What is Bitcoin Cash

Bitcoin Cash was created by the Bitcojn hard fork on August 1, 2017. This fork created a new version of the blockchain with different rules. Bitcoin Cash was created to counteract a prolonged Bitcoin scalability problem. It worked by forking off from the main Bitcoin blockchain to a new branch or version, much like when you computer operating system is updated and the software now has capacity for a larger number of transactions (by eight megabytes to be exact).

Bitcoin Cash in the Markets

The offshoot cryptocurrency launched and was worth $240, whereas Bitcoin was at that time worth $2700. In one month it had more than doubled in value. Since then the young digital currency has more than tripled itself and hit an all-time high of $3,785.82 and a low of $76.93. As with other cryptocurrencies this one sees spikes on news events like being accepted on to large exchanges, and when Bitcoin has a hard time, sometimes people have switched to BCH for its scalability and advanced technology.

But Bitcoin Cash got off to a slow start in the beginning. If it was not for the Bitcoin Cash mining algorithm breathing life into the new instrument, it would not seem as attractive to profit-seeking computer miners. Once the finance markets got wind of this jump and rise in the rate at which the ‘blocks’ were being produced (known as hash rate), traders and investors started to bid up the BCH price, hence its rise in popularity. But now prices are still dropping and this is said to be as a result of poor conditions for its miners (low rewards) and fears over the security of this new technology.

5 Facts You Should Know About Bitcoin Cash

Created from a hard fork of Bitcoin and expected to have quicker reactions to transactions, the Bitcoin Cash fork occurred at block 478,559.
Despite its reasons for creation and its origins, the BCH coin is considered an altcoin for now. It is not Bitcoin and has no direct connection to Bitcoin’s value.
Having said that, Bitcoin Cash is its own currency and is useful in that it functions just as Bitcoin does only faster due to the increase in its block size.
When the hard fork occurred, the coin held no value at all and investors were able to gain ‘free coins’ – from the split of Bitcoin. As in this case, Bitcoin Cash saw major changes in the market and managed to secure their place in the ‘top coins’ listing by market cap in November 2017.
Investors have speculated that Bitcoin Cash was created only because high fees and slow transactions would destroy Bitcoin, and not because Bitcoin was reaching its maximum output of blocks.

Is Bitcoin Cash the best cryptocurrency for trading?
Cryptocurrencies are known to be extremely volatile at times, with double digit percentage changes not an unusual occurrence. Bitcoin Cash is no different in this respect. There is also a tendency for traders to group into and out of certain tokens in the cryptocurrency markets. This means that at times Bitcoin Cash has been the best cryptocurrency for trading, however that is the exception more than the rule. In general Bitcoin Cash is good for cryptocurrency traders but not any better than the majority of major cryptocurrencies.
What is the difference between Bitcoin Cash and Bitcoin?
Bitcoin Cash was created as a split from Bitcoin, called a fork in blockchain circles, so the two are closely related. Yet they are different and that is the primary reason Bitcoin Cash exists, for those differences. The primary reason for creating Bitcoin Cash was to address the transaction speed of Bitcoin. Because Bitcoin is only able to process 7 transactions per second it is far too slow to be used in any meaningful scale. Bitcoin Cash was created as a way to scale up the number of transactions possible on the network and has been quite successful in that regard. The other difference is not as positive for Bitcoin Cash since it isn’t as secure as Bitcoin.