Bitcoin Cash en Review

Throughout our reviews of the main cryptocurrencies on the market, we have dedicated ourselves to the analysis of different types of crypto assets. However, we have not yet talked about a particular case: when the functions of two cryptocurrencies collide. Therefore, today we will analyze Bitcoin Cash.

Basic data

Name: Bitcoin Cash
Acronym: BCH
Release year: 2017
Circulating volume: 18.042.975 BCH
Price today: $ 223.48
Market capitalization: $ 4,032,183,642 (5th place)

Origin: Challenging Bitcoin

Creating a decentralized currency has its consequences. Since it is the Bitcoin community itself that has the power over the direction of the cryptocurrency, the debate is common within it.

Especially when facing the tough problems that affect the first cryptocurrency. Since, to make modifications in the operation of the BTC, the approval of the majority of the nodes of the Blockchain is required.

This in practice means greater decision-making power for mining farms. Well, it is these groups with abysmal computing power, which handle most of the processing power of the blockchain. And if these groups do not agree, no changes can be implemented in Bitcoin.

Even when making modifications seems urgent, like when talking about the scalability of the currency. And, as we have mentioned on other occasions, Bitcoin faces a serious problem in this area.

The Bitcoin blockchain

The small size of the blocks of the Bitcoin chain is not enough to satisfy the needs of such a large community. Which leads to delays in the execution of transactions, and increased commissions for users.

This problem became particularly acute amid the bull rally of 2017. The increase in the number of users and operations led to major bottlenecks for the cryptocurrency. And therefore, to the emergence of an internal debate in the crypto community about what should be done.

Although, at times it seemed possible to reach an agreement to increase the size of the blocks. Eventually, the interests of the mining farms prevailed, leading to a split within the Bitcoin community.

Those who advocated an increase in the size of the blocks, decided to launch their own project. Thus leading to the creation of Bitcoin Cash in 2017, with 8 MB blocks (later increased to 32 MB), and a code based on that of BTC.

The role of BCH

As it defined itself, Bitcoin Cash seeks to rescue the original vision of Satoshi Nakamoto. Thus, they propose to recover the capacity of cryptocurrencies to be a means of payment for goods and services.

Therefore, Bitcoin Cash tries to create a cryptocurrency with faster transactions than Bitcoin. Thus becoming a currency with the ability to perform the same functions as fiat money.

What have you achieved so far?

To this day, Bitcoin Cash has managed to position itself as one of the main cryptocurrencies on the market. Thus, it would occupy the fifth place in the ranking of crypto assets by market capitalization size.

Likewise, the size of its blocks has allowed transactions with this currency to be much faster than with Bitcoin. Which, however, has not been enough to unseat BTC as the main cryptocurrency.

Therefore, in recent times, Bitcoin Cash has sought to diversify its operation. In this way, we have seen how mechanisms have been created so that BCH is used as a platform for the creation of smart contracts.

In this area, Bitcoin Cash would try to compete with Ethereum. Offering a means for the creation of tokens and therefore decentralized applications, and other contracts based on Blockchain. All this faster and easier than on the Ethereum network.

Cryptocurrencies: Bitcoin Cash was born as a hard fork of Bitcoin, in August 2017.
The cryptocurrency Bitcoin Cash was born as a hard fork of Bitcoin, in August 2017.

Challenges

If we judge the success of Bitcoin Cash to date according to its initial purpose, it certainly has not achieved its goals. And, if BCH was born to challenge Bitcoin, this last cryptocurrency maintains its hegemony over the crypto world.

This despite attempts to replace Bitcoin, even trying to take the cryptocurrency’s name on social media. However, BTC has managed to maintain its prestige and recognition worldwide, leaving BCH aside.

For this reason, Bitcoin Cash has been facing in recent times what we could consider an identity crisis. Not being the first cryptocurrency in its niche (replacement currency for fiat money), BCH has tried to diversify its range of action.

And because of this vagueness, and the currency’s attempts to find its ‘place in the sun’, Bitcoin Cash has faced more than 5 hard forks so far. Losing with each one a portion of their community, and therefore their chances of becoming a leading currency in any of the sectors.

Main Wallets

Bitcoin Cash, thanks to its versatility, is appreciated in various sectors of the crypto community. Therefore, there are multiple wallets that support BCH, becoming common for wallets to offer storage of Bitcoins and Bitcoin Cash.

Thus, important wallets such as Blockchain, Coinbase and even BitPay, have support for both cryptocurrencies. While on exchanges, BCH is highly appreciated as one of the most sought-after crypto assets for carrying out transactions. All this thanks to the speed at which they are executed.

Conclusions.

One of the most important consequences of the freedom in which cryptocurrencies work, is the competition that can arise. Thus, it is not surprising that coins such as Bitcoin Cash are created to try to improve aspects of other crypto assets.

However, seniority weighs, as has been discovered by BCH and other currencies that have tried to become leaders in their sectors. It is normal, within the crypto community, that they prefer to continue working on an already established project.

For this reason, there are many crypto assets out there, which, having been created to surpass their predecessors, come to nothing. Bitcoin Cash, despite everything, has achieved an important position in the market. However, today, it is quite far from its initial goal: to unseat Bitcoin as the leading cryptocurrency in the market.

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Bitcoin Cash en Review

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