Bitcoin Cash – the Younger and Better Brother of Bitcoin

Bitcoin is currently the most expensive cryptocurrency on the market and the history of its development and price shows that investing in virtual coins can turn out to be very effective. However, BTC still relies on outdated technology, which has prompted a need for change. Changes that turned into a new cryptocurrency – Bitcoin Cash.

A Split in the BTC Family              

Bitcoin Cash, or BCH for short, was created in August 2017 as a result of a split in the main cryptocurrency chain. This split arose as a result of a disagreement in the BTC community about the future of Bitcoin. However… let’s start from the beginning.

The first successes of BTC showed the world that cryptocurrencies can become the future of the investment market, a new branch of finance and a modern form of payment. Bitcoin could be a prophecy of huge changes in the market, but it was limited by the outdated technology it used. Therefore, work on improving BTC has commenced.

The new Bitcoin was to function as a modernized version of the old cryptocurrency adapted to modern requirements. It was supposed to reduce the cost of transfers and have greater transaction scalability. However, all these changes could have resulted in the old Bitcoin being replaced with a new one, and this could affect its value. Such a solution could not be accepted by the majority of investors, shareholders and users. Therefore, there was a division in the Bitcoin family. One group continued to watch over the value of the classic BTC, while the other decided to create a new cryptocurrency – Bitcoin Cash.

Old Name – New Technology

The creators of the Bitcoin Cash technology have reached for classic and modern solutions, which means that BCH uses blockchain technology, but with a larger block size from 1MB to 32 MB. By increasing the number of blocks, BCH enables customers to perform more transactions and minimize their costs making it faster and cheaper to use.

Another innovation is the BCH code base using a script system in transaction and a protocol that enables creating the so-called Colored coins for simplifying smart contracts and performing automated functions. BCH is not only a cryptocurrency, but also a settlement platform that international corporations are starting to reach for.

BCH and BTC are therefore brothers, but only by name. This is because there are a lot of differences between cryptocurrencies, and one of the most important is bandwidth. The original BTC allows you to make only 7-15 transactions per second, and when the network is heavily loaded, its throughput decreases. However, in the case of BCH the cryptocurrency has no problem with increasing capacity, which means that it can make almost eight times more transfers per second, without fear of a sudden drop in performance.

Bitcoin vs Bitcoin Cash – Price Breaks?

Bitcoin Cash had its debut on the crypto-exchange in the second half of 2017, with a rate of around 70$ per unit. The huge interest in the cryptocurrency made the rate increase very quickly, until it reached over 30,000 $ per unit at the end of the year. It was the highest BCH rate in history so far. Unfortunately, at the beginning of 2018, its value began to slowly decline, which was caused by changes on the market and the so-called Crypto-winter.

Throughout 2019, the cryptocurrency maintained a stable value, making small but regular jumps in value in the range of 200-400$ per unit. This made BCH one of the most stable cryptocurrencies on the market. The twilight of crypto-winter resulted in further changes in BCH prices, the value of which at times reached over 500$ per unit. Despite the tough investment market and economic turmoil in 2020, BCH was still one of the most stable cryptocurrencies on the market. This means that thanks to its technology and the trust of investors, it has become one of the most important e-coins on the crypto-exchange.

Regularly investing in BCH paid off as early as the beginning of 2021, when investors saw regular increases in the price of the cryptocurrency. Since the beginning of the year, Bitcoin Cash has been increasing its value by regularly and persistently climbing the top of the most popular cryptocurrencies. This development means that BCH may turn out to be one of the most profitable investments not only in 2021.

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