Bitcoin Cash is the world’s 4th largest Cryptocurrency and Blockchain platform on market capitalization out of the 2080 Cryptos. It was created in mid-2017 following a hard fork on Bitcoin to create a platform with a larger Block size limit. In November 2018, Bitcoin Cash has undergone another hard fork due to a community disagreement resulting in two separate Coins-Bitcoin Cash SV, and Bitcoin Cash ABC.
About Bitcoin Cash
Bitcoin Cash is an electronic cash system that has peer-to-peer features. Its characteristics include a decentralized Cryptocurrency and a permissionless Blockchain that is transparent and easy to use.
The following are benefits of using Bitcoin Cash;
• Users can send unlimited payments to any part of the world for low fees.
• Peers can be their own banks which give them independence from institutional risks such as the sudden collapse of a Bank or harsh government policies like freezing of accounts.
• BCH proffers more anonymity and privacy than credit cards or bank transactions that can be easily traced by hackers or the government.
• BCH supports global payment transactions in an easy and transparent way.
• Due to the elimination of third parties, merchants accepting BCH avoid card fees and account management charges.
• Lastly, BCH is a scarce digital resource that has the potential to surge in value in the future as demand increases. There are only 21 million BCH in existence following the mid-2017 hard fork and this aspect makes BCH be a unique form of sound money.
Bitcoin Cash First Hard Fork
Bitcoin (BTC) was becoming very hard to acquire following increasing expenses of acquiring ASIC Mining Chips and affording power. This had the effect of disillusioning a lot of users as BTC ran on a settlement layer rather than a secondary layer.
Meanwhile, Bitcoin Cash proponents argued that the true Bitcoin platform should run on a simple internet connection and be easy to mine. For this reason, the model that a hard fork was to implement entailed raising the size of a Block to a height of 478559. This would in turn, according to Haipo Yang of ViaBTC, introduce a Simple Payment Verification (SPV) format for platform management. Meaning that BCH payments could be, for the first time, verifiable without validating a whole block.
The implication was that there emerged two Blockchains-Bitcoin Core (BTC) and Bitcoin Cash (BCH). Some holders of BTC could acquire BCH at the same exchange rate.
Bitcoin Cash Second Fork
On November 15th, 2018, Bitcoin Cash underwent a second hard fork following disagreements between two factions led by Roger Ver of Bitmain and Craig Wright who claims to be the real Satoshi Nakamoto.
The first group advocates for a Bitcoin Cash ABC (Adjustable Block size Cap). The group wants the platform to remain as per the original Bitcoin Cash hard fork vision but only implement a scaling up of blocks through a two-prolonged approach.
Meanwhile, the second group proposes Bitcoin Cash SV (Santoshi Version) that they claim to be the real Bitcoin concept. The new platform has a bigger Block size provision of 128 MB from the current 32 MB.
It is important to note that BCH ABC has retained the BCH symbol and the hard fork is now BCH SV.