Forexpamm

Why would Bitcoin Cash defeat Bitcoin?

01.11.2019Cryptocurrency

Why would Bitcoin Cash defeat Bitcoin?

The Bitcoin cryptocurrency has existed since 2009. As you know, the number of coins is limited to 21 million. Until 2017, the cryptocurrency was gradually gaining popularity, and the price of the coin was slowly increasing. Bitcoin demand grew sharply in 2017, and the number of transactions increased significantly. This caused the transaction rate to slow down, and as a result the search for a solution to this problem. The result was the division of the Bitcoin network into two parts and the appearance of a new cryptocurrency – Bitcoin Cash. Bitcoin Kesha’s schedule is on our website.

Read it too:

  1. «Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
  2. «Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash»
  3. «How easy is it to invest in Bitcoin on Forex?»
  4. «How easy is it to trade Crypto-currencies at Forex market?»
  5. «What happens to Bitcoin in 2018?“»
  6. «The future of IOTA: Why does Tangle beat Blockchain Iota’s forecasts for 2018»
  7. «How to Buy Bitcoin Online. ” Fast. | ” The best 5 ways to do it»

History and reasons of origin

The need for Bitcoin updates

Bitcoin Cash was the result of a disagreement within the Bitcoin community when a global update was needed. By May 2017, the code of the main cryptocurrency was outdated. Limiting the block in the Bitcoin chain to one megabyte was of little importance as long as the transactions were small, but protected against DDoS attacks. As a result of the popularity of Bitcoin, the volume of transactions has increased significantly and ceased to fit into one block at a time. Transactions were not confirmed for a long time, and the cost of transfers increased. In a bitcoin network, you can speed up the processing of a transaction by offering more payment. But this limits the use of cryptocurrency and makes it unattractive for payments.

Options for improvements

This situation has become a threat to the stability of the system and to the exchange rate of Bitcoin in the market. Two options were proposed. Many miners have offered to remove the block size limitation. This could eliminate the queue and increase the profitability of production. But the developers were against it, because the removal of the limit leads to an increase in the power of the equipment and a decrease in safety. The second option was to move a part of the transaction history beyond blockchain. The English name of this process is Segregated Witness, abbreviated as “SegWit”. This allows you to free up a lot of space in the block and increase the speed of transactions.The second method also has disadvantages, as it only temporarily solves the problem. Discussions resulted in a compromise protocol called “SegWit2x”. The size of the block was increased to two megabytes, and some of the information was converted into separate files outside the chain. But then the block enlargement was temporarily delayed. 95% of the community voted for such a decision. A global update of the Bitcoin system was planned for August 1.

The appearance of Bitcoin Cash

But a group of developers who disagree with the “SegWit2x” protocol announced a branch from the main circuit and the creation of a new cryptocurrency with the preservation of blockchain structure and the increase of the block up to 8 megabytes. The new branch was named Bitcoin Cash. As planned, on August 1, the main network was upgraded and the first block of the new Bitcoin Cash Chain appeared.

Features of Bitcoin Cash

The cryptocurrencies that were created after the Bitcoin were generally referred to as “Altcoins”, i.e., alternative ones. The alto-coins are based on the bitcoin code, which was changed in each new cryptocurrency according to its purpose. In Bitcoin Cash system the code has not changed much, and the history of transactions has remained the same. All Bitcoin owners received as many new coins as they had before. Transactions of the new cryptocurrency could be carried out from the same wallets and with the same keys. But there were already different assets at stake. The speed of operations has increased immediately.The difference of Bitcoin Cash is that the network bandwidth increased up to two million operations per day, while in standard bitcoin it is 250 thousand. Secures against erasure and retransactions. The type of transactions has also been changed. Incoming values are signed according to the new scheme of operations. This ensures that your hardware wallets are secure and simplifies encryption.Anyway, Bitcoin Cash can’t be called Altcoin. It’s just a modified Bitcoin, with a slightly different purpose. Classic Bitcoin becomes an investment target, a method of preserving capital, and Bitcoin Cash is used more for cash transactions. Mining of the new cryptocurrency does not differ much from the classical one, although it is not so profitable. It’s reported that several large Hong Kong pools are involved. By the end of 2017, over 16 million coins had been produced.

Bitcoin Cash exchange rate dynamics

Futures for the new cryptocurrency started trading at the end of July 2017, before its official launch. The first price was $555, but immediately after August 1, prices fell to $248, as new owners immediately began selling Bitcoin Cash. Prices rose above 700$, but soon stabilized around 300$. This lasted until November, when the $1,000 mark was passed. During the month the rate fluctuated in the range of $ 1300-1600, and in December began a sharp rise to $ 4000. By the end of the year, prices are falling and are likely to stabilize around $2,000. If you compare these movements with the dynamics of the Bitcoin course, you can see that they are very similar. Which means that Bitcoin Cash depends on the classic Bitcoin.

Bitcoin Cash Outlook

According to the statistics of the new cryptocurrency after its appearance, very small part of exchange participants trusted it. But in a few months this number has increased from 3% to 10%. By capitalization, Bitcoin Cash is in third place after Ephirium. This indicates the acceleration of the new coin development and stability of its position in the world of cryptocurrencies. Immediately after the issue of the cryptocurrency, it was listed on the largest cryptocurrency exchanges. Now she’s trading on all the popular stock exchanges. CFD and Forex brokers, for example, the Russian company EXNESS add Bitcoin Cash to the lists of trading instruments. Be sure to read the rating of Forex brokers in Russia and compare the company to the unique trading instruments in the Russian Federation and CISThe characteristics of the Bitcoin Cash cryptocurrency are fully compliant with modern requirements. It provides high transaction speed and reliable protection. These qualities allow it to reach the level of classic bitcoin after a while. It’s gonna take a while before anyone knows. It is known that two network upgrades are planned for 2018, which may bring Bitcoin Cash to a new level.

Read it too:

  1. «Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
  2. «Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash»
  3. «How easy is it to invest in Bitcoin on Forex?»
  4. «How easy is it to trade Crypto-currencies at Forex market?»
  5. «What happens to Bitcoin in 2018?“»
  6. «The future of IOTA: Why does Tangle beat Blockchain Iota’s forecasts for 2018»
  7. «How to Buy Bitcoin Online. ” Fast. | ” The best 5 ways to do it»

Brokers who have Bitcoin trading available 

  1. XM.com
  2. Etoro
  3. Plus500
  4. Instaforex
  5. FXTM

RBC experts on the prospects of Bitcoin Cash