How Bitcoin Cash (BCH) appeared

Bitcoin was first split in 2015, and within two years, as a result of experiments and the search for the most effective functionality, Bitcoin XT, Bitcoin Core, Bitcoin Unlimited, Bitcoin Classic appeared. The block size was so small that the developers were looking for new opportunities for creating a new cryptocurrency. The loudest hard fork and historical event occurred on August 1, 2017, in Hong Kong. With the support of Facebook ex-engineer Amory Sechet and his team, Bitcoin Cash appeared. From this moment, battles and debates between supporters began: Bitcoin cash vs. Bitcoin.

What was the problem that the developers were looking for an analog of Bitcoin? The fact is that the block size in the Bitcoin blockchain was limited to 1 MB. The reasons for establishing the framework were related to protecting against digital attacks. If three years ago, such a solution suited all miners and developers, later on with the development of technology, it was not enough.

The growing popularity of cryptocurrency has led to the fact that the transaction began to take too much time. If earlier the miner needed only 10 minutes, in the summer of 2017, it took several hours or even days. Developers and miners, to solve the problem, proposed two options:

remove the limit of 1 MB - Bitcoin Unlimited. Many developers opposed it, who considered that removing the limit would lead to a greater load on machinery and equipment, as well as the centralization of the entire system. Plus, it was likely that the removal of restrictions would affect small miners who would not pull in new working conditions;
save part of the information on the blockchain, and part outside the blocks - Segregated Witness (SegWit). The developers thus hoped to unload the memory and increase the speed of transactions.

Despite the resistance of Bitcoin Unlimited supporters and their belief that it is a temporary measure, the developers for a long time could not come to a common agreement. The compromise option set forth in the SegWit2x protocol, an increase in the size of blocks up to 2 Mb, did not lead to anything. As a result of the debate, in August 2017, some experts announced the abandonment of SegWit2x and decided to maintain the previous blockchain structure, having increased the block size to 8 MB. Information storage outside the block was not provided! Appeared blockchain branch gave rise to Bitcoin Cash.

Initially, it was decided to name the BCC cryptocurrency, but this abbreviation already belonged to BitConnect. As a result, the developers focused on reducing BCH. Three-quarters of all coins currently created on a crypto farm in Hong Kong.

The main differences

What is the difference between Bitcoin Cash and Bitcoin? Let us highlight the main differences between the two cryptocurrencies:

block size: Bitcoin has a block size of 2 MB, developers have increased Bitcoin Cash (BCC, BCH) to 8 MB;
network complexity: BCC indicators change quickly, therefore, if the hash rate of the network grows, so does the complexity, and vice versa;
SegWit protocol support: Bitcoin Cash developers do not plan to activate SegWit;
the presence of the “replace by fee” function in Bitcoin, this function is not provided for in BCH;
protection against "replay" attacks is available for the new currency;
the BCH system allows you to adjust indicators faster;
enhanced protection of BCH transactions from repetitions and erasure;
an updated type of transactions in the BCH, allowing you to specify the payment amount;
the introduction of a new type of operation with an additional level of security for the wallet;
currency rate.

Which is better: Bitcoin cash or Bitcoin? Despite these differences, Bitcoin is at the top of cryptocurrencies and is ahead of Bitcoin Cash in value. The new currency has many advantages since its mining is faster and safer, but the price of the classic Bitcoin speaks for itself.

Bitcoin Cash Development Prospects

Today, Bitcoin Cash is at the top of cryptocurrencies and is second only to the original BTC and Ethereum (ETH). The hard forks held in November 2017 and May 2018 helped the new cryptocurrency remove some problems and lay claim to the next increase in blocks to 32 MB.

The developers have plans to upgrade and the following steps:

reduction in block creation time, approximately up to 600 seconds;
elimination of changes in the complexity of cryptocurrency mining with a stable hash rate;
increase in recalculation rate in a situation of hash rate change;
improving the security of operations.

All these changes will further strengthen the position of Bitcoin Cash, make mining fast, affordable, and simple. These calculations, according to developers, should lead to an increase in the price of BCH.

The idea is controversial, but it has the right to life: some analysts believe that Bitcoin Cash is interesting for those cryptocurrency market players who rely only on short-term speculation. Therefore, despite the stability of the BCH, all operations require careful analysis!

Frequently Asked Questions

Is mining Bitcoin Cash profitable?

The principle of mining both cryptocurrencies is similar, but with the advent of the new Bitcoin Cash, many miners mistakenly believed that BCH mining would be easier. Those who rushed for BCH and hoped for less computing power were out of work. What is the reason? While there were fluctuations in the value of the solved block, the omniscient Chinese occupied the niche! It is China, today, that dictates the rules for the formation of a new cryptocurrency.

How to get BCH?

Despite the complexity of mining, there is an opportunity to earn BCH: trading, gambling on crypto platforms, using affiliate programs, and renting cloud services. Due to the stability of Bitcoin Cash in the market, more and more exchanges, exchangers, faucets, including the new currency in the list, allowing for diverse financial transactions.

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