Even though Bitcoin Cash has been around for barely three years, it is gradually gaining prominence as the to-go-to cryptocurrency. This because its design is usable, scalable, extensible, and convenient. Its convenience has led numerous banks such as JP Morgan, Barclays, UBS, Standard Chartered, and Citi Bank, to deal with it.
An Overview of the development of Bitcoin Cash
The Bitcoin community formulated Bitcoin Cash in 2017 as a fork of Bitcoin. Some members of the Bitcoin community were dissatisfied with the block size and the treatment of bitcoin as a digital currency rather than transactional currency, and so they decided to upgrade bitcoin. They increased the coin’s memory to 32Mb to perform more transactions per second on the blockchain. The money also allows large blocks of transactions in the blockchain.
Over the years, Bitcoin cash has split due to rivalry among its community members. The first clash came in 2017 between the camp led by Roger Ver and John Wu; this group advocated for the maintenance of the block limit to 32Mbs. They also promoted the software entitled Bitcoin ABC. Craig Steven Wright and Calvin Ayre led the other group; they came up with Bitcoin Satoshi(Bitcoin SV), which increased the size limit to 128Mb.
The most recent split of the currency occurred in November 2020. The reason for the division is the proposed update of the network to include a coin rule tax of 8% by the BCH ABC group led by Amaury Sechet. Bitcoin Cash ABC would use the tax to finance protocol development. The Bitcoin Cash Node opposed this upgrade would inconvenience miners considering that they were already making approximately 13% gross margin.
The split affected the prices of the bitcoin cash. Its prices plummeted to a low of $237.54, a 7.3% decrease from the previous figure, according to coin desk. The uncertainty caused by the split led to Grayscales decreasing its investment by 1.6 million dollars. On the other hand, retailers’ investment seemed to increase despite the uncertainty. They invested 1.5 million US dollars.
The investment patterns by the users of the currency have, however, been established primarily for the bitcoin cash node group whose prices rose due to their policy of no taxation. Bitcoin cash has also started experiencing a rise in their prices because they promise to deal with both BCN and ABC investors
Benefits of using Bitcoin Cash.
This currency uses peer to peer computer networks and nodes to help miners verify transactions. Its Segregated Witness Solution(SegWit) store information in different blocks hence enabling it to process several transactions quickly. Bitcoin cash acceptance in more than 5000 physical locations, online stores, and selected shops and restaurant contributes to its usage by many people worldwide. Some of the wallets used by this currency include Bitcoin.com, Electronic Cash, Mobile Market, and paper wallet. Below are some of the benefits accrued from using bitcoin cash:
Its low fees enable you to send large sums of cash without worrying about transaction costs. They charge less than a penny for their transactions. It provides users with privacy because it does not ask its users for personal financial information like financial institutions. Its decentralized nature enables users to carry out transactions without regulations from traditional institutions like governments and banks. The blockchain of bitcoin cash is secure, easily usable, scalable. It ensures that users can transact quickly and securely. This currency has a robust financial infrastructure that enables it to provide convenient and affordable services to its vast customers worldwide.