What is Bitcoin Cash?

  • Bitcoin Cash was born from a Bitcoin Hard Fork in a quest to solve the slow speed and high transaction costs that BTC presented in the past.

According to the listing of CoinMarketCap There are more than 3,600 different cryptocurrencies, with multiple variants in blockchain technology, and designed for completely analogous uses.

All these cryptocurrencies have arisen thanks to the fact that the entirety of the Bitcoin code is open, which allows anyone in the world to replicate BTC and change its characteristics according to what is intended to be done.

But, the case of Bitcoin Cash (BCH) it is a bit different from other cryptocurrencies that came from scratch. BCH stems from a dispute between Bitcoin developers over the slow speed and high transaction costs that BTC featured in the past, Therefore, these characters decided to separate from the project and create their own by updating the original Bitcoin code.

Bitcoin Cash was created specifically in the month of August of the year 2017 thanks to a Hard Fork of Bitcoin Core (BTC). Therefore, it shares the original code of the world’s first cryptocurrency, many of its main characteristics and even the transactions validated and included in the blockchain until August 2017.

What is a hard fork?

A hard fork is a permanent change in the rules of the blockchain of a cryptocurrency. Once the Hard Fork is made, the new blockchain update will not follow the rules of the old version. Any block mined with the old rules of the game, will be rejected by the new blockchain.

Not necessarily a Hard Fork entails the complete disappearance of the old chain of blocks and with it of the cryptocurrency. In the case of the 2017 Bitcoin Hard Fork, it was possible to create a new one and maintain the previous cryptocurrency.

Bitcoin Cash had the support of users, miners and nodes once the Hard Fork was carried out and is currently one of the most important cryptocurrencies in the world, occupying the number five position by market capitalization.

What is Bitcoin Cash?

If Bitcoin Cash is born out of Bitcoin, what were the permanent changes to the BCH blockchain rules that made it separate forever from BTC? The answer is the block size, which migrated from the original 1 Megabyte of Bitcoin in 2017 to the 32 Megabytes proposed by the BCH developers. Today BTC has a block size of 4 MB.

In addition to increasing the block size, The new cryptocurrency eliminated from its code the “SegWit” process by which certain “unnecessary” data was eliminated from Bitcoin transactions, which generated more space for more transactions per block in BTC. It makes a lot of sense, since Bitcoin Cash with a block size 32 times bigger than BTC, it would not have any problem in the storage size.

Far from these two fundamental changes, the two cryptocurrencies have much more in common than technical differences. They are still mineable, they have the same PoW mining method; with its pros and cons; and finally both are completely decentralized.

The real difference between cryptocurrencies is in the security section. Thanks to the fact that most of the miners stayed in Bitcoin and did not update to the new version, mainly due to the fear that the project would not work, the security of BCH is less than that of Bitcoin.

By having fewer miners, there is therefore less computing power and with it more possibilities of having security problems, such as a 51% attack.

BCH seeks to solve slowness and high transaction costs

Bitcoin Cash arises after many disputes between developers, where the main points were the slowness of transaction validation and the high costs that the BTC network was presenting.

Recall that, the price level of Bitcoin evolved from costing a few cents on the dollar, to reaching $ 20,000 dollars in a matter of 8 years. But it was not only its price level that increased but also its fame and use around the world.

This accelerated increase in its use, and in its prices, took the network by surprise and its developers even more, who at that stage of the network did not want to make such profound changes to the code that the creator of Bitcoin, Satoshi, had built. Nakamoto. Situation that began to create discussions, debates and fracture within BTC.

Already in the year 2017, With BTC prices in a parabolic behavior and with more and more people using it, it caused its limited block size of only 1 MB to reach 600 KB in capacity.

This generated validation times of hours, and transaction costs that made microtransactions of a few dollars impossible and in the case of high amounts, the costs reached 40% of the transfer amount.

Undoubtedly, this situation was causing Bitcoin to have problems to become massive and reach all the potential that BTC had. But not only that, as the world’s first cryptocurrency was moving further and further away from its primary goals, which were to serve as decentralized digital money for all of humanity.

In the midst of this situation, a group of developers, guided by Roger Ver, decided to upgrade with a Hard Fork to Bitcoin, increasing its block size to 32 MB with the intention of reducing costs and waiting times.

In addition, the word Cash was added to the name, to differentiate a slow cryptocurrency like Bitcoin, and a faster one like BCH. Bitcoin Cash intends to be able to compete against companies like Visa and PayPal in the number of transactions per second.

Where can I buy Bitcoin Cash?

Today BCH is one of the most important and most used cryptocurrencies, occupying the 5th position in market capitalization at $ 4,571 million dollars.

Being one of the 10 largest, most crypto exchanges in the world have BCH listed on their platform. And in exchanges like Binance Y Coinbase This cryptocurrency can be acquired, either by trading with some other crypto, or even comparing it with Mexican pesos in some exchanges that accept this local currency.

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What is Bitcoin Cash?

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