Bitcoin Cash in 2021
People from all over the world have heard of Bitcoin or even used it. It is the beacon of cryptocurrency, and its incredible bull run in early 2021 made it shine brighter than ever.
Of course, when there is a cryptocurrency like Bitcoin Cash, we can't help but wonder if it's related to Bitcoin or another cryptocurrency. In fact, the answer to both of these questions is yes. Let's take a look at what Bitcoin Cash is and whether it is a good investment.
What is Bitcoin Cash?
Bitcoin Cash (BCH) was launched in August 2017 as a result of a hard fork of the Bitcoin (BTC) blockchain. A hard fork is essentially a blockchain divided into two parts, each of which becomes its own cryptocurrency with its own unique blockchain: https://nsbroker.com/xbt-usd.
Unlike a soft fork, which is a blockchain upgrade where only one of the splittable parts of the blockchain remains valid. This way, when the fork occurs, anyone holding BTC will receive the same amount of BCH.
The formation of BCH happened as a result of disagreements within the BTC community. BTC miner and developer groups were worried about its scalability, and they were not sure about the plans of the BTC blockchain to adopt segregated witness (SegWit) technology.
These groups felt that while necessary (with the increase in the size of the BTC network, the blockchain could barely keep up with the increased transaction volumes), this proposed upgrade was not in line with Satoshi Nakamoto's decentralized philosophy. As a result, they agreed that the only way to overcome the scalability problem is to increase the maximum block size.
Therefore, a hard fork was proposed in which the BTC blockchain would be split into two parts. One of them will process more transactions at a faster rate than BTC. This is how BCH was born.
Roger Ver, an early BTC investor known as "Bitcoin Jesus", invested $ 25,000 in Bitcoin when it was worth $ 1 in 2011. Roger Ver co-founded BCH and is actively involved in the development of cryptocurrency to this day.
In an interview with Forbes in 2019, he said he was working to "partner with big companies to make BitcoinCash in demand in real commerce for real people and real businesses." And he intriguingly added, "that eventually the cryptocurrency will surpass the market capitalization of BTC."
How is Bitcoin Cash mined?
The technology behind BCH is exactly the same as BTC. The cryptocurrency has a blockchain that acts like a ledger and records every transaction. As with BTC mining, miners use powerful computers to solve complex math problems to validate transactions and thus add new blocks to the blockchain. For this, miners receive a reward in the form of cryptocurrency. The block reward for miners is currently 6.25 BCH after halving in April 2020.
However, while the technology is the same, there are some fundamental differences between the two cryptocurrencies.