What is Bitcoin Cash?
Bitcoin Cash arose as an alternative to Bitcoin, and it’s currently between the third and second most valuable cryptocurrency in the world by market cap, after Bitcoin and Ethereum. The founders of Bitcoin Cash created the alternative cryptocurrency on August 1, 2017 to combat the rise in transaction wait times and fees on the original Bitcoin network. Bitcoin Cash increases the number of transactions that can be processed per block.
In this “What is Bitcoin Cash” guide, we’ll go over the history of Bitcoin Cash, its current situation, and how it compares to the original Bitcoin.
Hard Fork: Bitcoin Alternatives and a Divided Community
Before deciding to create a new currency, the folks behind Bitcoin Cash appealed to the original Bitcoin community for an increase in block size. Those in favor of the increase cited greater accessibility and room to grow for the burgeoning Bitcoin user base.
However, there were many opposed to the increase, including miners who would miss the fees for transactions, leading to a decrease in overall mining on the blockchain and lowered security as a result. Opponents also believed that such an increase in network capacity would still lead to storage, bandwidth, and computing requirements outside the reach of the ordinary user.
The Miners: Whose Opinion Really Matters
At the end of the day, discussions on forums and social media about the future of Bitcoin and Bitcoin Cash are less important to the project’s success than the decisions miners make about the new currency.
Since Bitcoin Cash is almost identical to Bitcoin, aside from block size, the two forks would now be competing for mining power.
Miners had a choice: take a chance on a new, possibly lucrative venture with greater risk or stick with the tried and tested model on the original Bitcoin mining network.