Bitcoin Cash (BCH) - A cryptocurrency that wants to be the "real" Bitcoin

Bitcoin Cash (BCH) is the first hard fork Bitcoin. It is thanks to this cryptocurrency that we have learned that you can do block chain separation and create two from one cryptocurrency. The latest one has many enthusiasts, so it quickly gained great popularity.

We continue the Forex portal cycle  The club, in which we describe the largest, most known, popular and most controversial cryptocurrency projects in the world. Today Bitcoin Cash, thanks to which the world learned what a hard fork is.

From enthusiasm to contempt

Bitcoin Cash undoubtedly raises extreme emotions in the world of cryptocurrency. His opponents do not consider him in any way related to Bitcoin, even avoiding saying the word in its name. There was even an acronym Bcashthat the new cryptocurrency would not be associated with the better known predecessor.

In turn, enthusiasts argue that BCH is the "real" Bitcoin and will eventually replace it in the chair of the king of cryptocurrencies. They emphasize its greater scalability and the implementation of the vision of Satoshi Nakamoto - the anonymous creator of Bitcoin. They also raise the objection that the world's first cryptocurrency cannot be used for everyday payments, because it has become a… speculative asset. The question, which cryptocurrency is not such an asset (apart from stablecoins), still remains unanswered.

How Bitcoin Cash was created

For obvious reasons, Bitcoin Cash is based on Bitcoin code. Some Bitcoin owners decided to disconnect the block chain and develop a new project based on it.  On August 01.08.2017, 1, there was the first hard fork in the history of cryptocurrencies. The blockchain has been split into two different networks. All BTC holders (who of course expressed the wish to do so) have been assigned new BCH units in a 1: XNUMX ratio. Since that day, two independent blockchains have been operating - Bitcoin and Bitcoin Cash.

But where did the idea for rebellion come from? Some developers already noticed Bitcoin deficiencies. Its growing popularity quickly exposed the low scalability of the project, which translated not only into time-consuming transaction confirmation, but also to growing transaction costs. At BCH, this problem was easily avoided by increasing the capacity of one block from 1 MB to 8 MB. From 15.05. In 2018, the block size is already 32 MB, but it must be admitted that Bitcoin is also developing towards increased scalability, focusing on micro-transactions through the Lightning Network, i.e. moving some of them outside the main block chain.

How Bitcoin Cash works

The larger block capacity (32 MB) allows up to 8 million transactions per day, but this number has never been used. Even the 8 MB capacity is rarely used, because the successor of Bitcoin has still not reached its popularity. At its peak, the number of transactions was twice lower than in BTC.

Miners can add additional BCH units, and digging is possible on the same devices that excavate new BTC blocks. The number of units is limited and will eventually reach 21 million. Thanks to this, the transaction cost in BCH is lower, on average even several times than in Bitcoin. As a rule, it does not exceed USD 0,10.

Bitcoin Cash (BCH) Quotes

The Bitcoin Cash (BCH) cryptocurrency can now be traded on 113 cryptocurrency exchanges. As of 25.06.2020/231,7/18,4, it costs $ 4,2. 844 million units are traded, bringing the market capitalization in excess of $ 20.12.2017 billion. This translates into the fifth place among all cryptocurrencies in the world in terms of value. It is similar in terms of turnover - they change hands of a unit worth over USD 4.355,62 million every day. The highest Bitcoin Cash price was reached on December XNUMX, XNUMX, when it cost $ XNUMX.

Bitcoin Cash chart, D1 interval. Source: TradingView.com