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Your own bank on a smartphone or what is Bitcoin Cash and is it a good investment?
This cryptocurrency has many names: Bitcoin Cash, Bitcoin ABC, BCC, BCH, BTCC, Bcash – it’s all the same. There are constant disputes around this cryptocurrency and they do not subside even today. Many cryptocurrency owners still cannot explain the difference between Bitcoin and Bitcoin Cash, but we have figured it out and will explain everything to you.
Bitcoin Cash (BCH) was launched in August 2017 as a result of a hard fork of the Bitcoin (BTC) blockchain. A hard fork is essentially a blockchain divided into two parts, each of which becomes its own cryptocurrency with its own unique blockchain.
Unlike a soft fork, which is a blockchain update where only one of the parts of the blockchain that is split remains valid. Thus, when a fork occurs, anyone holding BTC will receive the same amount of BCH.
To improve network performance, the Bitcoin community decided to initiate SegWit2x, a mandatory blockchain update that should be supported by more than 95% of miners. At the same time, 1% of miners rejected the decision to update and united in a separate bitcoin fork called Bitcoin ABC. Now this currency with its updates functions in parallel with the original bitcoin.
Since then, the Bitcoin Cash project has evolved rapidly, adding new features and increasing the amount of data that can be stored in each block to 32 MB. (Bitcoin has since moved to a completely different system for calculating its transaction data.)
Bitcoin Cash has also borrowed features from other cryptocurrencies, including functionality that allows users to launch new types of tokens on its blockchain.
The most significant difference between Bitcoin and Bitcoin Cash cryptocurrencies is their approach to the overall design concept.
Bitcoin Cash developers generally believe that the growth of the BCH cryptocurrency’s value in the short term is most influenced by consumer payments. Therefore, users may find that it is more suitable for online spending.
The most significant feature of Bitcoin Cash is that the blocks in its blockchain can be larger, allowing it to process more transactions each time one is added. With the extra space available, users can avoid paying the fees used on the Bitcoin platform to prioritize during peak demand.
Creating forks is not only a solution to the problem but also a profitable business. Often, developers are more interested in profit than in solving the real problems of the existing system. In many cases, the rate of new cryptocurrencies jumps after a hard fork, which brings developers a solid income.
Although Bitcoin Cash is one of the most successful forks in this regard, no one doubts the seriousness of this project today. Ranked 4th in the cryptocurrency ranking by capitalization according to CoinMarketCap, the digital currency has every chance of becoming the fastest and most reliable payment system without a blockchain. The obvious advantages of cryptocurrencies play a role here:
Buying and exchanging BCH is as easy as buying and exchanging Bitcoin. To place the purchased cryptocurrency somewhere, you need to create a wallet with a bitcoin address. The developers did not create their own wallet, but rather offer to use the Bitcoin Core as the main storage system. This is convenient for both investors and miners – you can simultaneously store both the first cryptocurrency and its promising analog on the same wallet.
If you decide not to waste your energy on mining, there are three ways to buy BCH:
It is impossible to properly predict the future of Bitcoin Cash. Too many factors of successful development depend on humanity and the state of the global financial system. The possibility of hacker attacks or system vulnerabilities is not excluded.
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