Should You Move to Bitcoin Cash?
We have witnessed the rise of Bitcoin these recent years. Because of this, several cryptocurrencies have come out as well, either rivaling Bitcoin or serving another function altogether. One of these cryptocurrencies is Bitcoin Cash.
Bitcoin Cash aims to be a peer-to-peer electronic cash that promises decentralization and fast transactions. It is a continuation of Bitcoin after debate in the Bitcoin developer and miner community and has since become a separate cryptocurrency altogether.
While Bitcoin Cash is a very new cryptocurrency, it’s starting to gain miners and users, some of them coming from Bitcoin. But before you start deciding whether to invest in Bitcoin Cash, here’s a look at what Bitcoin Cash is.
The Creation of Bitcoin Cash
Bitcoin Cash is defined as a “hard fork”, meaning Bitcoin Cash resulted from a new set of rules made by some developers from the Bitcoin network. Although Bitcoin Cash is a continuation of Bitcoin, it can no longer apply the rules of Bitcoin, making it a new cryptocurrency.
Why was there a need to create Bitcoin Cash? It’s because Bitcoin network developers and miners debated on how the network can grow and become more powerful as the number of users and transactions increase?
The way Bitcoin transactions work is that miners add a verified transaction to the blocks in the public ledger or the blockchain for the transaction to be deemed complete. When Bitcoin was first launched, its developers placed a 1MB limit on the block size so that no spam transactions can come in.
Soon, Bitcoin became popular, and with it came the increase in the number of users and transactions. The block size limit is not enough to handle all the transactions coming at once, which caused delays in sending and receiving bitcoins. Because of this, miners started implementing the “replace by fee” system where Bitcoin users pay high fees so that their transactions can be prioritized. This, of course, goes against Bitcoin’s features of very low transaction fees.
Bitcoin developers and miners have proposed ways to process transactions faster. The most common suggestion was the creation of forks. Simply put, Bitcoin will be split into two potential paths. One path follows the software rules that Bitcoin is still using (soft fork), while the other path is either a software change or upgrade (hard fork).
As a result, Bitcoin Cash was launched in August 2017. It inherited Bitcoin’s transaction history, but all later transactions became separate.
How You Can Benefit from Bitcoin Cash
Bitcoin Cash shares the same features as Bitcoin in terms of decentralization, ease of setup, anonymity, and fast transactions. Bitcoin Cash users also enjoy the following benefits:
1. Faster transaction time
Bitcoin Cash has an increased block size limit of 8B, allowing miners to take in and confirm more transactions. Bitcoin Cash users don’t have to wait for minutes before their transactions can be verified.
2. No “replace by fee” feature
Because Bitcoin Cash as an increased block size limit, miners will no longer have to charge users transaction fees for prioritized verification of transactions.
3. Replay and wipeout protection
All hard forks are prone to replay and wipeout attacks. Simply put, transactions are maliciously disrupted and repeated in another blockchain. Bitcoin Cash has a replay and wipeout protection feature that allows its users to make transactions with little to no disruption from the original Bitcoin chain.
4. New transaction type
Bitcoin Cash provides new transaction features that provide the replay and wipeout protection, that improve hardware wallet security, and that make validation of transactions faster without sacrificing the security of the transaction.
How to Get Bitcoin Cash
If you have Bitcoin at the time of Bitcoin Cash’s launch, then you are automatically a Bitcoin Cash user. After the split, all transactions between Bitcoin and Bitcoin Cash become separate. If you are a Bitcoin user looking into getting Bitcoin Cash, or if you are new to Bitcoin Cash, here are some ways to get the cryptocurrency:
1. Get a Bitcoin Cash wallet.
Bitcoin wallets don’t accept Bitcoin Cash, so Bitcoin users have to get another separate wallet for Bitcoin Cash. The wallet options are the same—you either get a “hot storage” wallet (a desktop, online, or mobile wallet) or a “cold storage” wallet (a hardware or a paper wallet).
2. Go to a Bitcoin Cash exchange.
There are several Bitcoin Cash exchanges on the Internet where you can exchange your fiat money or your bitcoins for Bitcoin Cash. The number of Bitcoin Cash exchanges is still limited but is growing in number.
3. Mine Bitcoin Cash through mining pools or cloud mining.
The process of Bitcoin Cash mining is the same as mining Bitcoin. If you do not have the money or the space to purchase equipment to mine on your own, you can join mining pools and split the rewards with other miners. If not, you can purchase mining power in a mining corporation and earn Bitcoin Cash based on your purchase.
4. Earn through a Bitcoin Cash faucet.
If you want to earn Bitcoin Cash without the difficulties of mining, there are several Bitcoin Cash faucets available online. All you have to do is complete a task (such as completing a captcha) on that website and they will dispense a very small amount of Bitcoin Cash.
What is Bitcoin Cash is Worth
Bitcoin Cash was worth US$250 when it first launched. At present, Bitcoin Cash’s value US$1,612 and is the fourth most expensive cryptocurrency in the world.
We highly suggest moving to Bitcoin Cash if you’re using Bitcoin or another cryptocurrency. Since its launch, more users and miners are coming in, and resources such as exchanges and wallets are growing in number. You are also assured of faster transaction time and more secure transactions when you use Bitcoin Cash.
To know more about Bitcoin Cash, visit https://www.bitcoincash.org/.