of payment and as a store of value

What are the Cons of Bitcoin Cash?

● High block size, which demands more heavy equipment to mine effectively

● More resource-intensive than Bitcoin

● More centralized than Bitcoin

What are BCH’s tokenomics?

Just like Bitcoin, the supply of Bitcoin Cash is capped at 21 million coins. Every ten minutes a new block is created and the miner who solves the proof-of-work puzzle receives a reward of 6.25 BCH. Any person with the appropriate equipment can participate in the mining process.

Who founded Bitcoin Cash?

Amaury Séchet, developer of the Bitcoin ABC client, introduced the first implementation of Bitcoin Cash.

Who are Bitcoin Cash’s Investors?

None

Concise Crypto Grade:

C :Bitcoin Cash set out to complete Satoshi’s vision of a trustless peer-to-peer payments network… and they did that. Unfortunately, it was mired in much controversy and was ultimately a fork of the original Bitcoin protocol. Bitcoin Cash does provide a fast, reliable, inexpensive way to send payments across the globe. However, crypto technology has advanced quite a bit since 2017 and there are now faster, cheaper, more environmentally friendly ways to exchange value. 

Where can I buy BCH?

Coinbase, Binance, Bitstamp, Kraken, CoinEx

What ecosystem does Bitcoin Cash run on?

Bitcoin fork