Bitcoin Cash (BCH)

Manuel Valente

Summary

Introduction
The history of the BCH team
How does BCH work?
What are the technical differences between Bitcoin Cash and Bitcoin?
Bitcoin Cash is supported by key influencers
What are BCH tokens used for?
Tokenomics
What are BCH’s projects?
How to buy BCH?
Coinhouse's opinion

Share the article

Open an account

Introduction

Bitcoin Cash (BCH) is a cryptocurrency that emerged in 2017 following a hard fork with Bitcoin.
Designed to be an enhanced version of Bitcoin, Bitcoin Cash aims to offer faster transactions and lower fees, by increasing the block size in the blockchain.
This approach enables more transactions to be processed per block, making Bitcoin Cash particularly suitable for everyday payments and microtransactions.
The project maintains a vision of decentralization, while focusing on the efficiency of digital payments on a global scale. Buy BCH online.

The history of the BCH team

Bitcoin Cash (BCH) was born on August 1, 2017 following a Bitcoin hard fork, the result of differences within the Bitcoin community over how to increase the blockchain‘s scalability.
Originally, Bitcoin Cash was proposed by a group of developers and miners(Bitcoin mining) who felt that increasing the block size was the best solution to enable Bitcoin to process more transactions and thus become a more efficient digital currency for everyday payments.
The Bitcoin Cash team is made up of a decentralized community of developers and contributors.
Several independent development teams are working on the project, such as Bitcoin ABC, Bitcoin Unlimited, and Bitcoin XT.
These teams are working together to improve the Bitcoin Cash protocol while maintaining strong decentralization and avoiding concentration of decision-making power.
Roger Ver, one of Bitcoin’s first promoters and a fervent supporter of Bitcoin Cash, is often associated with the project, although he is not officially part of the development team.

How does BCH work?

Bitcoin Cash (BCH) is a cryptocurrency born in 2017 from a Bitcoin fork.
It aims to improve the speed and efficiency of transactions.
Unlike Bitcoin, Bitcoin Cash increased the block size of its blockchain to 8 MB, then to 32 MB, in order to process more transactions per block.
This translates into lower transaction fees and faster confirmations, making BCH particularly suitable for everyday payments.
Bitcoin Cash retains the principles of decentralization and security, while offering greater scalability for global use.

What are the technical differences between Bitcoin Cash and Bitcoin?

The differences between Bitcoin and Bitcoin Cash are minimal.
At the time of the fork, the only difference was an increase in block size from 1 megabyte (MB) to 8 MB.
Since then, Bitcoin Cash has further increased this limit to 32MB.
In principle, Bitcoin Cash can therefore accommodate around 15 times more transactions than Bitcoin, whose capacity is around 1.8MB after the implementation of SegWit.
However, as the following graph shows, blocks are empty and struggle to exceed 100KB, ten times less than 1MB.
The differences between Bitcoin and Bitcoin Cash are minimal.
At the time of the fork, all that was involved was an increase in block size from 1MB to 8MB.
Even if the blocks were full, increasing the block size every time the Bitcoin network reaches saturation is not a long-term solution.
If Bitcoin usage explodes, infinitely larger blocks would be needed.
This would pose huge problems for the network, as each block would have to be broadcast to the various nodes in the network to keep everyone in sync.
In addition, the size of the blockchain would be disproportionately large, leading to centralization, as fewer people would be willing to hold a copy of the blockchain.
This would weaken the network.
For these reasons, the majority of the Bitcoin community agrees that scaling the Bitcoin network should be achieved through second-tier solutions such as the Lightning Network, which is currently operational but still needs to be improved for seamless use.

Bitcoin Cash is supported by key influencers

If Bitcoin Cash has had, and still has, any success, it’s because it’s been backed by important players in the community. Roger Ver, a pioneer of the Bitcoin ecosystem and a major investor who helped publicize and promote Bitcoin in its early years, is a fervent supporter of Bitcoin Cash, even claiming that it is the real Bitcoin in accordance with Satoshi Nakamoto’s original vision.
Of course, since the real Bitcoin is the one supported by the majority, this argument is invalid, but Roger Ver has considerable resources at his disposal.
In particular, he owns the bitcoin.com website, which can be a source of confusion for newcomers.
In addition to Roger Ver, Chinese mining giant Bitmain, headed by Jihan Wu, has backed Bitcoin Cash.
This led to Wu losing his position as CEO of the company.

What are BCH tokens used for?

Bitcoin Cash tokens (BCH) are mainly used as a means of payment in transactions.
They offer low fees and fast confirmations, making them suitable for everyday purchases.
In addition to their function as digital currency, BCH tokens can be used to transfer value across the network in a decentralized way, without the need for financial intermediaries.
Some users keep BCHs as an investment, hoping for long-term value appreciation.

Tokenomics

Total supply: Bitcoin Cash’s total supply is limited to 21 million BCH, just like its predecessor, Bitcoin.
Block generation rate: A new block is generated every 10 minutes or so, rewarding miners with new BCHs.
This block reward is halved approximately every four years, during an event known as“halving“.
Currently, the reward is 6.25 BCH per block.
Reduced rewards: Bitcoin Cash’s halving mechanism progressively reduces the quantity of new BCH entering the market, which is intended to increase the token’s long-term scarcity.
Transaction fees: Transaction fees on the Bitcoin Cash network are very low compared with Bitcoin, making BCH attractive for daily payments and value transfers.
Initial distribution: During the Bitcoin hard fork that gave rise to Bitcoin Cash in August 2017, all Bitcoin holders received an equivalent amount of BCH.
This initially distributed the BCH tokens among Bitcoin holders.

What are BCH’s projects?

Improved scalability:
- Bitcoin Cash continues to explore ways of increasing its transaction processing capacity to remain competitive.
  Discussions are underway to increase block sizes.
Integration with Payment Platforms:
- Bitcoin Cash is actively working on integrating with various payment and e-commerce platforms to facilitate its use as a digital currency for everyday payments.
  This includes partnerships with payment processors, online stores and financial services.
SmartBCH development:
- SmartBCH is a sidechain that brings smart contract functionality to Bitcoin Cash, similar to Ethereum.
  This project aims to attract developers of decentralized applications (dApps) to the Bitcoin Cash platform, thereby expanding its ecosystem.
Adoption in developing countries:
- Bitcoin Cash is particularly targeted at regions where access to banking services is limited.
  Initiatives are in place to promote the adoption of BCH as an alternative to unstable local currencies, particularly in Latin America and Africa.
Enhanced security and confidentiality:
- Privacy and security enhancements are also in the pipeline.
  This includes the integration of solutions such as CashFusion to enhance the confidentiality of transactions on the Bitcoin Cash network.
Education and Community Adoption:
- The Bitcoin Cash community is investing in education to increase adoption.
  This includes the creation of educational resources, tutorials, and campaigns to raise awareness of BCH among the general public.

How to buy BCH?

Create an account: Go to the Coinhouse platform and register by creating an account.
You’ll need to provide some personal information and secure your account with a password.
Verify your identity: To comply with regulations, you’ll need to verify your identity by uploading proof of identity and following the KYC (Know Your Customer) verification process.
Deposit funds: Once your account has been verified, you can deposit funds in euros or stablecoins (such asUSDC) via credit card or bank transfer.
Buy BCH: Go to the available cryptocurrencies section, select Bitcoin Cash (BCH), and follow the instructions to complete your purchase.

Coinhouse's opinion

As mentioned above, we view Bitcoin Cash primarily as a speculative investment.
We believe that, on a fundamental level, Bitcoin Cash’s value proposition is very weak compared to Bitcoin because it is not the chain supported by the majority of the Bitcoin community, which is a consensus network.
The Bitcoin Cash network has much less computing power than Bitcoin, as well as fewer users, making it less secure and more susceptible to attack.
All this is not to say that Bitcoin Cash cannot rise in value at certain times, but this asset is more easily manipulated by unscrupulous investors with substantial financial resources.
This information should be taken into account before investing in Bitcoin Cash and any Bitcoin fork.
For tailor-made support in your cryptoasset investments, as well as relevant market and project analyses, discover Coinhouse’s Premium status, and benefit from the assistance of our experts!