What is Bitcoin Cash?
Bitcoin cash is the second creation that comes from the widely successful virtual currency that we all have come to know as Bitcoin. The problem is that this coin is not catching on as many others have ad this is making it harder for people to get involved. The BCH is not dead yet, but it may not be the best choice for a profitable investment. In addition, Bitcoin Cash is not offered by the brokers who offer Bitcoin and this means you have limited options for trading.
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The first thing to understand is that this is not a completely new currency, but instead, it is a coin that was made based on another coin, in this case Bitcoin. It came to be as a result of some Bitcoin miners who felt that some issues need to be addressed. The issue was that Bitcoin block sizes were quite small at 1mb, this means that only a max of 7 transactions could be sent in for processing simultaneously. The rest would have to wait in queue in order to be verified.
This wasn’t much of a problem a few years ago as the number of transactions with Bitcoins was quite small. However, once Bitcoin became popular, the problems became apparent. These problems had not started until a few months ago, but the developers of Bitcoin had started to worry that this day would come. These fears generated divisions in the entire community. Most people said that Bitcoin would need to get checked and polished in order to get rid of this serious limitation.
The solution was through Segregated Witness, this was a proposal that would significantly increase the size of the blocks and reduce the hassles of transactions through the elimination of non-essential data blocks. The problem was that any miners still did not support SegWit2x, and they had decided that they would create their own coin instead as a sing of disapproval.
The point with Bitcoin cash is to increase the block size from the inconvenient 1MB to a much more forgiving 8MB, an increase that is way higher than that of SegWit2x. BCH is also meant to help get rid of other issues that users are experimenting, but it seems like it won’t be able to catch up to Bitcoin now that it has been established.
It’s hard to say what will happen in the next few months, and there is always a certain level of uncertainty and luck factor involved in the process of boosting or losing value that cryptocurrency go through.
The future of bitcoin is a bit unpredictable, but mostly complex, and we will see if this issues can be resolved in order to end up with a solid and balanced coin that meets the needs of everyone involved. That is the kind of thing that people are expecting to be able to see happening soon and this would bring in an even larger number of investors. At the end of the day, it is the investors that make the currencies stand out and grow in value.