Cryptocurrency: Bitcoin Cash (BCH) – overview
The Bitcoin Cash cryptocurrency appeared due to the division of the Bitcoin database into two independent chains. The emerging asset, which has a common history with classic Bitcoin, took the name Bitcoin Cash and the ticker symbol BCH.
Immediately after the fork (separation), many exchanges provided wallet owners with the opportunity to receive new version coins at a one-to-one rate. That is, if there were 10 BTC on the wallet, then their owner also received 10 units of the new BCH cryptocurrency.
The starting rate of Bitcoin Cash was very high, and the newcomer quickly took third place in terms of capitalization in the top cryptocurrencies, having moved such seasoned veterans like Ltc and Ripple.
However, the future fate of the coin is not so rosy. As soon as the exchanges launched Bitcoin cache I / O mechanisms, the exchange rate plummeted from $ 1,300 to $ 250. Such a colossal crash took only two days. Bitcoin Cash has a capitalization of $ 4.8 billion, and the coin remains a serious player on cryptocurrency exchanges.
History of Bitcoin Cash
The date of the division of Bitcoin, and, accordingly, the birth of the new Bitcoin Cash cryptocurrency, was August 1, 2017.
We will understand why and why a hard fork was needed. During the development of the classic bitcoin, few people thought that the cryptocurrency would become so in demand. Programmers decided that one block weighing up to a megabyte in ten minutes is enough. However, popularity grew rapidly. And with it the load on the system also grew. Space in the blocks was sorely lacking. Transaction processing speed was falling.
The transfer could be expected until half a week. The system of bribing miners for adding a transaction to a new block without a queue began to develop actively. It became clear that the problem could not be solved without a global redesign of the entire system. And it could be processed in two directions:
- Increase block size;
- Reduce the information that is entered in the block.
The ideal option was to implement both points at once. But there was one big ‘but.’ Bitcoin is a decentralized system. In order to embody global change and leave the coin as a single unit, the consent of all key participants is required.
Key developers, major miners and exchanges were to give a positive response to the proposal to move to new standards.
The separation itself was not sudden. It was preceded by a period of several weeks, during which dozens of discussions were held on how best to implement the update.
It was proposed, in particular, to leave the old block size, but to take out part of the information in an additional block. However, major miners took this option with hostility. But the idea of the creators of Bitcoin Cash to increase the size of the blocks and remove some of the information – many liked it. And then the question arose of a smooth transition. Most participants wanted a smooth gradual upgrade of the system. However, Chinese pools began to push the idea of instantly switching to a new protocol.
In the end, without reaching a common decision, the participants made a division into the classic BTC and the new BCH cryptocurrency. The separation point was block No. 478558.
Immediately after the separation, the classic rate and the Bitcoin Cash rate underwent significant fluctuations. However, in the future, the main growth remained for the classics. The prospects for Bitcoin Cash are not exactly known yet.
BCH working principle
Despite the turbulent history, BCH is still not much different from the classic bitcoin. There is exactly the same division into ordinary users and miners, blockchain technology, identical Bitcoin Cash mining methods. So the owners of Bitcoin Cash cryptocurrency coins receive the same bonuses from using BCH as users of the classic cryptocurrency:
- No registration. Everyone can become part of the system;
- There is no binding of a Bitcoin Cash wallet to a person. Complete anonymity and unlimited number of wallets;
- Cheap, anonymous transfers around the globe;
- Transaction cannot be frozen or rolled back;
- You can store coins online, on your computer, smartphone;
- The course depends solely on demand, no regulatory intervention;
- The total amount is predictable and clearly knows how many coins can be issued. The option to print an infinite number of coins is excluded.
So the functionality of the ‘beginner’ completely repeats the functionality of the classic coin. The difference is solely in the technical part.
Differences from Classic Bitcoin
Let’s figure out what is the difference between Bitcoin Cash and ordinary cryptocurrency:
- Block size increased from one to eight megabytes;
- The size of the information entered into the block has decreased;
- Difficulty changes every 6 blocks.
In total, all these decisions led to a serious acceleration of the system. If Bitcoin can produce 250 thousand transactions per day, then Bitcoin Cash – up to two million. The transaction processing fee also decreased. Although the latter is more likely a minus for miners.
Bitcoin Cash Rate Forecast
After the fever of the Bitcoin Cash rate in the first days after the fork, the rate stabilized and an increase began. However, the prospects for Bitcoin Cash are still not entirely clear. The fact that such large players as OKCoin, Huobi, BTCCPool, Bitmain, F2Pool, BTC.Top, ViaBTC, BiXin, BW, 1Hash, Canoe, BATPool, Bitkan supported the growth is beneficial to the growth.
Although there are many exchanges that choose not to cooperate with the cache, until the situation with the reliability of the newcomer is clarified.
In general, so far, those experts who have claimed that the original coin will develop much more dynamically than the Bitcoin Cash cryptocurrency have turned out to be right. To date, the rate of Bitcoin Cash fluctuates greatly, but almost ten times less than the price of the original coin. However, in the future for the next couple of years, the situation may radically change.
We should not forget that her youth plays against Bitcoin Cash. Investors simply do not trust the new currency. But as trust grows, so does the capitalization of Bitcoin Cash. Falls have almost stopped already, and the Bitcoin Cash rate is growing steadily, although slowly.
The technical aspect also plays an important role. The transition to larger blocks gave the cache a significant margin of safety for the future load. But the original BTC is already experiencing noticeable bandwidth difficulties. While customers still tolerate this, but at any moment a massive transition to the faster BCH cryptocurrency may begin.
Support for the miners is also very important for development. At the time of the fork, Bitcoin Cash was supported by only 3 percent of miners. However, now its percentage has reached 10. At some point, the process may become avalanche-like. The more Bitcoin Cash mining, the higher the rate; The higher the rate, the more willing to get Bitcoin Cash.
By the way, this can seriously hit the main competitor – the original bitcoin. If miners start massively leaving for a new currency, then the problematic bitcoin bandwidth can even drown. And then everyone will definitely rush into Bitcoin Cash or other cryptocurrencies.
In the near future, the cache is unlikely to move the classic king of exchanges. However, in the foreseeable future, it may well reach its mega-indicators, exceed them and take the first line in the world of cryptocurrencies.
Bitcoin Cash Wallet
So far, not all wallets that have worked with the old coin have agreed to service the new one. But the list is already pretty impressive:
- Bitcoin Classic
- Bitcoin ABC;
- Bitcoin Ultimate
- Electron Cash.
Let’s analyze the installation using the BXT wallet as an example:
- Required to go to the site;
- Select the installation file for your OS;
- Select a folder and install the program in it;
- After installation is complete, you need to select a directory for the backup storage of blocks.
Having completed the installation, you will have to go through the synchronization procedure via the Internet. How much time it takes depends entirely on the power of the computer and the speed of the Internet. If there is an up-to-date archive of blocks, then it can be slipped into the Bitcoin Cash wallet folder manually. This will save you the slow internet factor.
You can store BCH directly on exchanges, but this is a dangerous method. Hacker attacks or exchange problems with government regulators can present an unpleasant surprise.
How and where can I exchange Bitcoin Cash
Buying Bitcoin Cash is quite simple. Today, many exchanges and exchangers provide the opportunity for direct purchase of coins. The most convenient way is through BestChange.
The site provides a list of online exchange points where you can buy or sell BCH. It is also possible to directly withdraw money to a Sberbank card.
It should be noted that the current situation with Bitcoin Cash in the exchange market is very favorable. Most often, such young currencies rarely manage to be bought directly without tricks like “buy an old cryptocurrency and exchange it for a new one on the exchange”. The new cue ball is as affordable as the old.
How to earn coins
There are certain nuances with Bitcoin Cash mining. On the one hand, the mining technology is exactly the same as the old version of the coin. On the other hand, the price of a coin is much lower, that is, the benefit from mining Bitcoin Cash is also less. This factor so far scares old miners from the new currency. However, if desired, there are no problems with BCH mining. The rules and requirements of the game are exactly the same as the classic coin. If you want real profit, stock up on a powerful farm or join a pool.
In general, the idea of starting to mine BCH may pay dividends in the future. It is worth remembering that the cache mining market is not yet divided, unlike ordinary bitcoin. Starting now, you can grab a good piece of the pie in the future.
If you decide to do mining, remember that it will require you to have a very serious technical base, a reliable and ‘greasy’ power line and the ability to interact with the pool. Mining bitcoins alone is almost impossible. Costs will gobble up all revenue without a balance. However, having poured in or created a pool, you can get very good profit. And considering that the prospects of Bitcoin Cash can reach the first place in the top of cryptocurrencies, the minimum income today can grow into mega-income tomorrow.
If you do not have opportunities for mining, then you can use Bitcoin Cash taps. You won’t get big profits by this method, but no costs are required. Cranes are called small advertising sites that pay registered users to complete small tasks.
Tasks are most often of the following types:
- Filling captcha;
- Clicking banners;
- Participation in various games;
There are Bitcoin Cash taps that do not require any action at all. Just be on the site. The question arises, ‘what is the benefit for the site crane?’. The answer is simple – advertising. Cranes place tons of ads on their pages. And the user receives, in fact, a reward for cheating views on advertised sites.
Bitcoin Cash has all the same features as the classic, but is more attractive in the distant future.