Bitcoin Cash vs. Bitcoin |What is Bitcoin Cash?
The Bitcoin Cash developers answer the question of “what is Bitcoin Cash” this way: Bitcoin Cash is a peer-to-peer e-money for the internet. This money is completely decentralized and has no central bank and no intermediaries needed to exchange it. This definition of Bitcoin Cash is very similar to the definitions of tens of cryptocurrencies available, so we should go for the “what is the difference of Bitcoin Cash with other cryptocurrencies” question. In this tutorial article, we are going to talk about the events that led to the emergence of Bitcoin Cash.
What is Bitcoin Cash?
Bitcoin Cash is a hard fork of Bitcoin designed to reduce Bitcoin problems. The hard fork is a kind of split and update. One of these problems was the difficulty of mining, which undermined the economic cost of mining; on the one hand, every bitcoin transaction took a long time to execute; therefore Bitcoin Cash stepped in to solve such problems.
Bitcoin has undoubtedly been one of the most admirable innovations of recent years. However, there has been a lot of criticism because of its scalability issue. Lack of scalability made Bitcoin no longer used for daily transactions such as buying sandwiches or a cup of coffee, but this problem was resolved by setting up the Lightning network and you could buy Starbucks coffee with Bitcoin right now.
No customer or seller is willing to wait for payment confirmation of purchase for hours, and the increase in fees for faster approval is also irrational.
Bitcoin entered a hard fork in August 2017, which eventually led to the creation of Bitcoin Cash. A fork is a phenomenon that causes a split and, if it occurs, two cryptocurrencies with separate blockchains will form. In this case, after the fork, bitcoin remains the main currency on its chain and is now backed by segwit, while a new currency has been split from the chain, which we call Bitcoin Cash and is displayed with BCH.
Bitcoin Cash Price
At the time of writing this article, each BCH unit is priced at $ 220.60, and Bitcoin Cash ranks fifth in cryptocurrency trading on the coinmarketcap website.
But the story of Bitcoin Cash does not end here. Bitcoin Cash was hard forked on November 15th, 2018, and this update made its blockchain split into two parts: Bitcoin ABC and Bitcoin SV and each segment has its fans.
The split occurred because Bitcoin Cash developers were unable to agree on an update to this coin. Some supported an update called Bitcoin ABC and others supported the Bitcoin SV version.
After Hardfork, it turned out that more support was provided to Bitcoin ABCs than Bitcoin SV, so it was put in the main chain and converted to Bitcoin Cash again. So the Bitcoin ABC is the original Bitcoin Cash and the Bitcoin SV is the new cryptocurrency.
Is Bitcoin Cash an Altcoin?
Now that you are somewhat familiar with Bitcoin Cash, we should answer this question with a No. Bitcoin Cash is not an Altcoin. Bitcoin Cash As described above is a complete split of Bitcoin blockchain. Bitcoin and Bitcoin Cash have the same blockchain history as of August 1, 2017, and each has experienced a separate blockchain since that date.
Bitcoin Cash is not an Altcoin because it has basic code and applications in common with Bitcoin and only new features have been added, but it has the BCH symbol price and transactions other than Bitcoin.
It can’t be judged because Bitcoin’s birth is not long overdue, but it has done well so far. The population of Bitcoin Cash fans and users is growing every day, and its network is constantly evolving.
Bitcoin Cash is not perfect just like the other cryptocurrencies. Each has features that others do not. Investing in BitcoinCash just like any other asset has potential risks, so it’s best to have enough information before making a decision.
Bitcoin Cash vs. Bitcoin
BitcoinCash is very similar to Bitcoin in structure. No wonder, because BitcoinCash is a split from bitcoin. However BitcoinCash has some differences and in fact advantages over Bitcoin, the most important of which are:
The block size has increased to 8 MB at the beginning and 32 MB at the next Hard Fork. As a result, more transactions with fewer commissions can be done on the network.
BitcoinCash will not execute Segwit.
It does not have the “replace by fee” feature that is approved to make changes to things like payroll queue.
Resistant to replay attacks.
BitcoinCash has a solution to reduce network stiffness.
It has fewer transaction fees than Bitcoin.
Bitcoin and Bitcoin Cash Differences
Speed is the most important difference between Bitcoin and BitcoinCash. Initially, the size of each bitcoin block was 1MB. (Today it is 2 MB) But why not just increase this size? For example, change it to 8000 MB?! The answer to this question can be illustrated with an example of heavy traffic.
For example, suppose we have a heavy traffic problem, so we decide to change the speed limit to 200 mph. what will happen? First of all, a safety problem arises because high speed increases the chance of accidents and fatalities. But the bigger problem is that the old and small cars are now not suitable for this highway because they can’t move fast enough.
In such a case, the highway becomes full of powerful people with powerful cars, and an ordinary driver either stays at home or uses lonelier roads. This is exactly what happens with the increase in restrictions. More blocks equal more data to be processed per transaction. Therefore small nodes will not be able to process this added data and decentralization is unavoidable.
The transaction problem divided the Bitcoin community into two groups. One group claimed that Bitcoin was not good for use as a payment system from the beginning, and the other group believed it only needed to be more scalable. Since neither of the two could reach an agreement, in August 2017, the Bitcoin network was essentially split through a process called Hard Fork, which created a new version of the Bitcoin network called BitcoinCash.
BitcoinCash uses the same code type, but the size of each block is 32 MB; this increase makes it possible to process more transactions per day.
The Best Bitcoin Cash Wallets
There are several wallets already available that support BitcoinCash. Here are just a few of them. More information can be found on the coin’s official website.
Ledger Nano S (Hardware Wallet)
The Ledger Nano S is a hardware wallet for storing Bitcoin, BitcoinCash, Ethereum and other Altcoins designed with strong security features for storing cryptocurrencies and securing digital payments.
You can connect this wallet to any computer with a USB port. The Ledger Nano S has a screen for verifying each transaction and you can confirm transactions with only a single physical button on the device. The Ledger Nano S is one of the best hardware wallets used worldwide for its security features.
Coinomi (mobile wallet)
The Coinomi wallet also supports various currencies, including BitcoinCash. Besides the common features, it is also possible to convert your cryptocurrencies into each other on this wallet. Coinomi is one of the largest wallets capable of supporting Bitcoin and other currencies, as it supports more than 70 cryptocurrencies and more than 200 tokens.
Trezor (Hardware Wallet)
Trezor is a hardware wallet that provides advanced security for managing Bitcoin and other cryptocurrencies’ private keys. Unlike traditional storage methods (offline storage or paper wallet), Trezor can make secure payments without disclosing your private key to an infected computer.
Jaxx (Mobile & Desktop Wallet)
The Jaxx wallet supports various cryptocurrencies including BCH. One of the features of this wallet is that you can use it to sync your wallet to other devices. Other common features such as scanning QR codes and PINs for entry are also available for security. The wallet is also available for Android and iOS.
KeepKey (Hardware Wallet)
KeepKey is one of the commercially available hardware devices for BitcoinCash storage. This wallet has the same seed key backing feature with PIN and works like other wallets. Currently, this wallet only supports 6 cryptocurrencies.
Exodus (Desktop Wallet)
Exodus is a desktop wallet made in mid-2015. It’s completely free to use and has a very user-friendly interface. As soon as you open the Exodus wallet, a baseline chart shows you all your assets in cryptocurrencies. Exodus is available for Mac, Linux, and Windows operating systems.
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