Bitcoin Cash is a cryptocurrency that forked from the original Bitcoin blockchain in 2017. While the split occurred over philosophical differences regarding how best to scale the transaction numbers, the coin has since claimed its own corner of the crypto world.
Bitcoin Cash first appeared in August 2017 when it “forked” away from the original Bitcoin blockchain. Today, you can buy two types: Bitcoin Cash ABC (just “Bitcoin Cash”) and Bitcoin Cash SV.
The original Bitcoin blockchain was designed as a decentralized financial system to cut through the legal and financial red tape of modern banking. But as Bitcoin gained popularity, it became renowned as a risk-loving investment vehicle.
As a result, more people piled onto the blockchain. Scalability issues emerged, with each block in the chain limited to just 1MB of information. Fees and wait times to verify transactions grew.
Developers and miners proposed two solutions to the problem: making the blocks bigger or storing less data per block. But when they couldn’t agree on a change, Bitcoin Cash forked away to form its own currency, blockchain and rules.
Bitcoin Cash aimed to solve its scalability problems by increasing the size of each block to 8MB. (Later increased to 32MB.) Larger blocks contain more information, allowing miners to process transactions quicker and cheaper.
The blockchain also came with a new currency, Bitcoin Cash, which debuted at $900 per coin.
However, Bitcoin Cash developers soon fought over new philosophical differences: namely, whether to add smart contracts to the blockchain. When developers couldn’t agree yet again, Bitcoin Cash forked into Bitcoin Cash ABC and Bitcoin Cash SV.
The primary differences between Bitcoin and Bitcoin Cash are their block sizes, as well as ideals on how to incorporate emerging blockchain tech. And while the two coins originally shared a mining algorithm, Bitcoin Cash soon developed its own to decrease competition for mining power.
But the two blockchains and currencies share several similarities. For instance, they both rely on a proof-of-work consensus mechanism to “mint” new tokens. Both also cap their lifetime supply at 21 million coins, ensuring liquidity while supporting value.
The process of buying, selling or transacting with Bitcoin Cash is just like other cryptos.
You can also sell Bitcoin Cash directly to another person by sending tokens to their wallet’s public address in exchange for another crypto or $USD. (Or have them send you Bitcoin Cash, instead.)
Despite its link to the popular Bitcoin, Bitcoin Cash remains something of an unknown. And as a whole, cryptos remain risky investments that see a lot of volatility.
Fortunately, if you want to invest in cryptos without worrying about research or the fast-changing landscape, you have options. Q.ai’s Bitcoin Breakout Kit lets you capitalize on the volatility of crypto without committing tons of time (and worry) to your portfolio.
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