What is Bitcoin Cash?

What Is Bitcoin Cash?

What Is Bitcoin Cash?

Bitcoin Cash! What an interesting name, wouldn’t you agree? Unfortunately (or luckily, depending on how you look at it), the name does not refer to swaths of paper that you can carry around in your pocket. This does not represent a real-world equivalent of digital bitcoins on the cryptocurrency market, secured by blockchain technology. No, Bitcoin Cash is a colorful name given to a fork of Bitcoin Classic. Fork, as in ‘a fork in the road’ metaphor, i.e. a split, not a metal piece of cutlery. Forks are created intentionally by hard splitting a blockchain. But the Bitcoin Cash fork is just one of many that have cropped up recently, including Bitcoin Gold, Bitcoin Diamond, UnitedBitcoin, BitcoinX and Super Bitcoin – all based on the same blockchain technology.

So, given the options, why opt for a Bitcoin Cash wallet instead for any of the other options?

Read on to find out.

Benefits and features of Bitcoin Cash

In blockchain technology, all bitcoin transactions are verified through a process called mining. Approximately every 10 minutes, a new block containing the verified information is created and added to the blockchain. The bitcoin code initially introduced a limit to the size of individual blocks in order to prevent attacks on the network. The size limit of 1 MB has since proven to be too restrictive, possibly leading to delays if the blocks reach maximum capacity for transactions within the timeframe.

On the cryptocurrency market, consensus dictates not only the cryptocurrency prices, but also which fork gets used. Bitcoin Cash has managed to attract both investors and people interested in Bitcoin Cash mining, which has led to an increase in the coin’s price. Other forks, such as Bitcoin Unlimited and Bitcoin XT, have failed to generate traction and have since fallen by the wayside of the cryptocurrency exchange.

This fork increases the size of blocks to 8 MB, meaning that the Bitcoin Cash blockchain should be able to handle a high volume of transactions, much like Visa or PayPal, solving Bitcoin’s issue of scalability. 

Bitcoin Cash Features

Bitcoin Cash Features

What is pushing Bitcoin Cash price up?

For a fork to be successful, it needs to generate enough interest and attract enough miners and investors to be competitive on the cryptocurrency market. The Bitcoin Cash fork appears to have reached that critical mass. According to a recent article on Forbes, its price has soared after becoming available for trading on Coinbase, a popular cryptocurrency exchange. The sudden change in cryptocurrency prices caused by the introduction of Bitcoin Cash has caused skeptics to theorize that the apparent interest may have been blown out of proportion by underhanded strategies such as insider trading.

After a probe was launched by Coinbase CEO Brian Armstrong to investigate the accusations, this cryptocurrency was unavailable for trading for a couple of hours on the website. However, its price soared again as soon as the vaunted cryptocurrency was re-launched, indicating that it was indeed user interest and consensus that was pushing it up. On December 20, it reached a listed price of $4,355.62 at 9:01 am PST following a 30 % price increase in just one day.

Bitcoin Cash Website

Bitcoin Cash Website

Why is Bitcoin Cash attractive to miners?

In blockchain technology, mining larger blocks require more and more computer power. On the one hand, this means that some smaller miners may end up priced out. Obviously, this means less competition for those dedicated to mining. The critics argue that this may be detrimental to the consensus-driven approach to bitcoin by putting too much power in the hands of larger companies.

Considering the recent spike in cryptocurrency prices, particularly the Bitcoin Cash price, which at one point hit $8,500, the sheer value that the mining could bring should be enough incentive to sway any prospective miner. In addition, the mining makes use of the new algorithm designed to address difficulty adjustment (the so called DAA),  which is a responsive Proof-of-Work modification preventing hashrate fluctuations from doing any damage.

Bitcoin Cash Wallets

Bitcoin Cash Wallets

How to buy Bitcoin Cash?

In order to buy Bitcoin Cash, you will need an appropriate wallet. After that, you can start buying this cryptocurrency on an open cryptocurrency exchange or from a broker with inside knowledge of the cryptocurrency market. According to bitcoincash.org, to fill up your wallet, you can opt for any cryptocurrency exchange from the following list:

  • Bittrex
  • Kraken
  • Cexio
  • OKEx
  • Houbi
  • Korbit
  • BtcBox
  • Coinfloor
  • Changelly
  • Bitstarex
  • ShapeShift
  • HitBTC

However, keep in mind that there are many more exchanges that have Bitcoin Cash in their arsenal because this asset has turned out to be extremely popular and is still on the rise.

Bitcoin Cash Exchanges

Bitcoin Cash Exchanges

The bottom line

Bitcoin Cash is fast, reliable, stable, secure and simple. Still, to ensure your own safety and to get the most out of your investment, you must take the reputation of the cryptocurrency exchange into account. Some exchanges and brokers offer smart contracts, computer protocols which verify, facilitate or even enforce the negotiation of contracts. Its blockchain, just like Bitcoin, provides a Turing-incomplete Script language that takes into account the creation of custom-made smart contracts on top of Bitcoin.

So, if you are worried about things like timelocks, multisignature accounts, escrows, atomic cross-chain trading, oracles, signature checks, hash commitments and payment channels, keep your eyes peeled for cryptocurrency exchanges that have the option of smart contracts. Or, even better, check the ones we have already reviewed!

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Author: Ben Prescott

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