Blockchain

What is Bitcoin Cash (BCH): Everything You Need to Know

The Bitcoin Cash transaction fees is minimal among all the top cryptocurrencies available in the market.

Bitcoin Cash transaction

Bitcoin Cash has not been in the limelight for long. A few years ago, precisely in 2017, native Bitcoin hit its limit and transactions started to get slow. To get around this, some officials came up with an alternative to Bitcoin called the Bitcoin Cash (BCH).

According to official information released about the BCH, it saw the increase of the block size from 1MB to 16MB and then 32MB, which is available today.
Most investors are still in the dark about BCH and tend to think that it is the same as BTC. The answer is simply no because the former is a cryptocurrency on its own. It runs on its own blockchain and enjoys separate decentralized features.

The Split of Bitcoin

As soon as the split of Bitcoin occurred, those who moved to BCH received an equal amount of coins as they held with Bitcoin. Thus, we can conclude that the value was the same. It is still possible to transfer your BTC to BCH and vice versa.

However, those who use third party professionals like the Nakitcoins website to store their wallet may need to consult them to see if it is possible to make any exchanges from Bitcoin to Bitcoin Cash. If they have a provision for this, then they can move on to initiate the conversion.

What Makes Bitcoin Cash Transactions Fast?

As mentioned, BCH enjoys a much larger blockchain that is swift with transactions. Technically, the larger space will rarely get congested. It also has relatively fewer users and consequently, fewer hitches when sending and receiving coins and adds on to the Bitcoin Cash transaction speed. It also lessens the number of Bitcoin Cash’s unconfirmed transactions.

Users are also saved the agony of many third-party brokers who also slow the transactions, unlike Bitcoin, which is an attractive hub for thousands of investors and miners.

Using this cryptocurrency is simpler than most others on the market. In addition to this, Bitcoin has been in the market for more than a decade now. Almost every person who has used it has agreed to this fact. It is a straightforward option, even for beginners in the world of cryptocurrency. 

Low Transaction Cost of Bitcoin Cash

Those who have already used BCH can confirm that the Bitcoin Cash transaction fees are minimal. In fact, one will hardly notice the charged Bitcoin Cash fees. The proprietors claim that they designed BCH intending to get as many people on board as possible, and that is why they expanded the cap to 32MB and retained a meager BCH transaction fee. Also, with the lowest transaction fee of Bitcoin Cash, the miners will benefit more by making as many transactions as possible.

Surprisingly, even after low transactional cost, people are not investing in Bitcoin cash as they are investing in Bitcoin, and there are reasons behind it.

1. Absence of Liquidity and Price Stability

If we consider the on-chain transaction volume, exchange-traded volume, and the volatility of daily returns, the price stability and liquidity of Bitcoin Cash doesn’t match that of Bitcoin. It further adds on to the fact that users don’t come across slippage for exchanging Bitcoin. Due to the same, there are fewer Bitcoin Cash transactions as compared to Bitcoin.

2. Lightning Network of Bitcoin Cash

Bitcoin Cash relies on on-chain transactions, which stores all the transactions in the blockchain itself. Every time a transaction happens, the data gets stored and with this, every day, a huge chunk of data has to be managed on the blockchain network of Bitcoin Cash. This factor is still keeping people away from investing in the Bitcoin Cash.

How to Trade Bitcoin Cash?

It is not only easy but fun to invest and trade in Bitcoin Cash. It has many options for trading because it is compatible with other cryptocurrencies and fiat money as well. That means that you can buy it using Bitcoin, dollars, a credit card, or various online payment options, and you can sell it back using the same options. This level of flexibility is tightening its competitiveness, especially when compared to BTC.

The next significant question here is, how do you get Bitcoin Cash?

Well, the answer to this question is the digital wallet. After creating a wallet, there are many ways through which you can acquire Bitcoin Cash. Here are some ways:

1. Buy Through a Broker or an Exchange

There is a direct provision through which you can buy Bitcoin Cash by exchanging the regular currency. For instance, you can get the euros transacted for Bitcoin Cash from a cryptocurrency broker like BTC Direct. And to transfer the amount to the cryptocurrency broker, you have the option to pay by bank transfer or a payment card.

2. Accept Bitcoin Cash in Payments

Interestingly, Bitcoin Cash was developed to make it as a payment system. Hence, you have all the flexibility to accept Bitcoin Cash in turn of goods and services. The fast Bitcoin Cash transaction speed helps in getting it credited into the wallet almost instantly.

3. Get Your Salary Credited in  Bitcoin Cash

In many parts of the world, companies offer cryptocurrency as a salary. For example, BTC Direct employees have been receiving their salary as Bitcoin since 2018. There is even a possibility of taking a chunk of salary as cryptocurrency and the rest as in the regular currency. Similarly, one can opt for Bitcoin Cash in companies that offer cryptocurrency in salary.

4. Mine Bitcoin Cash

Mining Bitcoin Cash is one of the easiest and elementary ways. You just need to have a computer through you will mine Bitcoin Cash and after verification, the system maintains all the Bitcoin Cash blockchain. Compared to other means, mining takes time and effort. Also, you need to have extensive knowledge about how the network works

Lastly, it is worth mentioning that BCH runs on a secure blockchain that has not yet received threats from hackers. However, users are guided and cautioned to remain vigilant when buying or selling BCH to avoid mistakes that can lead to the loss of their coins.

Use Cases of Bitcoin Cash

Bitcoin and Bitcoin Cash share the same history and due to the same, the applications of both the cryptocurrency are almost the same. The following are some of the prominent applications of Bitcoin Cash:

1. Send and receive

With Bitcoin Cash, you don’t need a third party like a bank or a mediator and can send and receive it from peer-to-peer (person to person. Bitcoin Cash transaction is more productive for international transactions because it incurs low BCH transaction fees and is processed almost immediately.

2. Payment method

As discussed in the trading of Bitcoin Cash, it can well be used as a trusted payment method. Many companies are already using cryptocurrency in payments because the transactions are secured.

Some of the most popular companies accepting cryptocurrencies payment are:

  • Wikipedia
  • Microsoft
  • Expedia
  • AT&T

Even charities are nowadays up for accepting cryptocurrencies as a donation. EatBCH is one such project that fights hunger and accepts only Bitcoin Cash as charities.

3. Investment

Much like every other cryptocurrency, Bitcoin Cash is a safe option to invest. Sometimes there is high volatility in the cryptocurrency market and thus can fetch you a handsome return on even small investment.

We all know how Bitcoin shattered all the previous records and reached its highest every value of $19,891.00 in 2017. Investors look out for such opportunities to make money.

What’s the Difference Between Bitcoin Cash and Bitcoin?

People often get confused between Bitcoin and Bitcoin Cash and to clear uncertainty around these two cryptocurrencies; we have come up with a brief comparison. Take a look at some of the significant aspects that distinctly define the two cryptocurrencies.

  BTC BCH
Founded In 2009 2017
Founder Satoshi Nakamoto Bitcoin Unlimited
Block Size 1 MB 32 MB
Price $ 8,804.66 USD $ 291.01 USD
Circulating supply >17 million >17 million
Maximum supply 21 million 21 million
Transactions/sec (max) 7 60
Block time (approx) 10 minutes 10 minutes
Mining Profitability 0.1783 USD/Day for 1 THash/s 0.1947 USD/Day for 1 THash/s

We hope the above-mentioned table helped you in distinguishing BTC with BCH. In addition to this, we highly recommend going through some of the top emerging Blockchain trends that are likely to take over in 2020. 

And in case you still have some doubts regarding the topic of Bitcoin Cash, feel free to leave a comment in the section below and our experts at MobileAppDaily will get back to you at the earliest. 
 

General FAQ

  • What is Bitcoin Cash?
  • How to access Bitcoin Cash?
  • How fast is Bitcoin Cash?
  • Why Bitcoin transaction fee too high?
  • What is the difference between Bitcoin and Bitcoin Cash?
  • Where can I get Bitcoin Cash?
Vikram <span>Content Manager</span>
Written By
Vikram Content Manager

Vikram is an experienced wunderkind, who embraced technology at a very early age, and today he is at the helm of it. Mobile apps are something that excites him the most, and now he is up to give this vertical the best shot. He routinely catches up with the new apps and comes up with the top apps that can excite you to the core.

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