Buying Bitcoin Cash – What You Should Know
Have you thought about buying bitcoin cash? On August 1, 2017, Bitcoin had a hard fork that came and a split in the bitcoin blockchain. As a direct result was the creation of Bitcoin Cash (BCH).
It is known as an alternative version of Bitcoin, making use of new rules and features, and with a different development roadmap.
What is Bitcoin Cash?
Bitcoin Cash is a peer-to-peer electronic currency for the internet. It does not require a central bank or no trusted third parties to operate.
It is fully decentralized. Bitcoin Cash seeks to be a cryptocurrency that’s focused highly on its transaction capacity.
Bitcoin Cash features new things, as an upgrade to Bitcoin. Some of its main features are bigger block size of 8 Megabytes.
Additionally, it also offers a way to adjust the proof-of-work difficulty quicker than the average 2016 block difficulty adjustment interval found in Bitcoin.
Is Bitcoin and Bitcoin Cash the Same Thing?
Even though Bitcoin Cash came from a hard fork of Bitcoin, they are different. Bitcoin Cash is the continuation of the Bitcoin project as a peer-to-peer digital cash.
It’s a fork of Bitcoin’s blockchain ledger, featuring an upgraded consensus rules that allows Bitcoin Cash to grow and scale.
Those who held Bitcoin before August 1, 2017 (The time Bitcoin Cash was created) became new owners of Bitcoin Cash.
They had the same amount of Bitcoin Cash as they had Bitcoin at that time. But every transaction made after the fork (August 1st) is wholly separated from Bitcoin and Bitcoin Cash.
Another thing to clear up is the fact that Bitcoin Cash is a clone. It is considered a brand new coin. It does not have the same worth as Bitcoin. The value of Bitcoin Cash currently is roughly $3000 as of December 2017.
What Caused the Fork?
The legacy Bitcoin code had a maximum limit of 1 Megabyte (1MB) of data per block, or about three transactions per second.
After years of debates, the community could not reach a consensus even though it is technically simple to raise this limit.
The 1 Megabyte block size limit was causing problems for Bitcoin. In 2017, capacity hit the ‘invisible wall’.
Fees went really high and Bitcoin became unreliable, with some users unable to get their transactions confirmed, even after waiting for days.
That made Bitcoin stop growing. Some users, merchants, businesses, and investors abandoned Bitcoin, and its market share among other cryptocurrencies quickly went down.
Before buying bitcoin cash it is important to know how it was derived. Now that you know bitcoin cash is here, do you plan to purchase any?
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