You have probably heard of bitcoin (BTC), the most popular cryptocurrency and also the largest crypto by market capitalization. But have you also heard of Bitcoin Cash, represented by the ticker BCH? Do you know the difference between Bitcoin Cash and bitcoin?
If you are among the cryptocurrency OGs, you must have possibly heard about the 2017 hard fork of the Bitcoin network that led to the birth of Bitcoin Cash. But for those who are new to the cryptocurrency world, you may be wondering what the heck happened and why it was necessary to create BCH.
What exactly is Bitcoin Cash and what’s the story behind it? How did it become this popular in the crypto market? You will be surprised to learn why Bitcoin Cash was created and how it differs from the leading cryptocurrency, bitcoin. On that note, if you are interested in learning more about Bitcoin Cash, continue reading this article.
The History Behind Bitcoin Cash
To understand Bitcoin Cash, it is important to first have a basic understanding of its predecessor, bitcoin. Bitcoin is a decentralized digital currency created in 2009 by Satoshi Nakamoto that enables peer-to-peer (P2P) transactions without the need for a central authority. Over the years, bitcoin has grown to become the most well-known and widely used cryptocurrency in the world today.
But as bitcoin grew in popularity, its lack of scalability also became a huge concern. The Bitcoin blockchain can only process a limited number of transactions, leading to slow transactions per second (TPS) and higher fees.
Read also: What is bitcoin?
This is where Bitcoin Cash came in. In 2017, a group of Bitcoin developers and users decided to “fork” the Bitcoin network to create a new cryptocurrency called Bitcoin Cash. These developers and users sought to proffer a solution to the problematic scalability issues of the Bitcoin network.
The developers behind Bitcoin Cash believed that increasing the block size or the amount of data the blockchain can handle per block was the best solution to this lack of scalability. By increasing the block size, they were able to increase the number of transactions that could be processed per block, resulting in faster transaction times and lower fees.
Over the years, Bitcoin Cash has remained in the game gaining adoption worldwide. Notably, Bitcoin Cash has a maximum supply and circulating supply of 21,000,000 BCH and 18,711,032 BCH respectively. Just like every other cryptocurrency, the Bitcoin fork has seen its highs and lows, recording an all-time high (ATH) of $4,355.62 and an all-time low (ATL) of $78.50.
Knowing the history behind Bitcoin Cash is still not enough. It is also imperative to understand the main disparities between Bitcoin Cash and bitcoin. So what are these differences?
How Bitcoin Cash is Different From Bitcoin
Although Bitcoin Cash and bitcoin are very similar, there are some technical differences between the two popular and widely traded cryptocurrencies. The main difference is the block size or the amount of data these blockchains can handle in each block. Bitcoin Cash has a larger block size than bitcoin, which allows more transactions to be processed per block. This makes Bitcoin Cash more scalable than the Bitcoin blockchain.
This difference in block size has several implications. One of the most notable is that Bitcoin Cash can process transactions faster than bitcoin. It also has lower fees as a larger block size means less competition for block space and therefore less pressure for higher fees. This is inarguably the key difference between Bitcoin Cash.
Another nuance is the philosophical difference between the two cryptocurrencies. The developers behind Bitcoin Cash believe their approach is more in line with Bitcoin’s original vision as a peer-to-peer decentralized currency useful for everyday transactions. Bitcoin, on the other hand, is increasingly being considered a store of value, a development that goes against its original purpose as an electronic cash system.
Despite these numerous dissimilarities, both BTC and BCH are unique digital payment methods and are available on myriad centralized and decentralized crypto exchanges.
How to Buy, Sell, or Store Bitcoin Cash
If you are interested in investing in cryptocurrencies like Bitcoin Cash, you may be wondering how to grab some BCH coins. Well, fear not! Buying and selling Bitcoin Cash is pretty easy once you know where to go and what to do.
First, let’s talk about where to buy Bitcoin Cash. Several exchanges support Bitcoin Cash, including big players, including Binance, Coinbase, and Kraken. These exchanges allow you to buy BCH using preferred fiat currencies, stablecoins, or other cryptocurrencies.
To buy Bitcoin Cash on any of these centralized exchanges, you need to create an account and pass their Know Your Customer (KYC) process. This usually involves providing some personal information and identification. Once your account is set up, you can deposit funds and use them to buy Bitcoin Cash.
Should you want to sell your Bitcoin Cash, you can do this through the same exchange you bought it from. Simply log into your account, navigate to the selling page, and follow the prompts to sell your BCH for any fiat currency or any other cryptocurrency of your choice.
Aside from buying and selling, it is also important that you keep/ store your BCH assets in a safe place. The safest way is to use a non-custodial cryptocurrency wallet, although this also comes with its associated risks if you are a newbie as you practically become your own bank. A crypto wallet is a software or wallet application that allows you to store, send, and receive cryptocurrencies.
To store Bitcoin Cash in a wallet, you need to create an address on any of the trusted wallet applications. You can then transfer your Bitcoin Cash bought on an exchange to that address. The recent implosion of the then-second-largest crypto exchange FTX has reinforced the risks associated with storing assets on centralized exchanges.
So buying and selling Bitcoin Cash is pretty easy. Just find a reputable exchange that supports it, create an account, and follow the buy and sell instructions. But make sure you are using a trusted and secure cryptocurrency exchange for your transactions.
The Current State of Bitcoin Cash
Crypto investors are always interested in the performance of crypto projects. It is always important to be clear about whether a crypto project is worth investing in.
First, let’s talk about the market price of Bitcoin Cash. Like all cryptocurrencies, the price of Bitcoin Cash is constantly fluctuating. At the time of writing, Bitcoin Cash is priced at around $101.42 per coin. That’s significantly less than its all-time high of more than $4,355.32 set in 2017 during the peak of the bull run. But it is important to remember that the price of any cryptocurrency can be affected by several factors and is not always a reliable indicator of its value.
What about the rate of adoption of Bitcoin Cash? While it’s difficult to know exactly how many people are using Bitcoin Cash, it’s safe to say that it has a large following in the cryptocurrency community. It is listed on many major exchanges and supported by many traders and service providers. It’s also worth noting that Bitcoin Cash is not as widely recognized or accepted as bitcoin, the #1 cryptocurrency in the world.
While BTC has a market capitalization of roughly $324.78 billion, the market cap of BCH is approximately $1.95 billion, making it the 26th largest cryptocurrency according to Coinmarketcap’s ranking at the time of writing.
Conclusion
Bitcoin Cash is a cryptocurrency created as a result of a hard fork on the Bitcoin network. It has several key features that set it apart from Bitcoin, including faster transaction times, lower fees, and greater scalability. These features make Bitcoin Cash an attractive option for many cryptocurrency investors which has contributed immensely to its growing adoption.
What does the future hold for Bitcoin Cash? As the crypto market continues to evolve, it is difficult to accurately predict the future of Bitcoin Cash. But it is clear that BCH has established itself as a significant player in the cryptocurrency space and deserves special attention. Whether it will continue to be popular and extensively adopted in the future remains to be seen. It is certainly a cryptocurrency to keep an eye on.
If you are interested in learning more about crypto coins/ tokens and the crypto space in general, be sure to check out our other articles. The world of cryptocurrencies or crypto assets is constantly changing and there is always more to learn and discover.
Credit: Ndianabasi Tom
Image source: Express.co.uk
