What is Bitcoin Cash?
Bitcoin Cash is a “peer-to-peer electronic cash” that was formed from the hard fork of Bitcoin. It was created by miners after they could not agree on several changes to the size of bitcoin blocks. When a blockchain is split into two different versions of the chains, a hard fork takes place. Bitcoin cash is different from other coins like Ripple or Ether, as it shares a part with Bitcoin. It aims to provide peer-to-peer electronic cash with low fees, fast transactions and high-degree of decentralisation.
History of Bitcoin Cash
Bitcoin Cash was formed on August 1, 2017 as a result of a hard fork of Bitcoin. It came into existence after miners realized that a block size larger than 1 MB will be beneficial for the currency during its scaling process. The main difference between Bitcoin and Bitcoin Cash is the block size. A Bitcoin uses 1 MB block size, while the Bitcoin Cash has 8 MB block sizes. If a person owns a bitcoin prior to August 1, 2017, he/she automatically owns Bitcoin Cash as well. This essentially means, you own the same amount of Bitcoin Cash as you did Bitcoin at the time of the hard fork. The main purpose to initiate the hard fork was to increase the number of transactions that can be processed by increasing the block size to 8 MB against 1 MB of Bitcoin. The larger block size of 8 MB helps Bitcoin Cash to process more transactions in one block. This also results in processing large number of transactions faster for lower fees.
Features of Bitcoin Cash
Bitcoin Cash supporters believe that block space should not be limited and the block size should increase when demand exceeds supply. It also focuses on keeping the blockchain fees at minimum, thereby encouraging more people to use the blockchain technology. Another factor that sets Bitcoin Cash apart from Bitcoin is the Segregated Witness (SegWit) integration. SegWit is basically a solution to the Bitcoin scalability issue as it works around block size. It splits the transaction into two segments - adding a signature or “witness” data from the original transaction and then attach it.
Bitcoin Cash offers replay attack and wipeout protection. A replay attack takes a transaction that happens in one blockchain and maliciously repeats it in another blockchain. Bitcoin Cash uses a redefined sighash algorithm to prevent the replay attack. Another feature of Bitcoin Cash is that it offers a way to adjust the proof-of-work difficulty quicker as compared to the normal 2016 block difficulty adjustment interval that is found in Bitcoin.
Where can you buy Bitcoin Cash
The market capitalisation of Bitcoin Cash as of April 2018 was $10,467,749,089 USD. Bitcoin Cash is supported by popular exchanges like Coinbase, Kraken, Bittrex, Bitfinex and Coinbase.
Bitcoin Cash Wallets
Bitcoin Cash holders can choose from an array of wallets such as Ledger, Coinbase, Bitpay, Melis, CoinSpace, Stash, Copay, Jaxx, Coinomi and many more.
Bitcoin Cash Mining
Similar to Bitcoin, Bitcoin Cash can be mined.
Bitcoin Cash Price Trends
Risks involved in dealing with Bitcoin Cash
It must be noted that cryptocurrencies are volatile in nature and are prone to several risks. It is not possible to determine whether the Bitcoin Cash value will increase or decrease. Hence, it is advised to invest your hard earned cash in mutual funds instead as it is a more safer option.