What is Bitcoincash
Bitcoin cash, an alternate coin, was created on August of 2017 following complains by bitcoin users of the long time it took for transactions to be completed on the bitcoin block. The pioneer cryptocurrency, bitcoin, had been having issues, following its 1MB block size that made it more difficult for bitcoin owners to complete transactions fast, so it was important that a hard fork took place. Bitcoin cash, has since 2017 gone on to become the fourth largest cryptocurrency behind bitcoin, ethereum and litecoin.
Bitcoin cash (BCC) has a market capitalization of 1,480,229BTC which is $9,449,765,513 USD (November 9 2018) with 17,449,488 BCH in supply.
A total of 21 Million BCH was created on August 1 2017.
Bitcoin was created with a 1MB block size in order to prevent spam attack on the currency. But this strategy worked cause of the low demand for the coin. With increasing demand and transactions however, the small block size was incapable of dealing with the thousands of transactions going on simultaneously around the world. Some people complained of having to wait for four days before transactions were confirmed.
Early Rise of Bitcoincash
Divergent opinions on how to improve bitcoin – whether or not to increase the block size or block capacity (SegWit) – led to the creation of bitcoin cash. SegWit (Segregated Witness) was a proposal to help improve the transaction time on bitcoin. The SegWit system functions by removing the signature information from the main block, storing it outside.
This does not do anything to the transaction ID but there was a likelihood that signatures could be tampered with.
Even though using SegWit would mean more transactions on the block, it was kicked against.
This suggestion did not augur well with the bitcoin community who believed that it was going against the original idea of a single block storing the transactions information.
This led to a Hard Fork.
A hard fork is when a cryptocurrency splits into two, like a parallel universe. For example bitcoin was the “Universe 1” getting splited and forming “Universe 2”, Bitcoin cash. The transactions from Universe 1 when it splits would be automatically copied into Universe 2. So of I had coins with universe 1 before it split, I could still use it as Universe 2, but after the splitting they are both separate Universe, doing separate operations.
The bitcoin hard fork birthed the Bitcoin cash.
The new coin, BCH or BCC, was an improvement from the bitcoin classic. It had a block size if 8MB compared to the 1MB of the bitcoin classic. It also removed SegWit, which was proposed as the solution to the bitcoin classics’ problem of slow transaction confirmation.
Bitcoin cash, as a means of financial transactions and not just a value holding currency, was created to rival the likes of PayPal in speed and volume of transactions carried out.
Even though the coin provides faster rates for transactions, it is however criticised for its large block size needing bigger and expensive systems to mine. The mining community believes that with this increased mining power needed, smaller miners would soon be out of business as bigger companies who can afford these expensive systems would take over the mining.
There has however been a fall out between the two main figures of BCC, Craig White and Roger Ver, over the November 15 hard fork of Bitcoin Cash.
The feud, alleged feud, has seen the coin drop in price over the last three days – November 5 to November 8, dropping from 628.51USD to 574.43USD.
It was not accepted as a means of payment when it was initially created, merchants and companies citing fears if its acceptability. It however made its way to exchange platforms and became accepted as a means of payment when there was a High demand for the coin.
Exchangers For Bitcoincash
The exchange platforms that accepts bitcoin cash are:
CoinBase, Bittrex, Binance, Poliniex, Coinex, BOA exchange, Panda Exchange, Kraken and a host of other.
Although the coin has since grown in acceptance, it still pales behind in price and acceptability compared with bitcoin.
The proposed hard fork of BCH would give birth to Bitcoin Cash ABC and Bitcoin Cash CV. The warring parties – Wright and Ver – favour the different coins. While Ver favours Bitcoin ABC, wright favours Bitcoin Cash CV.