What is Bitcoin Cash and Why was Bitcoin Cash Created?

Bitcoin Cash Bitcoin - What is Bitcoin Cash and Why was Bitcoin Cash Created? Bitcoin Cash (BCH) is an upgraded version of Bitcoin Core software. It was released on August 1, 2017.

The main upgrade offered by Bitcoin Cash is an increase in blocksize limit to 8mb. This effectively allows miners in the BCH chain to process more payments per second. This makes transactions faster, cheaper and a much smoother user experience.
bitcoin cash to bitcoin compared
Bitcoin Cash and Bitcoin Comparing

Why Bitcoin Cash Created?

Bitcoin Cash was created to restore the essential quality of money embedded in the original Bitcoin software. Over the years, these qualities are screened from Bitcoin Core and its progress is hampered by the various people, organizations, and companies involved in the development of the Bitcoin protocol. The result is Bitcoin Core currently can not be used as money because of the higher cost per transaction and the transfer time takes hours to days. This is all because of the problems created by the full Bitcoin Core block.

Basically, "blocks" are groupings of new transactions added to the blockchain. In Bitcoin, transactions are processed block by block. Bitcoin is designed to target 6 blocks per hour, or one every ten minutes.

bitcoin cash blockstream
Bitcoin Cash Blocksstream

A few years ago, an artificial boundary for block size was added to Bitcoin Core code to prevent possible vector attacks where a large number of transactions could weaken the network. At that time, free transactions were made, so an attacker could send a large number of transactions between his own wallet, forcing others on the network to download and store large amounts of data.

Block size limits are set as high as 1MB (the storage size offered by floppy disks from the mid-1980s). At that time, it is still thousands of times higher than the actual usage of the requested network. It is clear that the block size limit is never intended to restrain network growth, but only to defend against theoretical attack vectors.

Bitcoin user adoption begins slowly, and only in 2012 the blockchain processes 250 transactions per block, or about 1,500 transactions per hour.

It will take two more years for this number to double, and by 2014 the Bitcoin network processes 500 transactions per block. Currently, the Core Bitcoin network is at maximum capacity and processing around 2,500 transactions per block.
bitcoin cash average number of transaction per block
Bitcoin Cash average number of transaction per block.

Small artificial blocs cause network congestion due to the increased demand for bitcoin transactions. Remember, to be verified and processed, bitcoin transactions must be included in a block. If the block is full, your transaction must wait to be included in the next block, but the next block is full because other people pay higher fees than you, and others.

This congestion has caused an ever-increasing "cost market" where users pay extra to "cut the line" and move their transactions to the top of the list of pending transactions, known as mempool. At the time of publication, there were more than 280,000 unconfirmed Bitcoin Core transactions.

To make matters worse, Bitcoin Core developers are unwilling or unable to increase block size for Bitcoin scale with demand. In their own words, Bitcoin Core developers see this "cost market" and transaction savings as a positive feature of the Bitcoin Core network.

This has led to many communities creating alternative security crypto due to frustration with Bitcoin Core increases due to rising costs and the time transactions take longer and longer. As a result, Bitcoin Core has lost nearly 100% market share in crypto space to below 50% at the time of publication.

Enter Bitcoin Cash: Community-enabled upgrades (otherwise known as hard forks) Bitcoin that increases block size to 8MB, resolves scaling issues that interfere with Bitcoin Core today.

bitcoin cash transaction nothing wrong with full blocks
Bitcoin Cash transaction nothing wrong with full blocks.

Block size? What is it again

To illustrate how block size limits affect transaction speeds and costs on blockchain, let's use the following example:
It's Saturday night and you'll visit the hottest clubs in town. Before this club became a big deal, it was a small local joint with a cool crowd, good music, and reasonably priced drinks in a small place.

Suddenly, people start talking about this place and tell their friends, and now everyone wants to go in. The problem is, the club is in a building that can only accommodate 2,500 people. In this analogy, consider the club as a "block", with limited storage capacity or size, and think of each protector as a bitcoin transaction.

When the club (block) is full of 2,500 people (transactions), the guard officer is instructed to form a line and start filling up the higher incremental fees (transaction fee) to enter. More and more people continue to come to the hottest clubs in town, and to this day, the situation is so bad that the limit of people waiting outside is about 270,000 people and the average cost of viewing is as high as $140. You have been waiting patiently for hours to get in, but people who are willing to pay more than you keep jumping to the front line and keeping the club full. Worse, every person (transaction) is only allowed to bid for a cover fee once. When you first queue up, you think that paying $20 will be enough for you to get in quickly, but now a few thousand more people join them and say they will pay more than you. There is nothing you can do but wait until everyone pays more than you get and the doorman walks around to let you in.

Despite this situation and many complaints from the public, the club management stubbornly refuses to move or build a larger building, and insists that a full club and ten times as many customers lining up outside is not only good for business but will also make it is impossible to expand their buildings to accommodate more customers even if they want it.

At Bitcoin Core, the board is a row of people waiting to get into the club and the transaction fee is the extra cost that the keeper needs to let you into the 2,500-capacity club.

At an average cost of as high as $140 per transaction and a line of over 270,000 unconfirmed transactions, Bitcoin Core, a system that was created explicitly into a "peer-to-peer-electronic cash system" has now become unusable for merchants. and has priced most users in the developed world, let alone the overall user in smaller developing countries.

Is Bitcoin Cash cheaper to use than Bitcoin Core?
Yes. Since transaction costs in both versions of Bitcoin are measured in satoshis-by-byte (Bitcoin units can be divided into 8 decimal places and the smallest unit is called "satoshi") the way you accurately measure the cost of Bitcoin not entering dollars, but in satoshis.

Since the Bitcoin Core block is always full and there is a large row of people, at present, the bouncer fills more than 900 satoshis per byte to put in a block. At time of writing, it costs more than $30 to make a single Bitcoin transaction.

For comparison, the average cost of Bitcoin Cash is 19 satoshis per byte. With Bitcoin Cash, you can also set the cost manually as low as 2 satoshis per byte and put into the next block, as there is plenty of room for everyone who wants to send transactions.

bitcoin fees average overtime
Bitcoin fees average overtime.
Core Bitcoin costs above $30 on December 21, 2017. This means that addresses with less than $30 in them will be unusable because someone has to pay at least $30 to broadcast the transaction.
Imagine trying to buy a sandwich for $7 and being told by the cashier, "That would be $37, please." Even an address with $100 on it will lose thirty percent of their money once they try to use it. Imagine you give your friends a $100 bill, but once changed hands, it costs just $70 for them. Once they use it, the price becomes just $40. This is the current state of Bitcoin Core, completely broken.

Is Bitcoin Core Still Useful?
Bitcoin Core proponents often say that Bitcoin Core was never intended to be a currency and that the actual classification is as a store of value, or "digital gold".
bitcoin cash and bitcoin percentage of total market cap
Bitcoins percentage of total market cap.
To that end, they embrace and even encourage high costs and slow down transaction time. Despite the fact that this is in direct conflict with the spirit of Bitcoin whitepaper-Bitcoin: Peer-to-Peer Electronic Money System - such claims are absurd because something can only be a storage value with respect to its ability to store and recall utility If you lose more value from $30 each time you want to use it, do you store value or lose value? Bitcoin Core, until the end of 2017, is more appropriately understood as a speculative asset and unreliable volatility serves as a store of value, let alone a form of money.

Bitcoin Core and Bitcoin Cash are currencies supported by demand. What gives Bitcoin a value is the combination of utilities as currency and the fact that people want and want to own it.
Bitcoin Core no longer functions as a currency because of its incredible cost and slow confirmation time. However, as long as the demand for coins continues, Bitcoin Core will continue to sell significant value on the open exchange.
bitcoin cash bitcoin chart
Bitcoins percentage of total market cap.
Is Bitcoin Cash an Altcoin?
Bitcoin's cash is Bitcoin. It is important to note that Bitcoin Cash is not an altcoin or knock-off of Bitcoin Core. Bitcoin Cash is a hard fork for Bitcoin Core, which means it shares the same book of transactions and Bitcoin Core history, and fits the Bitcoin Core code base until divergence on August 1, 2017.
The reality is Bitcoin Cash is Bitcoin as it is meant to be - an electronic peer-to-peer cash system. This does not mean BCH is BTC. Of course, these two versions of Bitcoin are different networks, have different ticker symbols, and are traded at different prices. But Bitcoin Cash, which is much larger, functions as a Bitcoin, a digital cash system worldwide believed and invested during the early years of adoption that led to the worldwide Bitcoin phenomenon as it is known today. This spirit really lives in Bitcoin Cash and is totally absent in Bitcoin Core and claims to be "value storage."

Low transaction costs and fast confirmation times mean that both merchants and users from around the world can use and accept Bitcoin Cash technology, benefiting themselves and their local economies while doing so.

The burden is now on Bitcoin Core to justify the ~ $15,000 price tag when dealing with an affordable and improved Bitcoin version of Bitcoin Cash.

What are the Benefits of Bitcoin Cash?
The average cost of Bitcoin Cash transactions is worth of senon (or less) and confirm in an average of 10 minutes, because the expenditure of pending transactions is deleted every new block. This means that Bitcoin Cash can be used in the same way as ... well, cash.
Where can I buy Bitcoin Cash?
Coinbase and its exchange GDAX recently announced full buying and selling support for Bitcoin Cash. Create an account and make your first BCH purchase. You can also find a list of local buyers and sellers through the LocalBitcoinCash platform. Instant crypto-to-crypto exchange such as Shapeshift and Changelly also support BTC conversion to BCH. Also, the Bitcoin Wallet will have ShapeShift integration starting early 2018. For the Canadians, nTrust is also an option.

For a complete list of websites to buy and sell Bitcoin Cash, check out the exchange list at BitcoinCash dot org.
What Do People Do With Bitcoin Cash?
Cash Bitcoin is used for e-commerce, games, publishing, micro transactions, and other online payments today. Here is a short list of popular sites and services where you can use Bitcoin Cash:
Initiative Accept Bitcoin Cash - List of sites / merchants curated by community receiving Bitcoin Cash
Yours dot org - popular content publishing platform where you can get paid and pay others for quality content
Tippr - tipbot for Reddit and Twitter
Bitpay - A leading payment solution that offers Bitcoin Cash loaded Visa debit cards
Awesome Bitcoin Cash - Pages featuring other Cash Bitcoin merchants, information, and projects

Why Some People Call Bitcoin Cash "bcash"?
There are some who oppose the existence of Bitcoin Cash for personal reasons and want to weaken it as an alternative to Bitcoin. Instead of offering technical or economic criticism from Bitcoin Cash, these people call Bitcoin Cash a "bcash" in social media in the hope that this nickname will cause confusion and reduce adoption rates.

If your wallet or exchange uses the term "bcash", they tend to refer to Bitcoin Cash; However, it should be noted that "bcash" is not a proper name, or Bitcoin Cash commonly used abbreviation, and is a hostile attempt to confuse users. Better to do with caution when dealing with anyone who will use the term "bcash" and not the real name of the currency, Bitcoin Cash.

How can I get involved?
Join the discussion: People around the world talk about Bitcoin Cash. Join Twitter, Reddit, Bitcoin forums, or start a discussion in the community you are part of!

Attend meetings: Many cities around the world have held Bitcoin Cash meetings, including Tokyo, Oslo, San Francisco, Seattle, Seoul, London, Helsinki, and more! Not seeing your city Start your own page on Meetup.com, and pass it to The Bitcoin Cash Fund to get marketing and merchandise support.

Also Read: Bitcoin Falls Free at Early February 2018.

Helping merchant adoption: Money is useful to pay for goods and services, and having a business ecosystem that supports Bitcoin Cash is very important. Running a business? Consider receiving Bitcoin Cash! Or talk to your favorite local business on how to receive it.

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