What is Bitcoin Cash (BCH) Crypto Beginner’s Guide
Bitcoin protocol underwent significant changes on August 1, 2017. There was a split in the network that created something called Bitcoin cash.
Why is There Bitcoin Cash?
There were some internal debates taking place within the Bitcoin community over the implementation of the SegWit upgrade. This upgrade did not increase the size, but the block capacity went up. It made a change of how information was going to be stored. Some participants didn’t necessarily agree with this idea, and they were not happy with the way scaling was going either at that point, so they created this alternative to the Bitcoin. The newer version offered a block size of 8MB where it was only 1MB prior.
SegWit was excluded with the newer Bitcoin cash version of cryptocurrency. Some people thought that the whole thing was just like putting a band-aid on the problem related to the scaling of the Bitcoin. There was also concern that with SegWit enabled, the volume of transactions would reduce the existing level of importance of the Bitcoin.
The Bitcoin cash protocol difference is how difficult it can be to adjust. Bitcoin token modifies every 2016 blocks. With Bitcoin cash, it is changing every 600 seconds. That is, of course, dependent upon the power of the network. That is the only thing that is giving Bitcoin cash a chance at being successful. With bitcoin’s price value being higher, Bitcoin cash must be easier and quicker to mine. That way, more tokens can be collected in a shorter time frame making it worth more in the long run.
Available Bitcoin Cash
Exchanges including Bitstamp, Poloniex, HitBTC, GDAX, and Bitfinex all handle about 90% of the United States volume of Bitcoin cash, and that’s where it can be purchased. There were some debates and confusion early on with the introduction of Bitcoin cash, but it is now identified with the ticker symbol BCH. BCC is another symbol that some are defining it with, but Bitconnect goes by that denotation as well so that can get confusing.
Most recently, about half of the volume of Bitcoin cash came from trades out of the alternative version, Bitcoin. The South Korean “won” and the United States dollar are where the majority of demand for fiat currencies originates. The tracking of the movement of Bitcoin cash can be viewed on CoinDesk’s price tracking application.
May 15th was when another upgrade took place, and the entire network had to enable this newer version so that they could still participate in the mining of Bitcoin and Bitcoin cash. The upgrade is going to crank the 8MB capacity block up to 32MB. Also, there will be a more complicated contract capability and other time stamping, rights management, and asset creation functions.
There is no way to predict whether or not Bitcoin cash is going to last. Since the start though, the market is continuing to accept the idea, and larger retailers are taking the payments of the newer version of cryptocurrency without issue.