About Bitcoin Cash
Getting a cryptocurrency for free for owning at least a part of BTC seems like something fantastic for most investors. In this way, in August 2017, the issue of Bitcoin Cash took place — a hard fork of the main cryptocurrency, the separation of which was carried out after the vote for the introduction of the SegWit2x protocol.
As a result, all BTC owners received a similar amount of Bitcoin Cash to their wallets. On the first day of trading, the Bitcoin Cash price soared to $500 per coin, which allowed everyone who bought bitcoins in advance to quickly get rich.
The Bitcoin Cash fork is the largest and most high — profile in the history of the digital currency. If most of the forced "branches" of the blockchain do not find wide support from the community, then in 2018 BCH even began to be traded on the exchange. To understand where the hard fork got so many fans, let's analyze what Bitcoin Cash is and touch on the history of the cryptocurrency in more detail.
What Is Bitcoin Cash (BCH)?
Bitcoin Cash is a payment system of the same name and a cryptocurrency with the designation BCH, which appeared on August 1, 2017 as a fork of BTC. The BCH coin is actively traded on cryptocurrency exchanges and is used as a measure of the value of many commodities. Unlike the network of the first cryptocurrency, the block size in the bitcoin cache is 32 MB. This partially solves the problem of scalability, making the cryptocurrency a worthy alternative to bitcoin.
Hard Fork – a radical change in the algorithms and code base of the cryptocurrency. This leads to the creation of a new payment system via an offshoot of the old blockchain, as the old information about the blocks will conflict with the new software. A hard fork occurs when there are disagreements within the community, when there is no consensus about the update of the payment system and the further future of the project.
Bitcoin Cash is a hard fork of the first cryptocurrency. It turned out that this is a new cryptocurrency based on the Bitcoin protocols. It uses the same scheme of operation, but has become a kind of offshoot of the Satoshi Nakamoto blockchain. That is, Bitcoin Cash and Bitcoin transactions work and are built on the same principle, but are recorded in different chains.
The reason for the appearance of Bitcoin Cash is the controversy in the crypto community. Although the majority of miners (up to 95%) agreed with the proposal to improve the cryptocurrency, part of the community remained dissatisfied. Users felt that the new protocol was introduced to delay the solution of the scalability problem. This allowed miners and investors not to lose money due to the fall in the price of BTC on the background of news about the update. The solution was a hard fork created by part of the Bitcoin development team and a former Facebook chief engineer.
Today, Bitcoin Cash is no longer a minority solution. Users began to trust the new currency and appreciated the advantages of large blocks. The network is constantly being updated, and the development team is actively correcting the shortcomings of the Bitcoin network.
We advise you to follow Bitcoin Cash news, as it is a very promising project.
Buying Bitcoin Cash
As you understand, Bitcoin Cash has become quite popular independent cryptocurrency, which is open to trading not only on major exchanges. You will find this token available for purchase on less popular sites.
However, we advise you to choose proven exchangers with a large number of users, reviews and authority in the market. The Bitcoin Cash team advises buying BCH on Coinbase, Bittrex, Kraken, Bithump, and Godex exchanges. Godex is one of the leaders that provides total anonymity of the user, does not require registration and guarantees the security of the transaction.
With Godex, you can convert another cryptocurrency for Bitcoin Cash or vice versa. However, to buy cryptocurrency for cash, you need to use another platform. And it is better to buy Bitcoins for USD, and then convert them to other tokens.
The current Bitcoin Cash price at the end of March exceeds the $ 500 mark – a very impressive rate.
Circulation of Bitcoin Cash
The maximum number of Bitcoin Cash that will be issued once is 21 million. At this point, the token issue will end forever. When this happens, miners will instead be rewarded with a small fraction of each transaction. An interesting feature of Bitcoin Cash technology is that it works on a scalable complexity.
This means that when fewer miners are working, it is easier to mine BHC. This has prompted some miners to adopt BHC as they can earn more money. Here, however, the opposite effect worked – since a lot of coins are immediately added to the market, the value of Bitcoin Cash decreases according to the laws of the market.
At the end of March 2021, the Bitcoin Cash price USD is $509.87.
Can You Mine BCH
Bitcoin Cash also works on the Proof-of-Work principle. This means that the processing power of real people's computers is used to confirm the transaction. It is spent on calculating the hash amount with the search for all previous information about the receipt of coins. In order for the system to remain decentralized, the labor of miners is used.
The reward for solving the BCH block is 6.25 coins. Taking into account the price of Bitcoin Cash, which is more than $ 510 the payout to the miner is almost $ 3200.
For cryptocurrency mining, the system uses the SHA-256 algorithm — the same as that of the first digital currency. This makes it possible to mine Bitcoin Cash on specialized processors — ASICs. They are designed for mining Bitcoin and all digital assets built on the SHA-256 algorithm.
Today, mining BCH with the use of ASIC processors is one of the most profitable. And this is without taking into account the growth of the Bitcoin Cash to USD ratio.