Today Bitcoin Cash is one of the industry’s top digital currencies and a rather popular investment tool. It is also on the 4th place among largest cryptocurrencies by market capitalization. Bitcoin Cash was created last year, on August 1st, 2017, as Bitcoin fork. So, why did the community decide to develop a new virtual currency and what is its possible prospective? The Coin Shark keeps on telling about popular altcoins and today we’ll take a look at Bitcoin’s younger brother.
Bitcoin scalability was always an issue but as long as there were not so many transactions it was only a theoretical problem. However, since the transaction volume has increased, many users reported they had to wait for the conformation for several days. The size of Bitcoin block is limited with 1 MB and this became not enough for the growing transaction volume, thus, some transactions had to “stay in a line” to “get into” the block.
Users could set higher transaction fees to speed up processing, but in this case it would have become too expensive to use the cryptocurrency, especially for small transactions.
The developers community suggested a number of solutions. A group of specialists with a former Facebook engineer Amaury Séchet decided to expand blocks up to 8 MB instead of storing a part of information outside a block. They called their new fork Bitcoin Cash.
The block #478558 was the last common block of Bitcoin and Bitcoin Cash. Soon the ticker BCH appeared on major cryptocurrency exchanges. While the US Internal Revenue Service has defined Bitcoin as a property for tax purposes, it has not clarified the legal status of its new fork.
So, here are main Bitcoin Cash advantages:
– 8 MB block size, that speeds up transaction processing;
– efficient security from reply attacks and other hacker attacks;
– dynamic measuring of difficulty (how difficult it is to conduct necessary calculations to get hash from mining), that allows Bitcoin Cash to adapt to the hash rate faster.
So, this virtual currency has some advantages comparing to its parent Bitcoin, its market situation is fairly sustainable and it has a good credibility, which means Bitcoin Cash is an important part of today’s crypto industry and it will probably continue doing well in the nearest future. However, everybody should always consider general crypro-related risks, market unstability and rate fluctuations. We’ll see, what will the future of Bitcoin Cash look like.