When you were first into the crypto sphere you might have just heard of the word Bitcoin (BTC) and thought that it was the mightiest crypto. When it comes to crypto in terms of value, nothing really compares to Bitcoin, but this crypto also has some disadvantages. Actually, as Bitcoin grew more popular its TPS (Transactions Per Second) slowly decreased. They had to create a better system with less transactional cost, low-cost usage and more TPS; hence Bitcoin Cash (BCH) was introduced in August 2017. Although Bitcoin Cash and Bitcoin sound very similar and also have a related logo/logo color, they both are completely divergent and discrete in some ways.
Bitcoin Cash performed extremely well in its first weeks of creation. When people earned free Bitcoin Cash (explained in the below heading) most people were really enthusiastic and traded their Bitcoin Cash right away. There was another alternate way, people shouldn't have done that. Bitcoin Cash performed extremely well and even got ranked in Coinbase. This is really a great thing as Coinbase only ranks four cryptocurrencies from all the ones. This really made a lot of people aware of Bitcoin Cash.
So now, let's have a view at what Bitcoin Cash is.
Table of Contents
- What is Bitcoin Cash?
- Bitcoin Cash creation
- Pros and Cons of Bitcoin Cash
- Different block size from Bitcoin
- Price difference as compared to Bitcoin
- Buying Bitcoin Cash
What is Bitcoin Cash?
Started on 1st August 2017, Bitcoin Cash is cryptocurrency that is a change in protocol from Bitcoin. Bitcoin Cash also has a new roadmap. We can say that Bitcoin Cash is Bitcoin’s fork. A fork is when a blockchain separates into a pair of prospective tracks ahead. Bitcoin Cash is a possible second kind of Bitcoin that turns into account new features and rules that are implemented. To get to the point, Bitcoin Cash is like the derivative outcome Bitcoin which was released in 2017 (Bitcoin Cash’s release). Bitcoin was released in 2009. These two have a some similarities:
- They both are used as payment systems; i.e., they are used to send and receive
- They have exactly the same amount of coins, that is 21 million
- Both their technology is very similar
One very interesting thing happened to this crypto, BCH, on the day in which it was created. What happened was that any person who had Bitcoin at that time of BCH’s creation received free Bitcoin Cash! That to, in the ratio of 1:1. This means that if a person held 1.5 Bitcoins at that time, he would right away receive the same amount in BCH. So on that day, that person would have 1.5 Bitcoins as well as the freely received 1.5 Bitcoin Cash.
The main purpose of BCH is to send and receive funds just like Bitcoin – the payment system. This means that people can do nearly everything that they have done with Bitcoin like receiving and sending. However, Bitcoin had low transactions per second (TPS) and higher transaction fees. That is why Bitcoin Cash was created. To allow much faster transactions as compared to Bitcoin as well as low transaction fees.
Bitcoin Cash creation
The whole Bitcoin Cash thing only started due to a few disagreements. After Bitcoin was created, there were a lot of disagreements on its current technology. A lot of people desired to increase the number of transactions processed by changing the format of the block.
The other lot of people wanted to increase the maximum block size. These were the two major arguments causing factors. The concern was that only one of these two changes could be implemented. It also has to be a community based change. That means that nobody can make changes to the system unless a lot of people agree to do it. More changed formatted data in the block would mean that more transactions can be processed. More block size would mean that the transaction speed can be increased.
So at the end, they cast a vote. Guess who won? Yep, it’s the “Change the format” people that won by gaining 97% of the votes. So what happened next? Well, the blockchain had to perform a soft fork which means that certain ideas from the previous blockchain will be changed but the later blocks will still be recognized by the original one.
Due to this, the second choice people who lost the vote weren’t happy. So these group of people decided to perform a hard fork. A hard fork is when a new block operates on a separate blockchain e.g Bitcoin Cash.
This is the story of how BCH was created.
Pros and Cons of Bitcoin Cash
- Quick transactions per second
- Low transaction fees
- Greater scalability
- Highly efficient
- Easy to acquire
- Not used by a lot of people
- Miners get less profit
- Lower liquidity than Bitcoin
Different block size from Bitcoin
A larger block size helps in terms of improving the cryptocurrency’s scalability.
Bitcoin’s average block size is 1MB. As of February 2019, the average block size of it, increased from 1 MB to 1.305 MB. This surpasses it’s previous records. However, by January 2020, it’s block size has plummeted back toward 1 MB, its average.
Most of the time, BCH is said to have an 8 MB block size limit. For Bitcoin Cash in 2018, the maximum block size of it was increased 4x (from 8) to 32MB, but actual block sizes on Bitcoin cash have remained only a small fraction of the 32MB limit.
Price difference as compared to Bitcoin
Cryptos like BTC or BCH derive their value from in terms of ROI (return on investment) and their total growth. ROI, in short, is the approximate return on investment that you attain if you have purchased it at the time of launch (or earliest known price available). For e.g, the current Bitcoin ROI is up by 41885.96%. This means that if you have purchased Bitcoin worth $2 then, it would currently be worth $83771.92. In the case of BCH, the ROI is a loss. Bitcoin Cash’s ROI is currently down by 1.76%. This means that if you have purchased Bitcoin worth $2000 then, it would currently be worth $1964.8 which is a loss.
Currently, the price of a single Bitcoin is about $56,677 whereas the price of BCH is only about $546 which is only just less than 1% of Bitcoin. The highest at which Bitcoin Cash has been to Bitcoin is 33%. Bitcoin is (as of march 2021) currently 60.27% of the total crypto industry ( $1.73 Trillion) with a current market cap of $1,056,397,317,775. The highest value that Bitcoin has reached is $58,330.57 on Feb 21, 2021. The lowest value that Bitcoin has reached is $65.53 on July 05, 2013.
Bitcoin Cash is currently lower than 0.75% of the total industry. 1 BCH is currently only 0.009658 BTC. The highest value that Bitcoin Cash has reached is $4,355.62 on Dec 20, 2017. The lowest value that Bitcoin Cash has reached is $75.03 on Dec 15, 2018.
Buying Bitcoin Cash
Just like any other crypto, BCH can be traded on nearly all exchanges available. A few that i will be explaining are Coinbase, Coinmama and Kraken.
Buy Bitcoin Cash through Coinbase
Getting started on some crypto exchange and instantly owning Bitcoin Cash in just a few minutes is very easy. Especially through Coinbase, the most trusted place to buy and sell crypto. Here are the steps, in short, to quickly open an account and start buying BCH:
The first thing that you have to do is to get started. By getting started what i mean is that you have to sign up. To sign up to Coinbase, you have to enter your first name, last name, your email and your password. You then have to certify that you are 18 years of age or older to click on the “Create account” button.
After you have created your account, you have to verify your account to prevent theft or fraud. In this process, you’ll have to enter a photo ID to make sure it’s really you who’s going to use this.
That’s it, you can successfully get started with buying Bitcoin Cash with as little as $2 or €2 or ₹25. You can either pay with your bank account or with your debit card.
Purchase Bitcoin Cash through Coinmama
Getting started on some crypto exchange and instantly owning Bitcoin Cash in just a few minutes is very easy. Especially through Coinmama, the easiest place to buy and sell cryptos. Here are the steps, in short, to quickly open an account and start buying BCH:
The first thing that you have to do is to sign up. To sign up to Coinmama, you have to enter your email, password and your country of residence. You then have to certify that you are 18 years of age or older to click on the “Create account” button.
You then have to verify your account before starting to buy BCH with either your credit or debit card. This process involves you uploading your passport, ID or other documents. Once all these are approved, you can continue to buying Bitcoin Cash for up to a whopping amount of 15,000 USD with either your credit or debit card.
To learn more on how to verify your account and unlock more features, visit our Coinmama guide.
Buy Bitcoin Cash through Binance
Getting started on some crypto exchange and instantly owning Bitcoin Cash in just a few minutes is very easy. Especially through Binance, the world’s largest crypto exchange. Here are the steps, in short, to quickly open an account and start buying BCH:
The first thing that you have to do is to sign up. To sign up to Binance, you have to enter your email, password and your referral ID which is optional. This is if you want to sign up through your Email. If you want to sign up through your mobile, then you have to enter your mobile number, password and your referral ID which is optional. You then have to check the “I have read and agree to the Terms of Service” checkbox in order to click on the “Create account” button.
After you have registered your account, you have to verify your account. Then that’s it, you can start buying and selling cryptos either by a bank transfer, trade or by your credit card.
All you have to do is enter the amount and select a payment method. Confirm your payment details. Complete the 3DS Safety Certification and then that’s it, payment complete.
To learn more on Binance, visit our Binance guide.
Disclaimer: Digital Wallets News does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.