The relatively young cryptocurrency Bitcoin Cash, which has existed for only two years, was created to solve the scaling problems of the well-known Bitcoin. She quickly took her place on the leaderboard. In its most successful periods, the value of Bitcoin Cash exceeded 4 thousand dollars, now it has fallen somewhat and is barely breaking the $ 220 mark. However, many experts of the cryptocurrency exchange are sure that soon the quotes are bound to rise and BCH will still show its strengths.

About the Bitcoin Cash project

The digital currency Bitcoin Cash is a payment system with its own BCH token. It was created on August 1, 2017 as a fork of the mainstream cryptocurrency Bitcoin. The previously mentioned hard fork occurred due to disagreements among various groups in the Bitcoin community. The main driving force behind the differentiation was the complexities associated with the scalability of the BTC network. Because of this, there were slowdowns in the conduct of transactions. The limit of the maximum allowable scale of one blockchain led to the appearance of confirmation queues, and quite significant ones. Already at the end of spring 2017, the situation changed for the worse to such an extent that the confirmation of the transaction took more than one day. It was possible to increase the speed of the operation with the help of an inflated commission payment, which was absolutely at odds with the idea of using digital currency as a payment system. It became completely unprofitable to transfer a small amount of finance.

To solve this problem, various options were proposed, including the SegWit2x protocol, but many developers did not want to change the structure of the blockchain, and it was decided to release a new fork. The Bitcoin Cash blockchain has kept the basic principles, but the block size has been increased to 8 MB.

The new digital currency operates on the same protocol as BTC, its hashing algorithm is SHA-256. The reconciliation and bonus structure is PoW, and the upper emission level should also not exceed 21 million coins. However, there are some differences, the main of which is the increase in the block size from 1 MB to 8 MB. Also, Bitcoin Cash has a different scenario of difficulty correction. If for Bitcoin it changes every 2016 blocks, then for BCH - every 6.

In addition to all of the above, the altcoin introduces protection against replay and erasure of transactions. There is also a special type of transactions in which the user is able to separately sign the transfer amounts, thereby making payments more secure.

How is Bitcoin Cash created?

When it became obvious that the Bitcoin network was not able to handle the loads that had piled on it, as a result of which transactions could hang for several days, the miners did not have time to create blocks, and the commissions increased, a decision was made to unload the network.

Several options for resolving the problem were discussed:

SegWit
In this solution, it was proposed to display some of the information in separate files outside the blockchain. As the authors of this resolution of the problem argued, this should have made the block more capacious. In addition, confirmation speed will increase, and the entire network as a whole will become much more responsive and easier. People who opposed this decision argued that it was temporary, difficult to implement and did not solve the problem in a global sense.

SegWit2x protocol.
This fix of the predicament implied increasing the block to 2 MB and outputting some of the information outside the blockchain.

However, none of the proposed solutions satisfied the development team. As mentioned above, the block was expanded to 8 MB, which made it possible to preserve the former uniform mechanisms of action.

The main creator of the coin is considered to be Amori Sechet. He previously worked as a programmer at . Sechet has long been curious about Bitcoin and has developed his own scaling variations. The idea to implement the offshoot was prompted by an organization from China that produces equipment for mining. Amory received a grant from the Bitcoin Development Team, which funded the research.

Other notable creators include Haipo Yang, a talented mathematician with fundamental knowledge of blockchain. The development team also includes Jian Wu, one of the founders of the Bitmain organization that provided the grant to Sechet, and Roger Ver. The latter is a rather interesting person. In addition to being called the owner of one of the largest amounts of BTC in the world, Roger Vera is widely known as the bitcoin evangelist and is nicknamed Bitcoin Jesus.

Bitcoin Cash features

After the separation of BCH from BTC on August 1, 2017, the very next day, the Bitcoin Cash price doubled - up to $ 400 per token. A little over two weeks later, on August 19, it was possible to buy Bitcoin Cash for more than $ 1,000. By the end of 2017, the coin reached its maximum value of $ 4,300. At the time of this writing, on November 30, 2019, the rate of one BCH was $ 220, which indicates a decrease in popularity among users. However, it is too early to send this token to the bench in, for example, a country like Japan, where there is an increased interest in all cryptocurrencies, where this coin is quite in demand. Although Google autumn charts show that here, too, user interest has slightly decreased.

Keep in mind, though, that Bitcoin Cash is the largest of the forked digital currencies and has the potential to explode.

Many experts call Bitcoin Cash a more thoughtful analogy to Bitcoin. Like its predecessor, in the BCH system, legitimacy is guaranteed by other users. The blockchain duplicate is contained on the personal computer of each of the participants. It is under these circumstances that transaction transparency is ensured. To check transfers between participants and confirm the legitimacy of receiving tokens, computing power based on the Proof-of-Work principle is used.

Due to the increased size, the block contains much more operations than Bitcoin. This guarantees the stability of the system at higher rates of daily turnover and allows you to completely eliminate the queue of pending confirmation transfers on the payment platform. The block is solved by the miner rather quickly due to its size, and the complexity of the calculations is adjusted every 60 minutes. As a result, participants receive low-cost transactions that can be completed in less than a minute.

Despite all of the above, according to one of the Google developers Allen Day, the digital currency Bitcoin Cash is mainly used by users to save money, and not to carry out transactions.

After the first branch, users who had BTC on their account received a similar amount of BCH. How to get tokens today? There are several methods:

Mining. Bitcoin Cash uses the SHA-256 hash algorithm. The block reward is equivalent to 12.5 tokens. Due to the increased block size, Bitcoin Cash is much easier to extract than Bitcoin. However, there is one peculiarity: difficulty regulation is carried out every 6 blocks. If at first it was really possible to get income by mining coins alone, now it is much more profitable to work in a pool.
Take part in donations. To do this, you need to install a cryptocurrency wallet. Then go through the authorization process through your Google account on the free faucet page and enter your own wallet address. With the announced distributions, tokens will be received on it.
Profit from quality content. A certain number of coins can be obtained for publishing unique content on the relevant sites that can be found on the Internet. The amount of the fee depends on the quality and importance of the material, the reaction of users to it.
Purchase digital currencies on exchanges. Initially, many platforms reacted with criticism to the new cryptocurrency and refrained from adding it to the list. Some of the first to believe in BCH: Bitfinex, HitBTC, Kraken, Bitfinex. Many others followed, and now it is possible to buy Bitcoin Cash on virtually any top platform.

To save altcoins, the developers have released two wallets: Badger Wallet and Bitcoin.com. They are available for download on the official website of the organization. It is also possible to download other wallets with support for storing Bitcoin Cash.

Is Bitcoin Cash infinite?

According to the protocol, no more than 21 million coins can be mined in total. Limited emission makes cryptocurrency a reliable store of value, distinguishing it favorably from other cryptocurrencies and paper money.

Strengths of Bitcoin Cash

Formation of branches is not only one of the varieties of problem solving, but also quite a profitable business. In most cases, the price of tokens rises after the hard fork, which makes it possible for the founders to get impressive profits. Considering that Bitcoin Cash is one of the most successful offshoots, the coin has a ton of benefits.

Minimum commission. In the PoW structure, commissions are especially important. The more significant the transfer and the sooner it needs to be done, the larger the commission becomes. During busiest times, fees can range from $ 20 to $ 50 per transaction. In Bitcoin Cash, it is possible to pay less than 1 cent per transaction.
There are no confirmation queues. It doesnt matter how many users are involved in the mining process. The block processing rate remains unchanged.
Resolving the scalability problem. A sufficient block size and frequent updating of the complexity of mining tokens in the complex allow transferring in a few seconds.
Decentralization of development. Thanks to the participation of several independent groups in the creation of Bitcoin Cash, it is problematic for large players to influence the reforms of the digital currency protocol. It also creates a certain level of security against attacks due to developers monitoring an increased concentration of capacities at one person.
High level of site reliability. Among the creators of Bitcoin Cash are programmers, mathematicians, highly professional cryptographers. Thanks to this, the token has incorporated the strongest aspects of distributed computing and information storage technologies. Additional protection is guaranteed by regular visitors to the site.
An impressive global future. To compete with the major banking systems, it is not enough to simply apply blockchain technology. Many users have adapted to pay a lack of privacy and transparency for instant transactions between banks. The Bitcoin Cash system provides a global opportunity that includes the reliability of a blockchain-based platform and the instantaneousness of the most advanced banking operations.

Bitcoin Cash in the TOP cryptocurrencies

The future prospects of Bitcoin Cash clearly indicate that this digital currency has all the development trends. Given the fact that users have more than an impressive number of tokens in their hands, it can be assumed with a degree of probability that most traders believe in the upcoming rise of altcoin. As of December 2019, the cryptocurrency does not go below the fifth mark in the ranking of popular cryptocurrencies, and its capitalization is $ 3,872,330,258.

Summing up, it is possible to assert that Bitcoin Cash is a cryptocurrency, the parameters and indicators of which absolutely meet the current needs of users in the digital currency market. The coin is distinguished not only by reliable protection, but also by a high speed of operations, so nothing will prevent it from rising one level with Bitcoin. We just have to wait for this momentous moment.