- News and analysis
- Fork the System! Bitcoin Cash and Its Path Through the Blockchain Evolutionary Tree
Fork the System! Bitcoin Cash and Its Path Through the Blockchain Evolutionary Tree
Let's face it! At times, the crypto community can be quite ‘tribalistic’. Coin tribes from different sides rarely reach across the divide. Sometimes these differences of opinion can lead to chain splits as these tribes strive to find their own way. ⚔️
One of the most prominent examples of this is Bitcoin Cash. The most well-known Bitcoin fork that has been trying to forge its own path and identity🔱. But can it really do this and should it be considered? 🤔
BCH was supposed to solve many of Bitcoin's long standing challenges, but such a decision has caused a split in the crypto community. Although the two cryptocurrencies can easily coexist, many argue about which one will be the asset of the future.🔮
How does Bitcoin Cash work? And how did it get separated from Bitcoin? Let's dive in and find out. 🚀
What is Bitcoin Cash (BCH)?
Bitcoin's popularity has reached unprecedented heights, and it has become a worldwide phenomenon. Don't get us wrong, we still love Bitcoin however… as more and more people use the network, transactions have slowed down and fees have sometimes become a little more expensive 💸. This question about BTC's scalability, particularly its ability to change block size, has divided part of the crypto community.
After Bitcoin ran smoothly for several years, a number of developers working on the original Bitcoin protocol felt that the project was deviating from founder Satoshi Nakamoto's vision of what the cryptocurrency was supposed to become, namely a cost-effective, decentralized payment system. 🔱
The internal conflict peaked in 2017 when the Bitcoin blockchain split into two parts and Bitcoin Cash emerged as a separate blockchain.
Bitcoin Cash was born as an offshoot of the Bitcoin blockchain, called a "fork" in the crypto world.
The main purpose of BCH is to be used as a payment system, meaning people can send and receive funds in the same way as its big brother, BTC. However, because it has a larger block size, Bitcoin Cash allows for faster and cheaper transactions. Unfortunately, because BCH is a newer cryptocurrency, not many merchants and businesses accept it as a payment method yet. However, as its popularity grows, it will be able to make its own way forward.
Bitcoin Cash is a decentralized, peer-to-peer electronic money system that is independent of any central authority, such as a government or financial institution. As such, it represents a fundamental change in the very nature of money. The main characteristics of Bitcoin Cash are:
👐 Total openness - No one controls or owns the coin. You don't have to get permission from anyone to use it.
👀 Anonymity - Owner identification is not tied to transactions. This allows payments to be made without censorship and without having to reveal the identity, as in centralized banking systems.
👀 Transparency - All transactions are recorded in a global public blockchain. Anyone can track the entire history of coin ownership.
🌐 Distributed network - Its work is supported by a large community, whose members use special equipment. This ensures reliability and long-term storage of information.
📜 Clear rules - Nodes follow a protocol for agreeing on the state of the ledger. It can be changed, but it requires serious action and the support of the majority of network participants. This makes cryptocurrency a system where users create something akin to a social contract.
🏰 Immutability - The technology works so that once a record is made in the blockchain, it stays there forever and does not change.
🛡️ Security - Proof-of-Work protocol means that miners compete with each other to add blocks to the chain that forms the ledger. The energy costs and high hardware requirements associated with Proof-Of-Work increase the security of the network.
The Future of Bitcoin Cash
Over the past year, the cryptosphere has taken a big step forward. The DeFi sphere is actively developing, Ethereum plans to switch to version 2.0 and Proof-of-Stake consensus, and even institutional investors are getting into the game.
As of this writing, Bitcoin Cash is in 30th place among all cryptocurrencies, according to CoinMarketCap. As it continues to grow, it will start to make more noise in the space, and people will notice. 💥
Many think that the two crypto bros should stand up to each other. In some aspects, yes, they have advantages over each other. However, that does not mean that Bitcoin and Bitcoin Cash cannot coexist. Both are really great options for investors, so make sure you don't sleep on one of the coins!
Bitcoin Cash (BCH) in the Market Today
Bitcoin Cash is currently trading downwards, valued at $99.38. The price is up almost 5% since yesterday's low of $95.29, but is down over 7% since the start of this week! In fact, yesterday’s low was the lowest it has seen since December 2018. Could this be the bottom? Or is there more downside to come? This price action demonstrates how BCH bears are attempting to accumulate so that BCH can begin to remain in the bearish momentum. The volume to Market capitalization ratio is 0.6252.
The BCH price needs to attract a bigger number of buyers in order to reverse this bearish momentum it has gathered and stop the price going even lower. If it can do that and bulls can take back control, BCH can start to show more promising price action.
Is Bitcoin Cash a good investment?
Bitcoin Cash has great utility. It can be used for seamless instantaneous processing and serves as a great vehicle for everyday transactions. This has led to an increase in popularity and acceptance. With the constant advancement of technology, its popularity is increasing day by day.
Bitcoin Cash at NAGAX
NAGAX is designed to make trading as fast, easy and secure as possible - so you can add Bitcoin Cash to your portfolio in seconds.
Buying Bitcoin Cash (BCH) is as easy as it can be with NAGAX. Become the proud owner of BCH in 3 easy steps:
- Sign up for a NAGAX account.
- Buy BCH instantly with a Debit/Credit Card or USDT through the intuitive NAGAX Wallet or Exchange.
- That’s it - you’re all set!
When it comes to buying crypto, you have a lot of options. You can directly purchase $BCH with a credit/debit card or other cryptocurrencies (USDT, BTC) in the NAGAX Wallet. To learn more about buying crypto at NAGAX, please click here.
Discover Bitcoin Cash with NAGAX today! 🚀
- Bitcoin Cash is notable for being the first hard fork of Bitcoin, and the project itself has become a crypto to be reckoned with.
- BCH maintains a high rating on the market, and it has created its own identity and mission different from Bitcoin.
- Bitcoin Cash was created to accommodate a larger block size than Bitcoin and allows for more transactions in a single block.
- Despite differences in philosophy, Bitcoin Cash and Bitcoin have many technical similarities. They both use an identical consensus process and have set the supply volume at 21 million.
Important Notice: Any news, opinions, research, analyses, prices, or other information contained on this feed are provided as general market commentary and do not constitute investment advice or solicitation for a transaction in any financial instrument or unsolicited financial promotions. All material published on the website is intended for informational purposes only. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. We do not make any warranties about the completeness, reliability, and accuracy of this market commentary. Past performance is not an indication of possible future performance. Any action you take upon the information on this feed is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this feed.
Risk Warning: Cryptocurrencies are highly volatile and trading can result in the loss of your invested funds. Before investing you should be aware that cryptocurrencies may not be suitable for all investors. You should therefore carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and not invest money that you can not afford to lose.