If you’re new to the world of cryptocurrency, you will be asking yourself, what is bitcoin cash, what is its usefulness and how does it work.
This is usually the type of question newbies do ask in cryptocurrency.
I’ve tried to cover and give you an insight on what bitcoin is, bitcoin cash, and how it works and the difference between bitcoin and bitcoin cash.
So if you really want to know what is bitcoin cash, you need to read this post from the beginning to the end ad it will be helpful to understand what it is all about.
Before going further into this topic, I will like you to try and understand what bitcoin is and how it came about in today’s world.
What is bitcoin
Bitcoin or BTC as you can also call it is a digital currency that can be used in payment of goods or products just like any other currency we have in the world today.
Bitcoin is usually used for payment of online products though not all online stores do accept it. Aside from online payment, you can also use it to make the payment offline, but also many countries of the world don’t see it as a legal tender for payment.
Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer.
People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people. Every single transaction is recorded in a public list called the blockchain.
In some countries for example here in Nigeria, you can’t make a payment on any of our online shopping stores using the bitcoin, it wholly prohibited.
Aside from not using bitcoin in many online stores in Nigeria, that doesn’t mean you can’t have a bitcoin account. Of course, you can, you can receive payment through bitcoin and then convert it to the Nigerian naira.
If you have a bitcoin account, you can use it to pay for services online in any foreign websites or online stores that accept bitcoin.
You might be asking how do I get bitcoin in my account?
There are ways which you can get bitcoin, and they are;
1. Through Money Exchange
This is one of the common methods people use in order to get bitcoin for themselves, by exchanging their real money with bitcoin.
This method involves you knowing the exchange rate of the currency you want to use in buying the bitcoin, and further going to bitcoin sale websites to exchange it. You can also use bitcoin peer-to-peer trading to exchange bitcoin for cash.
2. Making use of bitcoin as a means of payment
This is only applicable to people that sell products online. For example, you’re into web hosting and I want to make an order from you, for a period of one year.
In payment, you can ask me to make payment using bitcoin cash, which is equivalent to the said amount. This gives you the opportunity to have the bitcoin without visiting any Bitcoin peer-to-peer trading.
These are the two best ways to get bitcoin cash for yourself that I can come to you.
What is bitcoin cash
Having given you an insight on what bitcoin is all about, now is to further understand what is bitcoin cash and how it works.
BCH was created in 2017 because of the increasing need to accommodate transactions per second contributed to a push by some in the community, in order to create a hard fork to increase the block size limit.
According to a Hong Kong-based newspaper, said that;
Bitcoin cash is like a new version of Microsoft Word, which generates documents that can no longer be opened via the older versions.
You can say that bitcoin BHC was created, in order to modify some parameters which include the blockchain.
However, this really didn’t go down well with many bitcoin miners as they argued that it favors the use of its currency as a medium of exchange for commerce, while the other supporting faction view bitcoin’s primary use as that of a store of value.
In as much of the controversy that surrounds the bitcoin cash, it still holds ground and this is because of key figures that are into it.
For example Roger Ver, a pioneer in the Bitcoin ecosystem and a major investor who helped to advertise and promote Bitcoin in its early years.
The main is said to be a strong supporter of the Bitcoin BCH, even saying that it is the real Bitcoin in accordance with Satoshi Nakamoto’s original vision. But that doesn’t take the fact that not all people value the bitcoin cash and even in 2020.
Having known what is bitcoin BCH and that it is different from the original bitcoin that started almost ten years ago, let’s look further into the difference between bitcoin and bitcoin cash.
What is the difference between bitcoin and bitcoin cash
In as much there is a dif between the two cryptocurrencies, it doesn’t mean that it is too much. So far, the dif I’ve noticed between the two is just minimal.
The major difference is in block size, the bitcoin cash seemed to have a larger size of the blockchain after it was increased to 32mb.
Blockchain is a revolutionary ledger-recording technology.
It makes ledgers far more difficult to manipulate because the reality of what has transpired is verified by majority rule, not by an individual actor.
Bitcoin Cash can, therefore, accommodate approximately 15 times more transactions than Bitcoin, which has a capacity of around 1.8MB after the implementation of SegWit.
Bitcoin Cash is thus able to process transactions more quickly than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower.
Another difference between the bitcoin and the bitcoin cash is that the former can easily handle many more transactions per second than the Bitcoin network can.
This is actually the argument of the key figure bitcoin miners that lead to the creation of the bitcoin cash.
Another difference that I notice is that bitcoin cash seemed to has a6faster transfer times compared to bitcoin itself
However, you don’t have to wait for the 10 minutes it takes to verify a Bitcoin transaction like it uses to be.
BCH can handle more transactions per second. This means that more people can use BCH at the same time than they can with BTC.
Though bitcoin cash is really waxing strong, especially gaining some investors, you can’t still compare it to the bitcoin itself. It will really take time before they have investors or miners.
I will always like the bitcoin cash for it’s a faster and cheaper asset to use for transacting on the blockchain.
This is where I wrap it up on what is bitcoin cash and also the difference between bitcoin and bitcoin cash, and the reason the later was created in 2017.