Changelly.com Overall rating: ★★★★★ 4.8 based on 6 reviews
The first cryptocurrency, Bitcoin, appeared in 2009 and now it is popular as never before. Today BTC’s price is staggering and continues to grow, attracting more and more professional investors and curious enthusiasts.
However, despite the fact that Bitcoin is the cryptocurrency’s world giant, it still has some weak points. One of the main problems with BTC is scalability. It means that the network can process a limited number of transactions within a certain period of time. Due to this issue, the entire system works with significant delays.
On the contrary, Bitcoin Cash does everything to solve this. The central principle of BTC Cash is the expansion in the number of transactions processed by the system. Ambitious developers strive to make BTC Cash as powerful and fast as the largest financial companies like Visa and PayPal are.
BTC Cash was created in 2017 and since that time became the best sideline made by Bitcoin. This coin is a peer-to-peer cash and Bitcoin’s fork with improved consensus rules that ensure better scaling and growth.
Bitcoin Cash works in much the same way as Bitcoin does. The main difference in BTC Cash protocol is the way adjustment mechanism works. To maintain the blocks flow, original Bitcoin adjusts the difficulty factor of every puzzle every 2000+ blocks. While Bitcoin Cash makes adjustments every 600 seconds, considering the amount of computing power available on the network.
Due to this move, new protocol has a chance to survive. If nobody mines it, it tails off. In a word, considering the difference between Bitcoin’s and Bitcoin Cash’s price, the profitability of the latter one depends on the ease of mining. It is much easier to mine Bitcoin Cash, therefore it might be a nice alternative to Bitcoin, which is almost unobtainable for small miners. To put it simply, the price for the coin is lower but users can produce blocks easier and faster, therefore collect more coins.
The initial aim of the BTC transaction limitations was security and protection against possible hacker attacks. Long time ago, when BTC was not as popular as it is today and the number of transactions was exponentially lower, this limit wasn’t in the way at all. However, when Bitcoin grew, this limited became a problem. It caused an extension of transaction periods and some users had to wait for a couple of days for confirmation. First, users had a chance to pay additional charge to speed the process up, however this made small transactions absolutely useless. For example, paying 5 dollars for a cup of coffee required additional fee and that way price got four times higher. Your coffee for 5 dollars turned to be a coffee for 20 dollars.
Developers created a protocol SegWit2x to increase the block size and store data outside of the blockchain. However, this decision didn’t solve the problem and worked only for those who used BTC as an investment opportunity, not a payment system.
When SegWit2x proved to be useless, the developers announced a new protocol called Bitcoin ABC, a basis for Bitcoin Cash. This protocol increased the block size to 8 MB, therefore the innovation required a split from the original Bitcoin system. This way, the developers created a new blockchain identical to the original one, however with different rules and absolute independence.
This is how Bitcoin Cash appeared. This coin was adopted by the market right after developers introduced it and now it is known as the third digital currency after BTC and ETH in terms of capitalization. BTC Cash has not been on the market for too long, but it has a lot of fans. Today, this is one of the most valued cryptos available.
Bitcoin Cash strived to become a solution to all problems of the original Bitcoin and its popularity still grows. Bitcoin Cash is Bitcoin’s branch, however it doesn’t depend on BTC’s price.
As every other digital currency, Bitcoin Cash had to make an effort to be seen by cryptocurrency community. The developers did their best to solve one of the main BTC’s issues with limited and slow transactions by creating a new coin and this was willingly accepted by the market. Today, key industry participants, exchanges, investors and traders recognize that Bitcoin Cash has exceeded their expectations. Today, Bitcoin Cash has its attention and high demand. We believe, that this coin will rage on and meet the most ambitious targets.