When it comes to cryptocurrency, everyone has heard of Bitcoin. A lot of people are not aware that different cryptocurrencies exist nowadays and so it can come as a surprise. Nonetheless, it is true that in the past few years a number of new cryptocurrencies have come to the surface and have actually managed to achieve success in their own right. While some of these new ones emerged through freshly launched platforms, there are some that had the distinction of being ‘forked’ by Bitcoin. This means that they had the same structure as the pioneer cryptocurrency, but had a few modifications made to their code.
This need for modified and newer cryptocurrencies based on Bitcoin emerged due to the transaction processing and scaling issues that surfaced in Bitcoin. The network had been developed on a foundation that worked for limited users. However, the entire network crumbled due to the high usage and demand and this led to higher transaction costs and longer transaction times. The ‘hard forks’ aimed to resolve these issues and their new ventures used Bitcoin’s name for branding purposes. In this way, they could tell people that their crypto was based on Bitcoin, but had a new public blockchain to provide upgrades.
One such introduction was Bitcoin Cash, a hard fork that separated itself from the core blockchain for addressing the issues that Bitcoin users had to face. Since its inception, Bitcoin Cash has gotten enough support from its community that it has joined the list of the top five cryptocurrencies in the world by market capitalization. Moreover, it has also been listed on numerous reputable cryptocurrency exchanges. If you are trying to decide whether you want to add it to your investment portfolio or not, you should know more about Bitcoin Cash, its services and functionalities and its overall value proposition.
What is Bitcoin Cash?
Introduced in August, 2017, Bitcoin Cash is was hard forked from the original Bitcoin Core blockchain. The idea of forking out came out when the developers behind Bitcoin Core revealed their plans of implementing Segregated Witness (SegWit) on the blockchain. This gave rise to some concerns in the community. A small part of the community believed that Bitcoin’s problems wouldn’t be solved by this implementation. Comprising mostly of developers from China, the team proposed that an increased block size should be to make some significant change for the pioneer cryptocurrency, which could reduce transaction costs and time.
But, the larger part of the Bitcoin community wasn’t very open to this idea and it was tabled. However, the supporters of the idea weren’t willing to back out and it fueled their resolve when they received support from some popular figures in the industry like Bitcoin investor Roger Ver. Thus, the project went on ahead and on August 1, 2017, Bitcoin Cash materialized into a separate and tangible cryptocurrency. Since then, it has received a lot of criticism from the entire cryptocurrency community. According to the naysayers, Bitcoin Cash is not very different from Bitcoin because it operates on the same blockchain, the same Proof-of-Work (PoW) consensus and boasts the same capabilities.
However, it would be unfair to say that Bitcoin Cash doesn’t have anything to offer because it does provide a lower transaction fee, as compared to Bitcoin, even if the difference is marginal.
How Does Bitcoin Cash Work?
The primary difference between Bitcoin and Bitcoin Cash exists in the block size. Even though it has cash in its name, the cryptocurrency doesn’t deal with fiat transactions on the network and doesn’t change it to cryptocurrency via collection points, such as the Stellar network. Bitcoin Cash boasts the same SHA-256 has function and its number of total coins is also 21 million like Bitcoin.
Exchanges for Trading Bitcoin Cash
Bitcoin Cash has been holding its own in the cryptocurrency world and you can easily measure this by the fact that it is listed on numerous cryptocurrency exchanges. Some of the top ones are:
- Coinbase: This exchange is synonymous with crypto trading, which is mostly because of its easy-to-use mobile app. You can use your credit card to buy Bitcoin Cash and easily take part in trade transactions even if you don’t have extensive knowledge of the crypto space.
- Binance: Founded in 2017, Binance is also a success story. It is one of the most widely used and recommended exchanges for crypto trading. With extremely low fees and high security, Binance is a great solution for many who wish to trade Bitcoin Cash.
- Kraken: This particular exchange has been part of the crypto industry for a few years, which has made it a propitious choice for skilled traders. You can easily use this exchange for purchasing Bitcoin Cash through fiat transactions.
- Bittrex: In the exclusive crypto industry, this exchange has managed to craft a niche for itself. Bittrex is one of those exchanges that put a great deal of emphasis on adhering to local laws and transparency. This makes it a great choice for anyone who wishes to trade Bitcoin Cash without worrying about violating any regulations.
- Poloniex: Since it was acquired by Circle, Poloniexhas definitely upped its game and it is definitely a viable platform for making Bitcoin Cash transactions.
Wallets Supporting Bitcoin Cash
You will also find a number of popular software and hardware wallets that support Bitcoin Cash. Some of the top ones are:
Value of Bitcoin Cash
Bitcoin Cash is one of the top 5 cryptocurrencies in terms of market value and its current price, at the time of writing, is $5,092. Other than its monetary value, Bitcoin Cash is undoubtedly a good instrument of value and it hold up to the use of ‘Cash’ in its name. As compared to other cryptocurrencies that also made their debut alongside it, Bitcoin Cash has made its way to some of the top exchanges in the market while they are still trading on obscure exchanges. This makes Bitcoin Cash very liquid and it is a viable choice for anyone who wants to invest in cryptocurrencies.
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