The Ultimate Beginner’s Guide to Bitcoin Cash (BCH): How It Works and Why It Matters
As someone new to the world of crypto, you may have heard about Bitcoin Cash (BCH). In this guide, we will cover everything you need to know about BCH. Including how it works, why it is better than Bitcoin (BTC), and how to cash out.
So, let’s take a look at how this works.
How Does Bitcoin Cash (BCH) Work?
First, let’s explore its creation. In August 2017, BCH emerged as a cryptocurrency through a hard fork in the Bitcoin blockchain. A group of proactive miners and developers initiated this fork, driven by concerns over Bitcoin’s scalability. They firmly believed that the 1 MB block size limit of Bitcoin was inadequate to handle the increasing volume of transactions and users on the network.
To address this issue, BCH took action by increasing the block size to 8 MB. Subsequently it was raised to 32 MB in November 2018.
This larger block size allows for more transactions to be processed per block, increasing the speed of transactions and lowering fees. Additionally, it uses the proof-of-work consensus mechanism, meaning miners must solve complex algorithms to validate transactions and earn rewards.
BCH is designed as a medium of exchange, similar to traditional currencies, enabling its use for online and in-store purchases of goods and services.
It has a market capitalization of over $10 billion, making it one of the most valuable cryptocurrencies in the world.
Why Bitcoin Cash (BCH) is Better Than Bitcoin (BTC)
BCH offers several advantages over Bitcoin, so many believe it is better. One of the main advantages is the larger block size, which allows for faster and cheaper transactions.
Bitcoin transactions often require several minutes or even hours to confirm, whereas BCH transactions typically confirm within minutes.
Another advantage is that it has lower transaction fees than Bitcoin. Bitcoin fees can be quite high during times of high network congestion, while Bitcoin Cash fees remain low even during peak usage.
BCH has a more decentralized development team than Bitcoin. Bitcoin Cash thrives with diverse contributors, unlike Bitcoin, which is controlled by a small group of developers.
What is the point of Bitcoin Cash (BCH)?
Bitcoin Cash aims to be a global, fast, cheap, and reliable medium of exchange for everyone. Bitcoin Cash increases block sizes to process more transactions and solve Bitcoin’s scalability issues.
Additionally, BCH is designed to be more accessible and user-friendly than Bitcoin. Bitcoin Cash wallets are easy to use and can be downloaded on smartphones and computers. Users can also buy this cryptocurrency using fiat currency or other cryptocurrencies.
The Difference Between Bitcoin Cash (BCH) and Bitcoin SV
Bitcoin Cash and Bitcoin SV (BSV) are two separate cryptocurrencies created due to the Bitcoin Cash hard fork. While Bitcoin Cash increased the block size to 8 MB, Bitcoin SV increased it to a massive 128 MB.
SV has a different development team than BCH and has been criticized for being more centralized.
In addition, BCH surpasses SV in market capitalization and enjoys broader acceptance as a payment method.
How to Cash Out Bitcoin Cash (BCH)
Cashing out BCH is a relatively simple process. First, you need to have a BCH wallet that supports withdrawals in fiat currency. Sell your assets on exchanges like Binance, Coinbase, or Kraken that support BCH trading pairs.
Once you have sold, you can withdraw the funds to your bank account or another payment method. Some exchanges may require you to complete a verification process before withdrawing funds.
Conclusion
Bitcoin Cash is a cryptocurrency that offers several advantages over Bitcoin, including faster and cheaper transactions, lower fees, and a more decentralized development team. It is designed to be a fast and reliable medium of exchange that can be used by anyone, anywhere in the world.
If you are interested in buying Bitcoin Cash, you can do so on a crypto exchange that supports BCH trading pairs. Just be sure to do your research and choose a reputable exchange with a good track record.
Overall, BCH is a promising crypto with a bright future ahead. As more people become aware of its advantages, it will likely gain wider acceptance as a form of payment and increase in value over time.