What is Bitcoin Cash (BCH)?
According to the Bitcoin Cash Whitepaper, BCH is a peer-to-peer (P2P) cryptocurrency for the Internet and is completely decentralized. They operate without going through any intermediary financial institutions.
In fact, the definition of Bitcoin Cash is completely similar to Bitcoin
The cause of the BCH coin
When discussing this issue, we need to look back a bit at Bitcoin. After nearly 8 years since its launch, Bitcoin has emerged a number of issues that cause conflicts in the community, especially in block size.
Specifically, Bitcoin's block size is limited to 1 MB. This causes a significant delay in transaction processing time and limits the number of transactions the network can process.
After a long period of tepid conflict, a group of people in the community led by Roger Ver and Jihan Wu decided to hard fork to create a new coin, separate from Bitcoin - which they claim was " not keeping up with the times ”.
This new coin has a block size of 8 MP in the early days. Currently the block size of BCH has increased to 32 MP.
This helps the network handle more transactions, opening the door for later competition with financial industry giants like PayPal and Visa.
Some salient features of BCH
The Bitcoin Cash platform has some minor changes. However, these changes will be the stepping stone for a race against Bitcoin later.
- Increase the block size limit
- Providing replay protection and wipeout protection, this makes the Bitcoin and Bitcoin Cash chains completely independent in all respects
- Adjusting the Proof-Of-Work difficulty in Bitcoin Cash is faster than Bitcoin
- New transaction signature
Is Bitcoin Cash transaction fee cheaper than Bitcoin?
The answer is yes". However, this only happened in the early days of Bitcoin Cash's launch. Why is that?
At the end of 2017, Bitcoin users had to pay an average of $ 28 in fees when moving Bitcoin. At the same time, Bitcoin Cash users and users pay 99.56% lower than an equivalent transaction on the Bitcoin network.
But by 2018, things were going to be very different when starting to appear hundreds of millions of dollars worth of transactions for less than 1 cent.
Some issues surrounding the Bitcoin Cash network need to ponder
Is Bitcoin Cash really decentralized?
Is BCH really decentralized when the mining system is centralized?
As the picture above, you can see if the combination of hashing power of Antpool, ViaBTC and BTC.com will be more than 50%.
This can be detrimental to any coin. Because if only the three parties decided to exploit it, a 51% attack would take place.
Hard fork without referendum
Any hard forks or upgrades in currency protocols should be polled. But the Bitcoin Cash hard fork does not.
Introducing some upgrades / forks makes BCH more competitive with Bitcoin and prevents it from being abused by miners in the event of a decrease or increase in difficulty.
However, they need to be consulted in the community and the BCH development team is almost not implemented. Because in reality, only three individuals make a decision. Those are: Roger Ver, Jihan Wu and Deadal Nix.
The total number of "full nodes" is much less than Bitcoin
Bitcoin has about 10,000 full node in operation, this is the most important factor that makes Bitcoin a decentralized cryptocurrency.
Because if a hacker wants to attack 51% of the Bitcoin network, they need to take control of more than 50% of the 10.000 nodes running worldwide.
Meanwhile, Bitcoin Cash only has about 1,200 full nodes - according to Coin.Dance
Bitcoin Cash, Bitcoin ABC and Bitcoin SV
Perhaps all of you have heard the names above. You may not know what Bitcoin ABC is but you probably know Bitcoin SV.
Before the arrival of BitcoinCash, there was a fierce debate within Bitcoin. This led to a hard fork with the appearance of BitcoinCash.
And in the same way, in a heated argument that lasted several months, Bitcoin Cash internally decided to go to a hard fork in November 11.
As a result, BitcoinCash has split into two camps: One that supports the old direction is called Bitcoin Cash ABC and the other is Bitcoin Vision (BSV).
Currently, the term you often call Bitcoin Cash (BCH) refers to Bitcoin Cash ABC. Some exchanges like Bittrex still keep the BCH character for it, some floors like Binance change their name to the new code BCHABC.
And Bitcoin SV (BSV) is no longer Bitcoin Cash. If you send the BCH to the BSV wallet it is determined to be missing, so be careful.
- What is Bitcoin SV? Overview of Bitcoin SV virtual currency (BSV)
- What is Bitcoin Cash ABC (BCHABC)? Where to buy and sell BCHABC?
BCH exchange rate
There is so much to say about the value of Bitcoin Cash, which was launched in less than a day but it has been in the top 1 most valuable virtual currencies on Coinmarketcap.
If you are interested and want to invest in BCH, you should monitor the fluctuations of the exchange rate. Virtual currency exchange rate table more than 1500 coins This real time update will help you with that.
BCH is currently supported at most cryptocurrency wallets. On our Blogtienao there are many articles introducing this issue, you can read in the forum. Electronic Wallet.
I myself am also a cryptocurrency investor. With 2 years experience, I recommend the following types of wallets:
- The most preferred is Ledger Nano S Cold Wallet: This type is costly but absolutely safe.
- Next is the wallet Trust wallet.
Or you can refer to the list of the best wallets voted by investors below. Depending on the purpose and interest, you can choose your own suitable type
In addition, if you need to trade BCH regularly, you should keep a sufficient amount on the floor to facilitate trading.
Where to buy, sell and trade BCH?
There are currently many BCH listings listed and allowed to be traded. Typically to mention as Binance, Bittrex, Huobi, Kucoin, Bitfinex, ... and nearly 20 more floors you can see squid fishing tours ok
The trading volume of BCH after nearly 3 days of launch has reached 468,142,000 USD or 170,429 BTC which is a huge number (according to statistics from Coinmarketcap).
If you want to choose an international exchange, then I recommend using Binance. Because of quick account verification and transaction time, low transaction fees.
- Guide to buy and sell Bitcoin Cash on the most prestigious Binance platform
- Guide to buying and selling Bitcoin Cash on Bittrex from A - Z
Should we invest in BCH?
The field of investment is a potentially risky area, especially for the cryptocurrency market. Therefore, whether or not to invest is only up to you.
Therefore, I hope you should take the time to study the fluctuations in price, developments around the Bitcoin Cash community, ... to make a decision.
Thus, Blogtienao has brought you the information needed to answer your questions.
Hope you like this article, do you need any information or have any questions, just message yourself on the Fanpage. Wish you a successful investment!