InstaForex

July 8, 2021

What is Bitcoin Cash (BCH)?

 Dated April 2021, Bitcoin Cash (BCH) has been recognized by the Securities Commission Malaysia and this asset is available to trade on the Luno platform.


Basically, although BCH and Bitcoin (BTC) seem to be the same but actually have quite significant differences.


Early History of Bitcoin Cash


The idea of ​​†‹вЂ‹ the formation of BCH began in 2017, as a solution to the issue of transaction speed on the Bitcoin network.


Due to that, there was a hard fork that caused the Bitcoin network to separate from the BCH network. Bitcoin as the previous network is still with the same technology while BCH as the new network is implemented with innovation.


While disagreements arose regarding network division because BCH was considered more complex with larger block sizes and demanded more powerful computing technology, one of Bitcoin’s earliest investors, Roger Ver claimed BCH was far more useful because of its large transaction size than Bitcoin.




Bitcoin Cash ABC (BCHA), Bitcoin SV (BSV)


Both BCHA and BSV are actually the result of the Bitcoin Cash fork.



BCHA is similar to BCH but there is a slight difference where the network re-invests 8% of each block reward to do network innovation. If Bitcoin Cash only receives funds, BCHA is more "developer-centric".


BSV, better known as Bitcoin Satoshi Vision is a callback to the original Bitcoin white paper which does not have a second-layer solution such as Lightning Network. BSV focuses on stability by giving a larger block size than BCH.


Bitcoin Cash (BCH) vs Bitcoin (BTC)


BCH


25,000 transactions per block.

Has a larger block (8-32 MB)

Operate faster at a lower cost (around $ 0.03).

Supports smart contracts and apps like CashShuffle and CashFusion.

BTC


1,000-1,500 transactions per block.

Small block size (1MB).

A relatively slow operating rate, around 10 minutes at a high cost (highest recorded in April, $ 60).

To this day, Bitcoin Cash is among the most well -known Bitcoin hard forks compared to Bitcoin XT, Bitcoin Classic (BXC) and Bitcoin Gold (BTG).


Maybe investing in BCH is a good move but when compared to Bitcoin, of course BTC is much more popular. This also means more businesses receive BTC than BCH.