Bitcoin Cash – what is it?

2 min reading

Bitcoin Cash has become quite popular, ever since it was created. It's a new substitute for a traditional Bitcoin, with a better transaction processing system and much cheaper.

Bitcoin Cash (BCH) is a cryptocurrency. In mid-2017, a group of developers wanting to increase Bitcoin's block size limit prepared a code change. The change, called a hard fork, took effect on 1 August 2017. As a result, the Bitcoin’s blockchain was split in two. At the time of the fork, anyone owning Bitcoin was also in possession of the same number of Bitcoin Cash units. The technical difference between Bitcoin Cash and Bitcoin is that BCH allows larger blocks in its blockchain than its cousin, which in theory allows it to process more transactions per second.

Bitcoin Cash Price

The ever-rising fees associated with Bitcoin transactions were one of the main reasons for the inception of Bitcoin Cash. A very hands-on test, conducted in December 2017, showed that a Bitcoin Cash transaction was 99.56% cheaper than the equivalent transaction on the original Bitcoin network. At the very end of 2017, people were paying $28 on average in transaction fees to move their Bitcoin tokens. Someone has even claimed that they had to pay a $16 fee to send $25 worth of Bitcoin, which is a 40% commission.

Bitcoin Cash controversy

There are two factions of bitcoin supporters, that support large blocks or small blocks. The Bitcoin Cash faction favours the use of its currency as a medium of exchange for commerce while the bitcoin supporting faction view Bitcoin's primary use as that of a store of value. Some bitcoin supporters like to call Bitcoin Cash “Bcash,” “Btrash,” or simply, a scam, while Bitcoin Cash advocates insist that their implementation is the pure form of Bitcoin. Samson Mow of Blockstream pointed to Bitcoin Cash's use of this the "Bitcoin" name as a source of animosity between the Bitcoin and Bitcoin Cash camps.

BCH trading

Bitcoin Cash trades on digital currency exchanges including Bitstamp, Coinbase, Gemini, Kraken, Bitfinex, and ShapeShift using the Bitcoin Cash name and the BCH ticker symbol for the cryptocurrency. A few other exchanges use the BCC ticker symbol, though BCC is commonly used for Bitconnect. On 26 March 2018, OKEx removed all Bitcoin Cash trading pairs except for BCH/BTC, BCH/ETH and BCH/USDT due to "inadequate liquidity". As of May 2018, daily transaction numbers for Bitcoin Cash are about one-tenth of those of Bitcoin. By November 2017 the value of Bitcoin Cash, which had been as high as $900, had fallen to around $300, much of that due to people who had originally held Bitcoin selling off the Bitcoin Cash they received at the hard fork. On 20 December 2017, it reached an intraday high of $4,355.62 and then fell 88% to $519.12 on 23 August 2018.