Since the meteoric rise in the value of Bitcoin in both 2017 and 2020, there have been endless headlines, trends, talks, and different opinions by experts about Bitcoin, the father of all cryptocurrencies. Bitcoin has been in the spotlight for years now and is widely known as the biggest cryptocurrency. Most people, however, don’t know what Bitcoin Cash is.
So what is Bitcoin Cash? For some background, Bitcoin Cash or BCH is both a payment network and a cryptocurrency. It was initially created as a result of a hard fork with Bitcoin in December 2017 to improve the scalability of Bitcoin. Though Bitcoin Cash is a fork from Bitcoin, it is important to note that Bitcoin Cash wallet and Bitcoin wallet can’t be used interchangeably. Doing so could result in losing all of your funds.
What is Bitcoin Cash?
Bitcoin Cash (BCH)is a peer-to-peer electronic cash cryptocurrency that is created to cover the technical gaps of Bitcoin. It was created in 2017 by Bitcoin miners and developers that were concerned with the scalability of Bitcoin. It was considered a continuation of BTC and aimed to increase the number of transactions that could be processed.
Currently, on CoinMarketCap, Bitcoin Cash has a market cap of 10 billion USD and a market price of over $600. And like Bitcoin, its total supply is capped at 21 million BCH.
Bitcoin Cash, like Bitcoin, is considered an asset for store of value and according to some people, it is regarded as a commodity.
How did Bitcoin Cash come about?
BCH first came about as a continuation of Bitcoin. Bitcoin which was created by Satoshi Nakamoto in 2009, enables borderless and P2P transactions without an intermediary. But, it is not without its limitations. It is slow in the processing of transactions compared to traditional credit cards and has scalability problems. Bit This is due to the attention and the increase in the global adoption of Bitcoin. As this happens, transaction confirmation time has increased. The Bitcoin network could only process seven transactions per second, which lead to a number of unconfirmed transactions.
This challenge caused a rift between the miners and developers in the Bitcoin communities and hence Bitcoin Cash was created. To put it simply, Bitcoin Cash was created to solve the problems and limitations of Bitcoin. It is a peer-to-peer electronic transaction that is faster and cheaper. Bitcoin Cash was created in 2017. A year later, around November 2018, Bitcoin Cash also underwent its hard Fork. The result of the Fork birthed Bitcoin cash SV (Satoshi Vision) and Bitcoin Cash ABC. The Fork was due to a rift between the Bitcoin Cash community and the introduction of smart contracts.
Craig Wright led the team behind the creation of Bitcoin Cash SV (Satoshi Version). The team believes in the roadmap of Satoshi and rejects the idea of smart contracts into its blockchain. After the Bitcoin Core community rejected the increase of bitcoin block sizes, a new cryptocurrency was created. The name was actually Bitcoin Unlimited before Bitcoin Cash was ultimately decided on.
After the Fork, anyone who had Bitcoin was given or received an equal amount in Bitcoin Cash.
How to trade Bitcoin Cash (BCH)?
You can buy Bitcoin Cash in Australia by creating a trading account with Swyftx. Swyftx is a cryptocurrency exchange that allows users to buy, sell and trade Bitcoin Cash and other cryptocurrencies. Below we’ve listed the steps you’ll need to take to Buy Bitcoin Cash with Swyftx.
Step 1: Visit www. Swyftx.com
Step 2: Create an account by providing your name, email address and phone number
Step 3: Verify your identification (shouldn’t take longer than 3 minutes)
Step4: Deposit AUD via bank transfer, POLi, PayID, or debit/credit card.
Step 5: Enter the amount of BCH you want and confirm your order.
Bitcoin vs. Bitcoin Cash: What’s the difference?
In the business world, when a company splits off a section of its business to create a new independent company, this is called a spin-off. In cryptocurrency, this is referred to as a ‘hard fork.’ Bitcoin Cash came about as a result of a Bitcoin hard fork.
One of the main differences between Bitcoin vs. Bitcoin Cash is the philosophical definition. There is some disagreement of what exactly Bitcoin should be used for. A section of the Bitcoin core community believes it should be regarded as a store of value and consider as ‘digital gold.’ The other party thinks it should be used for transactional purposes as a medium of exchange.
Another difference between the two digital cryptocurrencies is that the Bitcoin Cash transaction fee is cheaper than that of Bitcoin. The fee Bitcoin Cash charges per transaction is less than $0.30, while Bitcoin could charge more than $1 and above. In fact, during the epic Bitcoin bull run in 2017, the average Bitcoin transaction fee reached close to $60 USD. But recently, according to Bitinfocharts, the average Bitcoin transaction fee is $15 USD. At the time of writing is the Bitcoin Cash transaction fee is just 0.003 USD.
If you are thinking of saving yourself some money, it is a no-brainer that you would want to use Bitcoin Cash.
Transaction Confirmation Timing
No one wants to wait for several minutes for volatile crypto. Because Miners have to verify every single transaction and it also has to go through a series of confirmations. This process could take between 1 minute and an hour. However, the average time for a Bitcoin transaction is 10 minutes. It could even be more than that for a larger volume of transactions. Using a lower transaction fee could get your transaction delayed by miners.
You do not need to wait 10 minutes for a transaction to go through with Bitcoin Cash, which has a faster confirmation time than bitcoin. This is why Bitcoin Cash was created.
The Number of Transaction handles per second
After the Fork, Bitcoin Cash blocks were increased 8x the size of Bitcoin, which is 1 megabyte (MB). This means BCH has 8 MB. A year later, BCH was 4X the block size. Bitcoin Cash blocks had 32 MB, which allowed for more speedy handling of transactions than the Bitcoin network. The Bitcoin network can only process 7 transactions per second. To put it in perspective, credit card company, Visa, processes over 1500 transactions per second.
An increased block size means Bitcoin Cash can process more transactions per second than BTC. It is clear that Bitcoin Cash has faster, cheaper, and handles more transactions per second than Bitcoin, yet it is yet to gain the widespread public attention that bitcoin has.