Bitcoin Cash (BCH) is a compelling alternative to Bitcoin (BTC), staying true to Bitcoin's original vision of creating a decentralized peer-to-peer (P2P) transaction system. Emerging from a contentious hard fork of Bitcoin in 2017, Bitcoin Cash shares similarities with BTC but offers distinct advantages in scalability, positioning BCH as a promising long-term investment.
Origins of Bitcoin Cash (BCH): Founder, Creation Date, and Team
The Genesis of Bitcoin Cash: A Divergence in Vision
Bitcoin Cash originated from a hard fork of Bitcoin in 2017. Holders of BTC received an equivalent amount of BCH, adhering to fork protocols.
Key Differences Leading to the Fork:
- Bitcoin (BTC) adopted SegWit and Lightning Network to address scalability.
- Bitcoin Cash (BCH) opted for larger block sizes (8 MB initially, now 32 MB), enabling faster transactions and lower fees.
Both networks share transaction history until August 1, 2017, after which they operate on separate blockchains. Bitcoin Cash maintains a capped supply of 21 million BCH, mirroring Bitcoin’s scarcity model.
Early Supporters:
- Mining pools like ViaBTC (first BCH block) and Bitmain (via Antpool and BTC.com).
- Developers from Bitcoin XT, Bitcoin Unlimited, and former Bitcoin Core lead Gavin Andresen.
The Face of Bitcoin Cash: Roger Ver
Roger Ver, CEO of Bitcoin.com, is Bitcoin Cash’s most prominent advocate. Bitcoin.com offers wallets, block explorers, and mining pools, actively promoting BCH adoption.
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Objectives of Bitcoin Cash (BCH)
Bitcoin Cash aims to:
- Operate as a decentralized P2P payment system.
- Solve Bitcoin’s scalability issues without relying on second-layer solutions.
- Offer faster transactions and lower fees (typically ~0.00000001 BCH per byte).
Mining Bitcoin Cash: Algorithm, Block Rewards, and Halving
- Consensus Mechanism: Proof-of-Work (PoW) using SHA-256.
- Block Reward: 6.25 BCH (halved every ~4 years).
- Block Time: 10 minutes (adjusted via Difficulty Adjustment Algorithm).
Key Upgrades:
- Emergency Difficulty Adjustment (EDA): Reduced mining difficulty by 20% if block intervals exceeded 12 hours.
- Updated DAA: Adjusts difficulty per block (post-November 2017) for stability.
Bitcoin Cash Price Analysis
- Initial Price (2017): $900.
- All-Time High (Dec 2017): >$4,000.
- Current Price (2021): ~$633.
- Market Cap: $11+ billion (Top 20 cryptocurrency).
Where to Buy and Store Bitcoin Cash (BCH)
Exchanges Supporting BCH:
- Kraken: Fiat-to-crypto trades (USD, EUR, etc.).
- Coinbase/Cointhouse: Credit/debit card purchases.
- Binance: Deposit stablecoins or use cards (VISA/Mastercard).
Secure Storage Options:
- Hardware Wallets: Ledger, Trezor.
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Pros and Cons of Bitcoin Cash
Advantages:
- Faster, cheaper transactions than BTC (~0.00001 € fees).
- Smart contract support for DeFi applications.
- Coin mixing for transaction privacy.
Challenges:
- Competition from Bitcoin and altcoins.
- Controversial reputation due to Roger Ver’s polarizing stance.
- Limited merchant adoption.
FAQ
1. Is Bitcoin Cash better than Bitcoin?
Bitcoin Cash excels in scalability and fees, but Bitcoin retains stronger adoption as a store of value.
2. How often does Bitcoin Cash halving occur?
Every 4 years, similar to Bitcoin.
3. Can I mine Bitcoin Cash with ASICs?
Yes, BCH uses SHA-256 ASICs.
4. What’s the max supply of BCH?
Capped at 21 million, like BTC.
5. Why did Bitcoin Cash fork from Bitcoin?
Disputes over scaling solutions led to the 2017 split.
Conclusion
Bitcoin Cash remains a viable P2P payment system with technological improvements over Bitcoin. However, its adoption lags behind BTC, and its controversial origins continue to polarize the crypto community. For investors, BCH presents a high-risk, high-reward asset within the top 20 cryptocurrencies.
Final Tip: Diversify your portfolio with established and emerging cryptos for balanced growth.