March 30th, 2018
Bitcoin made its first appearance in 2009, and over the years has grown more popular than ever imagined. Currently, Bitcoin is not only the world’s first, but also most stable, digital currency. With that being said, there are still some loops that Bitcoin need to jump through. One of the biggest issues with this cryptocurrency is its scalability. The size of the block is limited to one MB. This can cause a severe delay in processing transactions
Bitcoin Cash, is a different story entirely. In Bitcoin Cash the block size has been increased from just one MB to eight MBs. The aim of this is to increase the amount of transactions that can be processed by the network at any given time. Bitcoin Cash will enable Bitcoin to compete with the transaction volume of industry giants, like Visa and PayPal. Bitcoin Cash was launched in the summer of 2017 and so far as continued to be a successful component in Bitcoin transactions.
The one MB Limit per block was originally put into place to lower the chances of potential DDOS attacks and spam. When it first began, this function wasn’t affecting anything because there were not as many transactions taking place. Over time however, Bitcoin has grown more popular and this limit has created time issues for users transactions. Around May 2017, the transaction time got out of hand and users reportedly stated that they had to wait up to four days for confirmation of their Bitcoin transaction.
In the beginning of the Bitcoin Cash proposal, many developers were against the idea. They thought that by implementing Bitcoin cash smaller mining operations would go out of business and lead to the centralization of the complete network by massive mining firms. Developers claimed that by freeing up more storage space blocks they could more easily fit more transactions and confirmation time would decrease. But many believed that it was more complicated when compared to the traditional approach.
Bitcoin cash is cheaper to use. The rising fees associated with Bitcoin transactions were one of the main reasons that Bitcoin was created in the first place. Numerous tests conducted before the end of December 2017 found that Bitcoin cash transactions were 99.56 % cheaper than the equivalent transactions on the original Bitcoin network.
At the end of 2017, digital currency users were paying on average $28 in transaction fees! A Bitcoin user even claimed that he had to pay a sixteen dollar fee to send twenty-five dollars in Bitcoin- that’s a 40% commission fee!
In the digital currency world, a hard fork is considered to be a troubling event. Many individuals believe that it is against the principle of immutability of Blockchain. Many critics are worried that the power necessary to process large blocks will push out all smaller miners. This will lead to power being concentrated in the hands of popular or large corporations which can afford advanced and better devices.
Finally, as many who held Bitcoins before the split received an equal amount of Bitcoin tokens, some people raised concerns that these “splits” were nothing but a money-making scheme.
The one important question that is continually being asked around the world, is “should I invest in Bitcoin Cash?” Bitcoin cash hasn’t been in the business for a long time, but it has successfully established itself as a strong cryptocurrency. Currently, it is the world’s fourth-largest cryptocurrency regarding market capitalization, behind Bitcoin, Ripple, and Ethereum. Interestingly, it is the second most valued cryptocurrency after Bitcoin.
Many people have started to consider Bitcoin Cash to be the answer to everything that was wrong with original Bitcoin, which helps in grabbing the attention of new followers every day. Every trading and investment involves risk, do detailed research before investing in Bitcoin cash.
This is a completely independent cryptocurrency and its price is not dependent on original Bitcoin. But it is important to remember that Bitcoin is by far the strongest and dominant cryptocurrency in circulation, so if its value goes up or down all other cryptocurrencies follow the trend.