Bitcoin Cash (BCH) is a spin-off of the cryptocurrency Bitcoin. It is designed to act as a form of money and payment system that is more efficient than Bitcoin. BCH was created to address the scalability and transaction speed issues with Bitcoin, as well as the cost of transactions. As a result, Bitcoin Cash became a more user-friendly version of Bitcoin.
How Does BCH Work?
BCH is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain BCH occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
Use Cases of Bitcoin Cash (BCH)
1. Bank-free transactions: Cryptocurrency acts as a decentralized digital currency, enabling peer-to-peer transactions without intermediaries. Transactions are recorded on a secure and transparent ledger, offering a more secure and private alternative to traditional financial systems.
2. Decentralized Finance: Cryptocurrency is a vital component of decentralized finance (DeFi), serving as collateral for loans, powering yield farming and staking, and enabling decentralized exchanges. By eliminating intermediaries, DeFi increases financial accessibility and inclusivity for all.
3. Store of Value: Cryptocurrency, such as Bitcoin, has gained recognition as a store of value due to its scarcity and decentralized nature. Some individuals use it as a hedge against fiat currencies and inflation, while others see it as a form of digital gold.
4. Payments: Cryptocurrency is accepted by merchants as a means of payment for goods and services. Transactions are fast, secure, and come with low fees, making it a cost-effective alternative to traditional payment methods.
5. Borderless Transactions: Cryptocurrency enables cross-border transactions, providing a fast and secure way to transfer value between countries. This is particularly beneficial for countries with weak currencies or limited access to traditional financial systems, making it easier to send and receive money.
History of Bitcoin Cash (BCH)
BCH was founded by It is a hard fork (copy) of Bitcoin that was slightly altered to make transaction times faster and fees lower.
Pros and Cons of Bitcoin Cash (BCH)
Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.
No middleman: Bitcoin Cash eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.
Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such as Bitcoin Cash enable users to make local and global money transfers much quicker than using a bank. TransferringBitcoin Cash is also a lot cheaper than bank transfers.
Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with its quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase to hundreds or thousands of dollars like Bitcoin or Ethereum.
Not completely anonymous: A big claim of cryptocurrency is that it is anonymous, so transactions cannot be traced back to your identity. Unfortunately, this is not accurate. Crypto is actually pseudonymous. Your crypto transactions are documented on a public ledger, so it is possible for anyone to trace the trail of the transactions back to you.
Prone to hackers: Because of the earning potential that comes from holding coins like Bitcoin Cash, crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.
Volatility: It’s very common to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $19 one day only for the price to drop to $10 the next day.
Lack of user protection: Bitcoin Cash transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.
Where To Buy Bitcoin Cash (BCH)
You can trade Bitcoin Cash on major crypto exchange platforms. You are able to buy, sell or use the token for trading on both centralized and decentralized exchanges.
3. Huobi Global
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 19,299,000 BCH
Max supply: 21,000,000 BCH
Because of its affiliation with Bitcoin, Bitcoin Cash has been added on numerous exchanges and consistently has a high trading volume.
BCH Developer Engagement
As stated on the Bitcoin Cash website, BCH has multiple independent teams of developers providing software implementations. In addition to this, Bitcoin offers many bounties to the BCH developer community as there are lots of projects being deployed by BCH developers daily.
BCH Network Speed
Transaction Time: 120-150 minutes
More than 50% of the entire BCH supply is held by less than 2,000 addresses.