Bitcoin Cash comes from Bitcoin. It’s based on the same technology and it’s used the same way, but it’s a unique variation that is separate from the world’s first and most famous cryptocurrency. Here’s what you need to know.
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Bitcoin Cash is a cryptocurrency that was created in 2017 from a “fork” in the original Bitcoin blockchain. Think of it as a branch on a family tree that can then form new branches of its own.
Just like Bitcoin, Bitcoin Cash is:Decentralized and not backed by a bank or government Processed, validated and logged on a blockchain Anonymous Finite and therefore impervious to inflation — just like Bitcoin, only 21 million will ever be made
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The original Bitcoin blockchain had big problems that involved complicated stuff like signature data, block size and a technology known as segregated witness, all of which is beyond the scope of this article. Basically, Bitcoin outgrew its blockchain, which was made from small blocks that got clogged as Bitcoin’s popularity surged. As more people joined, the system became harder to scale. Both transaction times and transaction costs grew so high that Bitcoin’s chief miners and producers worried about its viability.
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They responded by creating what is known as the Hard Fork, a deviation from the original Bitcoin chain. The new chain had bigger blocks that could be scaled to accommodate Bitcoin’s ever-growing user base. Since it sped up processing times and reduced costs enough to let Bitcoin be used just like cash, the only fitting name was Bitcoin Cash.How Much Is Bitcoin Cash Worth?