What is Bitcoin Cash? Everything you need to know about the BCH cryptocurrency

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What is Bitcoin Cash? Everything you need to know about the BCH cryptocurrency

Bitcoin Cash (BCH) was a hard fork from the Bitcoin network that took place in August 2017 to accommodate more transactions than its predecessor could handle. It is a decentralized peer-to-peer electronic payment system and digital currency created to allow merchants, users and merchants to send and receive regional and international payments without the inconvenience of long delays and high fees to have to take.

In November of the following year, Bitcoin Cash experienced two more forks, leading to the creation of Bitcoin Cash ABC and Bitcoin SV (Satoshi Vision).

Table of Contents

What is Bitcoin Cash?

How does Bitcoin Cash work?

Invest in Bitcoin Cash 

Bitcoin Cash Wallets – Store BCH securely 

What are the pros and cons of Bitcoin Cash?

The Future of Bitcoin Cash 

FAQ

What is Bitcoin Cash?

Unlike Bitcoin, Bitcoin Cash uses larger blocks of 8 and 32MB to accommodate a larger number of transactions, allowing miners to process and validate more transactions per second. This removes the bottleneck that is usually created on the Bitcoin network by long delays and high processing fees. Bitcoin Cash is capable of processing up to 25,000 transactions per block, compared to Bitcoin’s 1000-1500 transactions. It can also be used as a payment method to send money to anyone, anywhere in the world.

Bitcoin Cash (like any other blockchain) has its own token, denoted by the BCH. At the time of writing, BCH is trading at $221.84 and has a market cap of over $4.1 billion.

Is Bitcoin Cash a form of money?

Despite better liquidity, faster processing time, and affordable transaction fees, Bitcoin Cash does not have enough acceptance as a means of payment to be considered a money or currency type. Aside from that, you can spend your BCH coins in multiple retail and e-commerce outlets and websites to purchase a variety of products and services.

Is it legal?

Since bitcoin cash is a derivative of the bitcoin blockchain and based on similar concepts, its legality falls under the same laws and regulations as bitcoin. Aside from those countries that have banned cryptocurrency trading in general, it is legal to buy, sell, and trade Bitcoin Cash across a wide range of crypto exchanges and trading platforms.

What do people use Bitcoin Cash for?

Bitcoin Cash was introduced as a better and faster bitcoin. However, it has evolved into a digital asset that can be used in more ways than one.

    With BCH you can send and receive payments worldwide faster and cheaper compared to BTC. 

    BCH is accepted by many retailers and online shops, so you can use it as a payment method for purchasing products and services. 

    Bitcoin Cash can serve as an investment option for both short-term and long-term investment drivers for investors and traders looking to make a profit. 

Which merchants accept Bitcoin Cash?

Bitcoin Cash is currently accepted as a valid payment method by more than 4,300 merchants. This means there is a wide range of options where you can spend your BCH tokens. Some of the top traders are listed below:

    NameCheap.com – If you want to buy domain names at affordable prices using your BCH coins, this is the service you are looking for. 

    Dish.com –  Get your satellite TV and tons of entertainment at home and pay for the service with your Bitcoin Cash tokens. 

    Destinia.com –  Planning a vacation trip? This is the website that not only accepts BCH as a valid form of payment but also arranges a wonderful vacation for you. 

    eGifter.com/Gyft.com – Both services allow you to use your Bitcoin Cash to buy from a diverse range of gift cards for loved ones. 

    BullionStar.com – This service is all about gold trading and gold storage and accepts BCH as a valid payment method. 

How does Bitcoin Cash work?

Bitcoin Cash is basically a decentralized P2P e-cash system with the ambitious goal of becoming the leading global currency, ensuring fast payments, near-zero payments and the ability to process high transactions. Instead of 1MB blocks, 8MB and 32MB blocks were used, which can hold more transactions for miners to be processed and verified quickly. This solves the problem of long delays and high transaction fees.

The History of Bitcoin Cash

In 2017, the Bitcoin community parted ways due to two significant issues Bitcoin faced in terms of scalability – processing fees and long term. This led to a team creating a hard fork that resulted in Bitcoin Cash, a brand new cryptocurrency that many proponents saw as a logical evolution of the original Bitcoin. At the time of the fork, all bitcoin holders automatically became bitcoin cash holders. This was done to overcome the scalability issues by increasing the block size that caused the split.

Bitcoin Cash Mining – How are new coins created?

The Bitcoin Cash mining is identical to the original Bitcoin mining but with some significant differences. A larger block size requires additional computing power from the miners to crack the math puzzles, but the upside is that they get more BCH tokens as an incentive. Bitcoin Cash mining requires specialized ASIC equipment and it is recommended that you use a profitability calculator designed for crypto mining to ensure your investment yields enough return to cover the hardware costs cover and give you meaningful profits.

While the incentive for BCH is higher, the price difference between BTC and BCH means the original Bitcoin has remained more profitable. Because of this, Bitcoin Cash has reduced the difficulty of BCH mining to get more miners on board. 

 

How many coins are available, what happens when they run out?

Bitcoin Cash has a limited supply capped at 21 million BCH coins. The current total and circulating supply is more than 18.5 million, which means that BCH is close to reaching its saturation point. Once the limit is reached, there will be no more coins to be mined and the price of the coin will be determined by market forces such as supply and demand, societal acceptance, strategic partnerships, new technologies, regulations and other factors.

 

Decentralization – what does that mean?

When it comes to blockchain, decentralization is a concept that means there is no central authority such as a powerful individual, organization or government that has substantive control over how a blockchain or its cryptocurrency is operated. The only people who have decision-making power are the project stakeholders, who do so through a transparent voting process to uphold the democratic values ​​of blockchain-based currencies.

 

Invest in Bitcoin Cash 

If you are thinking about using BCH as an investment driver, you need to keep cryptocurrency volatility in mind. On the one hand, they can bring you a lot of money, but on the other hand, you can also lose all your capital. Because of this, it is important that you exercise caution and do some research about the currency before investing in it. In addition, it’s important to diversify your investments by investing in different cryptocurrencies so that you don’t put all your eggs in one basket. This way you can control your risk. Learn how to buy Bitcoin Cash here . 

 

Why should you invest?

There are many reasons to invest in BCH or any other cryptocurrency. Therefore, it is crucial that you are sure about the reason for the investment. This way you can choose the right strategy.

 

    You can invest in BCH or other cryptocurrencies to generate passive income that may not be enough to support your primary income. 

 

    You can keep your capital on a decentralized blockchain that is not under the control of regulations. 

 

    You can opt for short-term or long-term investments depending on your situation and preferences. 

 

    You may want to support the Bitcoin Cash initiative and hold BCH tokens as a donor. 

 

Price and Volatility – Why is the BCH price so volatile?

 

Since the BCH is also a decentralized cryptocurrency like all other tokens, it is not regulated by any single or central authority. There is no organization monitoring their price development and influencing them through political decisions. Because of this, market factors such as supply and demand, the introduction of new technologies, new competitors, influencer opinion, and a bull market can drive the price up or down in a matter of hours or even minutes. 

 

This volatility can be used to make quick profits, but remember that it can go both ways. Because of this, it is necessary to read the charts, news, articles and expert opinions to understand the price action before you start investing.

 

Where to Buy Bitcoin Cash

As one of the most popular cryptocurrencies, BCH is available on a variety of exchanges and trading platforms. However, you need to consider a variety of factors before choosing a platform. For example, you should look for a reputable service provider with reasonable transaction fees, great customer support, user-friendly experience, and support for multiple payment types. Some of our top picks are listed below:

 

    eToro – As one of the leading copy trading platforms, eToro is your best choice to start trading. It offers a variety of cryptocurrency CFDs, a great user interface, reasonable transaction fees, and expert crypto advice. It will be difficult for you to find a better solution.

 

    Plus500 – With years of experience in trading and cryptocurrency, Plus500 is another excellent option for new traders. It offers the right combination of affordability, variety, reliability and convenience to ensure a great trading experience. 

 

    FXTB – If you’re looking for something different where you can get a user-friendly UI with a no-nonsense experience, FXTB is one of the platforms to consider. 

 

Bitcoin Cash Wallets – Store BCH securely 

 

Once you’ve bought Bitcoin Cash, it’s time to keep it safe and you’ll need a dedicated crypto wallet for that . Wallets have security features to ensure your funds remain safe and secure.

 

What are wallets?

Crypto wallets come in two forms – hardware devices that look like flash drives and software applications that look like apps. Both types of wallets are designed to keep your BCH coins safe so you don’t have to worry about your funds.

 

What types of wallets are available?

When it comes to BCH wallet availability, there is a diverse range of wallets to choose from on the market. You can choose according to your preference.

Web Wallets

The wallets associated with your exchange or trading platform accounts are web wallets. There are also other web wallets that come in the form of a browser extension. They are easy to use as your funds are always accessible, but their security features are quite limited. 

Mobile Wallets

If you are looking for mobility and trading on the go, mobile wallets are the best option. They usually come in the form of Android and iOS apps that you can install on your device. They have a wide range of features with reasonable security. Major BCH mobile wallets include BRD, Copay, Edge, Jaxx , IF Wallet, Bitpay, Mobi, and Gemini.

Desktop wallets

These are software applications that you can install on your Windows PC or iMac to keep your BCH secure. These wallets offer advanced security features and often have a built-in trading option that many traders enjoy using. Exodus and Atomic wallets are good options if you want a desktop wallet. Badger Wallet, Electron Cash, BitPay, and Exodus are some excellent desktop wallets for BCH.

Hardware Wallets

If your number one concern for your BCH tokens is security, nothing beats a hardware wallet. These gadgets look like flash drives and lack internet connectivity to ensure that nobody can hack into them over a network. In addition, they also have 2FA and passphrase protection. Ledger Nano S /X and Trezor are good choices for storing BCH.

 

Wallet Combinations

If you want the best of both worlds then you need to use the right combination of different wallets. Most of the above wallets can be connected to each other for cross-platform and cross-device support.

Keeping the wallets on an exchange, the possible advantages and disadvantages

 

Storing your BCH on an exchange gives you quick access to it and you don’t have to deal with the added hassle of managing dedicated crypto wallets. They offer convenience and quick access. On the downside, however, they are not as secure as dedicated wallets as exchanges are vulnerable to cyber attacks and security breaches. Also, if the website goes down, you will not be able to access your funds until the issue is resolved. 

 

What are the pros and cons of Bitcoin Cash?

 

Investing in Bitcoin Cash offers investors many downsides, but there are also a few downsides.

Bitcoin Cash Benefits

The big advantage of Bitcoin Cash is the speed of the transactions. Due to this special feature, Bitcoin Cash was able to make itself popular shortly after the spin-off. In addition, the transaction is less than one cent and is therefore significantly cheaper than other cryptocurrencies. Due to the high volatility of these young cryptocurrencies, profits can be higher than with older coins such as Litecoin or Ethereum . 

Bitcoin Cash Disadvantages

 

However, this volatility can also come with disadvantages. In addition to the higher profits, the risk can also increase. The course does not have high stability and can be strongly influenced. Overall, Bitcoin Cash offers an advantageous cryptocurrency. There is a special trust in the Bitcoin blockchain, from which Bitcoin Cash can still benefit. More merchants are including Bitcoin Cash in their payment methods, securing the future of cryptocurrency.

 

The Future of Bitcoin Cash 

Bitcoin Cash investors can look positively to the future. The cryptocurrency has been successful since Bitcoin was encapsulated and has a high market capital. The currency is constantly evolving and has set itself a number of goals for the coming years. Bitcoin Cash has published a timeline showing all completed and future projects. This information is valuable to investors for future planning. In addition, the progress of Bitcoin Cash can be tracked. Improving block speed is one of the next goals in the area of ​​scaling. In order to further increase user-friendliness, transaction fees are to be reduced. The entire system behind Bitcoin Cash should also become more compact. 

 

FAQ

 

  1. Are Bitcoin and Bitcoin Cash the same cryptocurrencies? What is the difference?

Although they are the same in terms of underlying infrastructure, Bitcoin Cash blocks are 8x to 32x larger to allow for more transaction processing and verification, thereby reducing delays and network processing fees.

  1. Is Bitcoin Cash Mining More Profitable?

It’s hard to say as the prices are constantly changing. Remember that you get more in transaction fees on the bitcoin network, but you get more BCH tokens on the bitcoin cash network.

  1. Should I invest in Bitcoin Cash?

If you are planning to invest in BCH, do your homework, get expert vets, and diversify your investments by investing in different cryptocurrencies that are forecast to perform well.

  1. Can Bitcoin Cash be used for payments?

BCH is one of the most accepted tokens along with Bitcoin, so it can be used in over 4,300 retail and online stores to purchase various products and services.

  1. Is Bitcoin Cash a decentralized blockchain?

Yes. Just like Bitcoin, Bitcoin Cash is decentralized and no central authority has a decisive influence on it. Not even the government.

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JAC
JAChttps://jacmediatech.com
With 7+ years in blockchain, I lead teams to implement tech solutions. As Creative Sound Director at SpaceCatch, I drive web3 innovation for artists. Simultaneously, as Board Advisor and Investor Relations Manager at EarthTones, I leverage blockchain and gamification to enhance global music experiences. My role involves utilizing digital marketing strategy and transformation expertise, market research, and analysis skills to maintain strong investor relationships, identify opportunities, and contribute to successful fundraising efforts. My goal is to empower artists within the web3 and NFT space, driving innovation and maximizing their potential.