Bitcoin Cash cryptocurrency
What is the peculiarity of Bitcoin Cash
The origin story of the cryptocurrency is simple: it was formed due to the UAHF activation (hardfork) when the Bitcoin blockchain split into two chains. Initially, Bitmain Technologies announced the realization of the user-activated UASF (softfork). It was on this occasion that the UAHF was conceived. Developer Amaury Sechet revealed this at the Future of Bitcoin conference. He shared his plans and the Bitcoin ABC project as part of his speech.
After the latter project's release, the general public first heard about Bitcoin Cash. This project has much in common with BTC — the difference lies mainly in three new options embedded in the Bitcoin code base.
- Firstly, the block size limit has increased to 8MB.
- Secondly, the retransmission of messages became impossible. The Bitcoin Cash system ensures the peaceful coexistence of the two chains; erasure and replay are eliminated.
- Thirdly, the system offers a modified transaction type, the main advantages of which are solving the problem of quadratic hashing and signing of inputs, positively affecting the security of hardware-type wallets.
Support for miners and exchanges
Many major pools allow to mine Bitcoin Cash today, for example, Binance Pool, ViaBTC, Antpool, F2Pool, BTC.com, Trustpool, and EMCD.
It is also noteworthy that Bitcoin Cash has been on many trading platforms. It has been added to the listing by exchanges such as:
- Binance,
- OKX,
- MEXC,
- Bitget,
- EXMO,
- Kraken, etc.
And with time and the growing popularity of the coin, it also appeared in crypto exchanges.
The maximum value of the coin as of May 2023 was $3785; its current value is $226.
How to get BCH
Users whose private keys were in perfect order received Bitcoin Cash coins as soon as the network branching happened. If you stored the cryptocurrency on an exchange, you had to play by its rules, and each trading platform has its own.
You can now buy the coin in an exchanger or on any supported exchange, having a cryptocurrency wallet. The choice of wallet is also of great importance. High security of storage is offered by:
- Electron Cash,
- Bitcoin Wallet,
- Edge,
- Exodus,
- BRD,
- Guadra,
- Coinomi.
Even more reliability is provided by hardware wallets Keeprey, Ledger, and Trezor. More information can be found in blogs and on the websites of the listed systems.
How to use and sell Bitcoin Cash
Once you have BCH, you can use them in any way you like. For example, with the help of exchanges, you can exchange them for BTC. However, before you take any action, there are a few factors to consider.
Firstly, remember privacy. When you make transactions with BCH, you disclose your addresses for BTC, as they are identical. Secondly, don't forget about security. By spending coins from a BCH address, you compromise one layer of cryptographic security by disclosing public keys.
Despite the support of BCH by some exchanges, it is still not easy to sell it due to low liquidity. It is widely believed that the new asset's value is significantly overvalued. However, do not think the cryptocurrency will depreciate - there is no reason for this.
Bitcoin Cash hardfork in 2020
On 5 November 2020, a hardfork occurred in the Bitcoin Cash network. Bitcoin Cash's largest Bitcoin Cash client up to that point, ABC failed to gain community support, and the blockchain network split into two incompatible chains.
Lead Bitcoin Cash ABC developer Amaury Seshe announced an update to the network in August of that year. By the time of the update, all nodes on the network had to update their software to avoid being left behind on the alternate chain.
The update introduced a new complexity recalculation algorithm, ASERT. Along with it, the problem of block formation procrastination was smoothed out. Another Bitcoin Cash ABC innovation was the Coinbase Rule feature that rejects blocks that do not contribute to the Bitcoin Cash development fund a portion of the rewards they receive. This caused significant controversy, as a substantial part of the community disagreed with the proposal, releasing the BCHN client without support for this option.
