What Is Bitcoin Cash? – is the new coin that you should learn about. It is the offshoot of bitcoin which has become the most successful one. So how it came into the existence and what we can expect from it in the coming future.
What is Bitcoin Cash?
Bitcoin is the cryptocurrency which has been there in the market for over a decade and has become one of the best to trade. The only problem the creator had regarding it was the block size which was of only 1 MB.
So to achieve the goal of making the block size of bitcoin from One MB to Eight MB hard fork process was done. It was done in the hope that it can compete in the volume against the giants like PayPal and Visa. This process causes the formation of the new cryptocurrency bitcoin cash.
It came into the market in mid-2017 and since then it has been gaining the popularity. If you are interested in buying then you can buy it from most of the exchanges. At present, the price of the bitcoin cash is $133.37.
In the initial stages, the size of the bitcoin block was one MB. This was done to avoid the possibility of spam and DDoS-attacks. It was going well in the initial stages as there was very less traffic and the transactions were going smoothly.
The problem started when the traffic starts to rise with the increase in popularity. This was the reason people had to wait for almost four days to get the confirmation. This was the time when the developers started to search for the solution – Hard Fork.
If you do not know about the hard fork then it is the current method which is used by the developers to update the bitcoin software. In this developers split the network and form a new version of the blockchain with a different set of rules. After this, the new network and the old one existed independently.
One of the reasons for the inception of Bitcoin Cash was the high rate of the transaction fees. After the test to check which one is cheaper in a transaction it was found that the price of the transaction fee of bitcoin cash is cheaper by 99.56 percent.
This is also one of the reasons people have started to invest in the bitcoin cash rather than bitcoin.
Hard Fork Critics
In the world of cryptocurrency, there are many people who criticize the hard fork. They think that it is against the basic principle of the blockchain and contradicts ‘Code is law’ principle.
The major concern regarding the hard fork is that it will rule out the smaller miners. The whole process will be controlled by large corporations which can afford more and better equipment. This is the reason many believe it is nothing but a money-making scheme.
Invest in Bitcoin Cash or not
Even though bitcoin cash is new, the rise in the price and popularity has shown that it is the currency you can try your luck in. It is one of the major cryptocurrency in terms of the market cap.
But the problem with the bitcoin cash is similar to the bitcoin and that is – the price of the currency is also volatile. So it is better to not to invest all the money you have in the asset which is so much volatile.
Relation Between Bitcoin And Bitcoin Cash
Though the Bitcoin Cash is derived from the Bitcoin, they are completely independent. So the price of the bitcoin and bitcoin cash is not dependent on each other. The price change of each currency can change according to the demand or trend.
We hope that you have got an idea about What Is Bitcoin Cash? If you are thinking of investing in the bitcoin cash then you should do your complete research. As this is also similar to the other cryptocurrency which is very volatile and can cost you money.