Bitcoin Cash (BCH) – A Brief Intro for Investors
To solve Bitcoin’s scaling problem, Bitcoin Cash was forked from Bitcoin in August 2017 to create a coin with an increased block size limit that allows for more transactions to be processed more quickly.
- Split from Bitcoin blockchain at block 478,588
- Block time estimated at 600 seconds
- 8MB block size that can increase with network adoption
- Hash difficulty varies based on supply of miners on the network
The 21 million cap is similar to that of Bitcoin core.
The same technology that saw users flock to Bitcoin (decentralization, immutability, security, etc.), also exists in Bitcoin Cash. Block times and sizes are the biggest change, as well as the difficulty adjustment algorithm (DAA), which allows for a quicker update for the hashing difficulty so that blocks are mined in appropriate time intervals.
All Bitcoin Cash transactions are broadcasted publicly on the blockchain, allowing transaction information to be traced via public keys
There is no centralized development team for the project. Roger Ver is the vocal leader of Bitcoin Cash, going as far to claim that it is the real Bitcoin. Amaury Séchet is the lead developer at Bitcoin ABC client, who was a big proponent in the original fork of the network, and to many is considered the lead developer of Bitcoin Cash.
Satoshi Nakamoto formulated an idea for a cryptocurrency that was not stifled by block size limits and slow transactions times. Bitcoin Cash is the true culmination of digital cash that can be transferred globally at lightning speeds for extremely low transaction costs.
As Bitcoin began to see a rise in the usage of its blockchain for transactions, a scaling problem quickly arose that needed to be addressed.
Some Bitcoin adherents believed the blockchain was fine as it was, and scaling could be done in off-chain solutions, while others felt it was imperative to increase the block size limit to allow for more transactions to be processed on the blockchain itself.
Eventually, this latter group split from the Bitcoin core community, forking from the Bitcoin blockchain on August 1, 2017 to form Bitcoin Cash, a peer-to-peer digital cash designed with the same underlying technology as Bitcoin with no limitations on transaction speed.
While Bitcoin limited its block size to 1MB, severely impeding the speed with which it can transact, Bitcoin Cash has taken the block limit and raised it exponentially, to 8MB, while also stating their belief that there should be no limit to block size if demand on the blockchain warrants an increase. This increase in block size allows for more transactions to be processed in a shorter period of time directly on the blockchain.
As demand for cryptocurrency transactions increase, Bitcoin Cash builds a stronger case for its place as a mainstay in the industry.
HOW TO BUY BITCOIN CASH
WHERE TO BUY BITCOIN CASH (BCH)
|EXCHANGE||COIN PAIRS TRADED|
|Binance||BCH/USDT, BTC, ETH, BNB|
|CEX.IO||BCH/USD, EUR, BTC|
|HitBTC||BCH/USDT, BTC, ETH|
|Livecoin||BCH/USD, RUR, BTC, ETH|
|Abucoins||BCH/USD, EUR, PLN|
|BitBay||BCH/USD, EUR, PLN|
|Bitfinex||BCH/USD, BTC, ETH|
|Bitstamp||BCH/USD, EUR, BTC|
|Bittrex||BCC/USDT, BTC, ETH|
|Exmo||BCH/USD, RUB, BTC, ETH|
|GDAX||BCH/USD, EUR, BTC|
|Kraken||BCH/USD, EUR, BTC|
|Kucoin||BCH/USDT, BTC, ETH, NEO, KCS|
|OKEx||BCH/USDT, BTC, ETH|
|Poloniex||BCH/USDT, BTC, ETH|
|Quoine||BCH/USD, JPY, SGD|
|Trade Satoshi||BCH/USDT, BTC, LTC, DOGE|
|WEX||BCH/USD, EUR, RUR, BTC, ETH, LTC|