Bitcoin is a cryptocurrency beacon, and the surprise bullish early 2021 has made it shine much brighter than before. And once Bitcoin Cash is published, people will question whether it’s a fork of Bitcoin or a whole new cryptocurrency. To both of these queries, the answer is, in fact, yes.
A hard fork essentially splits the blockchain in two, with each existing remnant becoming its own cryptocurrency with its own blockchain. This way, everyone holding BTC will receive the same amount of BCH when the fork occurs. It was a concern for BTC miners and engineers that the BTC blockchain planned to use SegWit technology.
The group claimed the proposed update violated Satoshi Nakamoto’s decentralization concept. As a consequence, the only solution to the scalability issue was to raise the block size limit. A hard fork could split BTC into two parts. One of them will process more trades at a faster rate than BTC, and that’s where BCH was born.
Early Bitcoin Investor
Roger Ver, often known as Bitcoin Jesus, co-founded BCH in 2011 with a $1 investment and continues to promote bitcoin via BTC. In a 2019 Forbes interview, he indicated he is working with additional celebrities to adopt Bitcoin Cash for real-world transactions.
The technology of BCH is exactly the same as that of BTC. Cryptocurrencies have a blockchain that acts as a ledger and records all transactions. Bitcoin miners utilize powerful computers to solve complicated math problems, confirm transactions, and add new blocks to the network. The block reward for miners is currently 6.25 BCH since the last halving in April 2020.
Even today, the BTC network can only process 7 transactions per second. (TPS), the BCH network can handle much more. At the time, the block size for BTC was 1 MB, but the block size for BCH was 8 MB. It has since grown to 32MB.
Opportunities for Bitcoin Cash
People who want to mine Bitcoin Cash will have to use more computing power, which means they’ll have to pay more for it. Meanwhile, this means more opportunities for miners to earn transaction fees. But perhaps the biggest difference between the two is the huge price difference. At the time of writing (March 30, 2021), BTC is approximately $58,000 and BCH is approximately $520.
At the same time, BCH has a built-in algorithm that is used to speed things up. It’s being used on its own. In fact, even today, this is an understandable disappointment. Many media outlets continue to focus on BTC being digital gold with limited supply. With low costs and quick processing times, developers expect BCH to replace BTC as the de facto currency.
Believe it or not, BCH also had a hard fork! actually more than once. Like the BTC split, the BCH fork arose from a civil war among engineers over the future of the blockchain. Basically, you have reached the block size. Meanwhile, Roger Ver and the company wanted to keep the block size at 8MB.
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