What is Bitcoin Cash (BCH)? Complete focus on the virtual currency BCH

By Le Anh | Coins & Tokens

Bitcoin Cash (BCH)

In the summer of 2017, an important event of Bitcoin was held. This is the first time marking the formation of a new block chain through the split from Bitcoin's block chain.

The block chain that was born after this split was called - Bitcoin Cash.

In this article, you will take a closer look at Bitcoin Cash (BCH), from the reason of formation to the prediction of its future.

OK, got it Are you ready?

Let's get started! Let's goooooo.

Bitcoin Cash (code: BCH) is a peer-to-peer electronic currency. Allows users to pay directly from one party to another quickly and almost for free without having to go through any financial institution.

Wait! Do you find this definition very similar to the concept of any coin?

Exactly! That is Bitcoin (BTC).

So why do these two coins have the same definition?

The simplest answer is: Bitcoin Cash is the first Hard Fork from Bitcoin's blockchain.

And with the above definition, Bitcoin Cash RECOGNITION they were the development chain following Satoshi Nakamoto's original idea when he founded Bitcoin - A Peer to Peer Electronic Cash.

So what was the reason for Bitcoin Cash's birth? Let's go to the next section!

Why was Bitcoin Cash born?

To find the answer to this question, my brothers and I went back to the time of May 05.

At this stage, Bitcoin traded above $ 8,000 per BTC. This was followed by the rapid development of Bitcoin network.

But that rapid development made the Bitcoin development community realize an extremely important weakness, preventing Bitcoin from becoming a peer-to-peer currency.

That is Bitcoin's block size (1MB).

It is so small that the transaction processing time and transaction fees have increased many times.

To solve this problem, the community came up with two options: Bitcoin Unlimited (BU) and Segregated Witness (SegWit). Inside:

Bitcoin Unlimited (BU)

This solution will remove the original block size limit of Bitcoin (1MB). Instead, miners were allowed to choose to handle blocks of any size as long as it suited their capacity.

This raises concerns about Bitcoin's decentralization being threatened when the network's control will fall into the hands of large mining corporations.

Segregated Witness (SegWit)

SegWit is a solution to increase the original block size of Bitcoin through the removal of signature data from Bitcoin transactions.

This makes Bitcoin's block size able to hold 4 times more data than the original. This means upgrading the block size from 1MB to 4MB.

However, some members of the Bitcoin community feel that SegWit is only a temporary solution, delaying, not solving the problem root.

Therefore, they decided to announce the fork of Bitcoin's Hard Fork into two branches.

The beginning of Bitcoin Cash

With the back of Roger Ver and Jihan Wu, the split took place successfully on August 01, 08 at block 2017.

Holders of Bitcoin at block 478,558 will receive a BCH amount of 1: 1.

At the time, there were more than 16.5 million BTC in circulation. This means that there will be about 16.5 million BCH in circulation after the hard fork succeeds.

Basic information about Bitcoin Cash (BCH)

  • Ticker: BCH
  • Blockchain: Bitcoin Cash
  • Type Token: Coin, Mineable
  • Consensus: Proof of Work (PoW)
  • Algorithm: SHA-256
  • Block Time: 10 minutes
  • Transaction Time: 61 TPS
  • Block Reward: 12.5 BCH per block
  • Total Supply: 21,000,000 BCH
  • Circulating Supply: 18,106,389 BCH

Bitcoin Cash (BCH) exchange rate today

The difference between Bitcoin Cash and Bitcoin

The main difference between Bitcoin Cash when compared to Bitcoin is the block size.

While Bitcoin has a very small block size (1MB), Bitcoin Cash decided to increase 8 times (8MB) at the time of launch and can upgrade to 32MB.

Besides, Bitcoin Cash announced it would not support SegWit in their block chain.

You can see more clearly the difference below this table.

Advantages

Bitcoin Cash was born to solve the scaling problem that Bitcoin was facing at the time.

By raising the block size to 8MB, Bitcoin Cash's transaction processing speed significantly improved to 24-100 TPS, many times higher than Bitcoin (7 TPS).

The increased processing speed makes transaction costs cheaper (~ $ 0.0038). You can see, the transaction fee of BCH is much cheaper than BTC.

Defect

In exchange for the expansion of trading, Bitcoin Cash is centralized again when the network's decision-making power depends on a few large mining pools such as ViaBTC, AntPool, BTC.com, BTC.top ...

This happens because Bitcoin Cash hashrate competition is quite low, much lower than Bitcoin.

The low hashrate comes from a number of factors:

  • Faith: It is clear that Bitcoin Cash is not as popular with investors as Bitcoin.
  • The opportunity cost of BTC mining is still more profitable than BCH mining: At the moment, BCH's block reward value is 12.5 ~ $ 3,587 for each block mined. This number of Bitcoin is up to ~ $ 110,000 again. While mining operating costs between Bitcoin Cash and Bitcoin are the same.

And when the hashrate is lower, Bitcoin Cash's network is 51% vulnerable to serious damage to the network.

Most recently on October 26, 10, Bitcoin Cash was an anonymous miner accounting for 2019% of the network's hashrate within 50 hours.

Raising a warning bell, Bitcoin Cash is very vulnerable to 51% attack at any time.

Purpose of using Bitcoin Cash (BCH)

Like BTC in the Bitcoin Cash network, the BCH in the Bitcoin Cash network will be used for a number of purposes such as:

Fees

BCH is used to pay transaction fees within the Bitcoin Cash network. This is relatively cheap, only about $ 0.0038.

Rewards

BCH is used as a block reward for miners when they create a new block in the Bitcoin Cash network.

Bitcoin's initial block reward is 12.5 BCH per block. Because when Bitcoin Cash was born (2017), the block reward of Bitcoin was at 12.5 BTC per block.

Theo CoinGecko, Bitcoin Cash will halving within 146 days. This will reduce the block reward from 12.5 to 6.25 BCH for each block.

You can check the Bitcoin Cash Halving time here: https://www.coingecko.com/vi/explain/bch_halving

Payments

BCH is also used as currency in stores, partners accept BCH as a means of payment.

Currently, Bitcoin Cash has about 1,769 stores that accept BCH for payment worldwide.

You can check the number of stores accepting Bitcoin Cash here: https://map.bitcoin.com/

How to mine Bitcoin Cash (BCH)?

Like Bitcoin, Bitcoin Cash uses the SHA-256 algorithm so you can dig and mine BCH with miners like CPU, GPU or ASIC.

Although ASIC can be mined using a CPU, GPU and ASIC, but for the profit to mine, ASIC miner is the best choice.

You also know that mining is a hashrate competition and to have a large hashrate requires high speed and computing power.

Currently, there are two popular ways of BCH mining: Digging BCH alone (solo mining) and BCH mining through prestigious BCH mining pools (pool mining).

Depending on your ability, you can choose the appropriate method for BCH exploitation.

Secure Bitcoin Cash (BCH) storage wallet

You can store BCH on Bitcoin Cash recommended wallets such as Bitcoin.com, Yenom and Electron Cash.

These three wallets have both computer and phone support versions, you can download the appropriate version for you here: https://www.bitcoincash.org/wallets.html

Besides, BCH is also supported by many other wallets such as:

  • Hard wallet: Ledger Nano S, Ledger Nano X, Trezor
  • Application: Coinbase wallet, Trust Wallet, Bread Wallet.
  • Paper Wallet: Cash Address, Walletgenerator.

In addition, you can also store BCH on the exchange REPUTATION to facilitate the Trade. However, do not put too much.

Bitcoin Cash (BCH) exchange

After more than 2 years, since the successful split, BCH is ranked 4th on the CoinGecko market capitalization chart and is supported to buy and sell on more than 56 large and small exchanges.

The total average trading volume of the past 30 days reached more than 2.15 billion dollars creditial of BCH at the moment is very good.

In particular, BCH is trading, buying and selling the most on Bitfiniex.

Bitcoin Cash (BCH) future

An interesting point of Blockchain is that, no matter what you say is not important, how important it is displayed on the network (On-Chain Data).

In particular, the coins that make payments (payments), the more accurate this is.

Because, if that coin is really widely used, it means that the amount of transactions on the network must be high.

Now, let's see how Bitcoin Cash's network shows from the beginning of 2019 until now!

BCH On-Chain Data

Number of active wallets

Since the beginning of 2019, the number of active wallets on Bitcoin Cash network tends to increase from 18.7 thousand wallets to 41.5 thousand wallets, equivalent to + 122%.

In particular, you can clearly see the number of active wallets increasing steadily from the beginning of the year to about May and June, an increase of + 5%.

Amount of Transactions

In general, from the beginning of the year until now, the number of transactions per day in the network of Bitcoin Cash has increased sharply by + 233.2%. Currently, the daily trading volume of BCH is at 63.3 thousand.

You can see clearly, the number of transactions in the Bitcoin Cash network soared from 19 thousand transactions to 166 thousand transactions in the middle of May increased by + 5%.

Price of BCH

If you look at the whole, you will see the relationship between the number of active wallets, the amount of transactions, and the price.

Below, you see that, as the number of transactions, the number of wallets active on the network increases around mid-May.

The price of BCH also increased sharply from $ 109.1 to $ 454.4, equivalent to + 316.5%.

Similarly, when the number of wallets and transactions decreases, so does the price of BCH. Currently, BCH is being traded at $ 284.

Amount of Merchants

In addition to the on-line factors, you also need to regularly check the number of stores that accept BCH for payment worldwide.

This is also a measure for payment coins like Bitcoin Cash.

BCH 51% Attack

As I mentioned above, Bitcoin Cash's network is having serious problems with its resistance to 51% attacks.

This could get worse as Bitcoin Cash proceeds to Halving, halving block rewards next year.

Because, when Bitcoin mining profit is greater than BCH mining profit. Miners will switch to Bitcoin mining, making Bitcoin Cash's network easier to attack than ever.

If a 51% attack occurs, it is the occurrence of double spending. As a result, Bitcoin Cash will collapse in trust for investors as well as partners who are using BCH to pay.

Should Bitcoin Cash (BCH) be invested?

I believe that when you read up to here, you also have quite enough of the most necessary information about Bitcoin Cash (BCH).

Hopefully, from the information provided in the article, you can identify for yourself the opportunities and risks before making a decision to invest in the BCH.

Coin98 will continue to monitor and update the latest information on the Bitcoin Cash project.

Disclaimer: This article is for the purpose of providing information about Bitcoin Cash (BCH) and is not considered investment advice. Invest Cryptocurrency is a form of risky investment, you only participate with capital that can be lost.

FAQ

Is Bitcoin Cash (BCH)

Is not! Although developers always claim to be Bitcoin, the truth is that Bitcoin Cash is just an altcoin.

Is BCHABC Bitcoin Cash?

It's correct!

After the split of Bitcoin Cash's block chain into Bitcoin SV (BSV) and Bitcoin Cash ABC (BCHABC), many exchanges agreed that BCHABC is BCH, or Bitcoin Cash.

In other words, BCHABC and BCH are one.

Where to buy Bitcoin Cash (BCH) safe and reliable?

In Vietnam, you can buy and sell BCH on peer to peer platforms like Remitano, Aliniex, Vicuta ...

You can refer to the detailed instructions on buying and selling BCH in the article Coin98 I put it below.

Useful articles for you: How to buy BCH on Aliniex

Epilogue

Roger Ver transformed himself from Bitcoin Jesus into a criminal, when he tried to swap the concept of Bitcoin Cash as Bitcoin.

As you all have seen, Bitcoin Cash is able to transact quickly and potentially become a payment currency.

But, looking at the decentralized perspective of the network, it failed when Bitcoin Cash's network was too weak and focused.

And after reading this, do you have any thoughts on Bitcoin Cash (BCH)?

Let your comments in the comment section at the end of the article, I will discuss with you more about this BCH.

And, if you see the information by yourself and the team Coin98 The offer is helpful. Do not forget to share this article with other brothers to read it!

Hello and see you again in the upcoming article!

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