Bitcoin Cash is a peer-to-peer electronic cash system created to enhance the speed, lower transaction costs, and improve network scalability of Bitcoin.
The original Bitcoin has been struggling with slow transactions for some time now. This problem is only getting worse as more people use it. There are also high fees that make small payments uneconomical.
Miners developed Bitcoin Cash (BCH) to address these problems by increasing the block size limit from 1MB to 8MB, thereby allowing more transactions to be processed in a given time frame.
How does Bitcoin Cash work?
Bitcoin Cash is built on the same fundamental principles of Bitcoin. It shares the main peer-to-peer structure, where each transaction is signed with a private key which enables you to make transactions on the network.
However, there are some distinct differences between them. First of all, it has an increased block size of 8MB instead of 1MB. This means that more transactions can be made at once. Another difference is the way it handles the BTC ticker. Bitcoin Cash supporters believe that BCH is the closest thing to what Satoshi originally envisioned for Bitcoin.
The process of mining on Bitcoin Cash works exactly as it does on Bitcoin. Miners use powerful computers to solve complex mathematical problems that are required to complete transactions on the network.
Those who succeed will split Bitcoins that were given by the protocol as a reward for mining. This is how new coins come into existence, which means that Bitcoin Cash follows an identical path as its predecessor.
The only difference is the fact that it’s harder to mine BCH than BTC. Mining Bitcoin Cash is simply not as profitable as Bitcoin right now, which deters most miners.
How to Buy BCH Coins
The easiest way to buy Bitcoin Cash is to find an exchange that trades in it. For example, eToro, CEX.io, and Binance all offer BCH-BTC trading pairs. You can also purchase them on Changelly or through LocalBitcoins.
If you choose to use eToro, CEX.io, or Binance, make sure you validate your account with an ID and proof of address. It might take some time before they approve the documents, but this isn’t a problem in most cases.
The next step would be to find a wallet where you can store your coins. There are multiple options for wallets, but the most secure should always be your preference. Here is a list of wallets that support Bitcoin Cash:
Hardware wallets: Ledger Nano S and KeepKey
Mobile wallets: Bitcoin.com, Edge, and Coinomi
Desktop wallets: Bitcoin ABC, Bitcoin Unlimited and BitGo
Online web-based wallets: Bitpay
Paper wallet: Cashaddress.org
History of Bitcoin Cash (BCH)
Bitcoin Cash was developed in August 2017 as a hard fork of Bitcoin. The split occurred after miners supported an upgrade to improve network scalability, mostly because people were paying too much for transactions with BTC.
Transactions clogged the original Bitcoin blockchain because it capped the size of blocks at 1MB. This created a bottleneck which resulted in significant delays for processing incoming transactions.
That’s why the blockchain was updated to increase the block size to 8MB. At the same time, this made it possible for people to conduct 32MB blocks with no issues.
The creation of Bitcoin Cash was controversial, which caused many miners and users to stay on BTC. Some went as far as calling BCH a scam due to its pre-mining before the split, which meant that a select few people already owned the majority of coins before it even existed.
However, BCH has survived and is now one of several currencies with high market capitalization. It’s among the top ten cryptocurrencies in terms of popularity, and it’s available on multiple exchanges.
The Future of BCH Coins
Bitcoin Cash was supposed to become the ideal alternative to BTC, which is why many people bought into it. The only problem is that it’s becoming more and more difficult to mine, and there aren’t enough miners interested in this project right now.
On the other hand, its value is on an uptrend, which means that investors are increasingly interested in it.
Other ways to invest in bitcoin cash (besides buying it)
As you can see, Bitcoin Cash is pretty popular among investors. If you don’t feel like buying them, there are other ways to experience the benefits of this currency without spending a dime. We’re talking about cloud mining, crypto trading, and investing in mining pools.
Of course, you can also mine bitcoins using your personal computer, but it’s highly unlikely that this activity will make you any money. It requires significant investments in equipment and maintenance, which is why we don’t recommend it to people who are not experienced with mining cryptocurrencies.
Cryptocurrencies like Bitcoin Cash are gaining in popularity, which is why we think you should take advantage and join the growing community of investors and miners.
Even if you don’t plan on buying any BCH coins, there’s still a lot you can do to profit from this trend. Just keep in mind that investing in cryptocurrencies may involve risks, so you should always do your own research before making any decisions.
Bitcoin Cash (BCH) FAQ
Can I buy Bitcoin Cash using Paypal?
Yes, multiple exchanges allow you to buy Bitcoin Cash using Paypal.
What is the best wallet for Bitcoin Cash?
Different types of wallets can be used to store your BTC coins. This includes software wallets (desktop and mobile), web apps, online wallets, and physical wallets (hardware).
Is Bitcoin Cash an Altcoin?
No, Bitcoin Cash is not an altcoin. It’s a hard fork of BTC that was created to enhance its on-chain scalability and reduce transaction costs.