Investing in bitcoin and cryptocurrencies is on the rise, with 13% of the American population making an investment in 2020.
However, investing in crypto can be confusing if you don’t have all the facts. If you are interested in Bitcoin and Bitcoin Cash and would like to know the difference between the two, read on.
This short guide will break down the bitcoin facts and clear up the difference for you.
The History of Bitcoin Cash
Back in 2010, the winds of change were blowing for Bitcoin. Members of the community were already foreseeing potential problems with the architecture of Bitcoin and its future. The biggest issue was capacity and the coin’s ability to process the vast number of transactions it needed to keep pace with traditional banking methods like Visa.
For reasons that were never fully explained, the creator of Bitcoin, Satoshi Nakamoto, limited the maximum block size of the digital currency Bitcoin to 1MB. Many people debated this was because he wanted to keep the updates to the batch ledger small, limited, and as slick as possible.
However, limiting the block size determines the speed with which the code can write data into the blockchain. The 1MB limit throttled the system slowing down the rate at which it could process transactions.
The debate about the block size raged in the community for seven long years, long after Satoshi himself had disappeared from the world of Bitcoin. It wasn’t until 2017 when Bitcoin Cash entered the scene.
What Is Bitcoin Cash?
A hard fork in the original Bitcoin code gave birth to Bitcoin Cash. After implementing an incompatible rule change regarding the block size, they had two versions of Bitcoin. One was the original version and the other a new crypto asset or altcoin, which they called Bitcoin Cash (BCH).
Every user received the same number of Bitcoin Cash coins as they had Bitcoins, thereby doubling the number of coins in the system. Many major exchanges boycotted Bitcoin Cash in the first instance and refused to list it.
Since then, Bitcoin cash has grown in popularity due to its faster transaction speed. It has forked again to create two new coins: Bitcoin Cash ABC and Bitcoin Cash SV. Bitcoin Cash ABC is now considered the canonical Bitcoin Cash coin.
The Future of Bitcoin Cash
Bitcoin Cash is now one of the more significant coins available on the market. It retains many of the features and benefits of the original Bitcoin, including the same market cap.
Almost every exchange now deals in Bitcoin Cash (what was Bitcoin ABC after the 2018 fork), and all wallets support the use of BCH. Bitpay, the most comprehensive of the digital currency merchants, also supports BCH payments.
The market value for the coin is steady and rising, and in general, the future of Bitcoin Cash looks bright.
Understanding the Bitcoin Facts
There is a lot of history behind Bitcoin and the various altcoins it has created over the years. Hopefully, these bitcoin facts have helped you better understand the history behind Bitcoin Cash and have given you the confidence to start your investing journey.
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