Bitcoin Cash was launched in August 2017 and since become Bitcoin’s most popular cryptocurrency that has forked from bitcoin network. The reason of this fork is to increase the block size and process more transaction per second. Bitcoin’s maximum block capacity is 1MB, at this current time allows to process 3-7 transactions per second and implications of congested blocks, means paying high fees. Bitcoin’s cash on other hand maximum block capacity is 8MB witch is allowed to process around 60 transactions per second and fees 99% cheaper than original bitcoin.
Bitcoin cash is well known and fourth largest cryptocurrency in terms of the market capitalization today I will give you some background about Bitcoin cash compared Bitcoin cash to Bitcoin and give you my opinion if you should invest in it Bitcoin first appeared almost nine years ago and currently is getting a lot of attention from the mainstream media and big interest of retail investors it’s not only words first but also most expensive and most popular cryptocurrency that being said it’s not perfect one of the most biggest issues for cryptocurrencies has always been its scalability most specifically it’s been the size of the block of transactions which was limited to one megabyte this limit caused a substantial delay in transactions processing time and limits the number of transactions the network can process Bitcoin cash was a different thing in differs from the other version which allowed to increase the block size from one megabyte to eight megabytes its overall goal is to increase the number of transactions that can be processed by the network hoping that the Bitcoin cache will be able to compete with the volume of transactions like industry giants PayPal and visa transactions per second visa is able to process up to , transactions per second but average daily transactions is around , Bitcoin with the maximum capacity of one megabyte per block size is able to process three to seven transactions per second with concussion at the hand with eight times larger block size is able to process around transactions per second we can see that the Bitcoin and even between cash don’t even stand close as a electric payment processing system compared to centralized payment processing company visa the story of hard fork Bitcoin cash was launched in August and since became bitcoins most popular cryptocurrency that has worked from the Bitcoin network
The reason of this work is to increase the block size and process more transactions per second on other hand Bitcoin score one megabyte limit for the size of every block was originally implemented is to lower a possibility of potential spam and security issues as Bitcoin grew more and more popular one megabyte limit start causing blocks to pile up which extended the transactions time the situation got out of hand around May when one user reported that he was waiting for confirmation for up to four days users had a chance to pay high transaction fees to speed up the confirmation but this approach basically prevent bit going to be convenient payment method especially when it comes to smaller transactions for instance paying for a sandwich or a cup of coffee with BTC just simply wasn’t working anymore as a three dollar coffee will in queue transaction fee of more than dollars and of course nobody is going to do that Bitcoin community came up with the possible solution to this situation a segregated witness or a segment a segregated witness solution implied storing some of the information in separate files outside of the blockchain developers claim that it would free up a lot of storage space the black will feed more transactions and the confirmation time will decrease significantly
many people believed it was just more complicated temporarily solution when compared to the bitcoins white paper build super electronic cash system as unlimited approach a team of developers decided to abandon the sacred protocol and increase the block size limit so megabyte as such a drastic change required the creation to split from the original Bitcoin network it was announced the hard work will take place on August for those of you who don’t know a hard Fork is the only currently known method for developers to update Bitcoin software developers split the network and essentially create a new block chain with a different rule the original and forked version of cryptocurrencies have identical black chains all the way up to the split accurate from their own the two networks exist independently after the split happened everyone who held bitcoins before the hard fork received the same amount of bitcoin cash tokens the new cryptocurrency was quickly adopted by investors as by the end of his first day bitcoin cash became third largest cryptocurrency behind Bitcoin and etherium the Bitcoin cash is much cheaper to use than Bitcoin
A test conducted in December showed the Bitcoin cash transaction was percent cheaper than the equivalent transaction on the original Bitcoin network at the very end of people Warpaint’s one eight dollars on average in transaction fees to move their Bitcoin tokens well not everything is so great there are some negatives about hard fork in cryptocurrency world hard fork is always quite disturbing event and many people believe that it goes against very principle of the immutability of the blockchain and contradict the code is law principle when it comes to this particular hard fork many users are worried that the computer power required to process large blocks will price out smaller miners which may lead to decision making power being centralized in the hands of large corporations that can afford more and better equipment finally as everyone held bitcoins before the split received an equivalent amount of Bitcoin cash tokens some people was the concern that this plate was nothing
but the money-making scheme in fact hard fork did create situations similar to double spending problem as it made conducting two transactions from the single wallet using the same set of keys possible so far we have seen positives and negatives about Bitcoin cash so now the question is should I invest in Bitcoin cash Bitcoin cash has been around for quite some time and it has already established itself as extremely strong cryptic see at the time of this video it’s a world fourth cryptocurrency in terms of the market capitalization behind Bitcoin aetherium and ripple so many people
Bitcoin cash became the answer to everything that was wrong with the original Bitcoin and it keeps getting new followers day by day generally our investment and trading move involves risk you should conduct your own research when it comes to making this decision where can i buy bitcoin cash as a bitcoin cash is relatively new cryptocurrency not every major exchange supports it yet the most powerful exchange that supports Bitcoin cash is coinbase if you’re interested use the link below and you will get dollars when you spend $ or more where can I store Bitcoin cash you can store Bitcoin cash in various mobile and desktop wallets such as Jack’s and Bitcoin unlimited but I would recommend hardware wallets such as ledger nano ass and treasurer so what do you guys think about Bitcoin cash does it solves Bitcoin scalability problem leave your opinion in the comment section below
