Bitcoin (BTC) has become more and more popular, the amount of time it takes to process a transaction has become slower and slower. It has also made the cost of each transaction more expensive for the sender.
To improve the current Bitcoin system, Bitcoin Cash (BCH) was created! And they seem to be doing an excellent job so far — although it was only released in August 2017, Bitcoin Cash has already become a top 5 cryptocurrency!
But are you still asking yourself “What is Bitcoin Cash”? Well, don’t worry, all will be revealed in this article!
This guide will tell you everything you need to know about the what is Bitcoin Cash question, why it was created and what it actually does.
Once you have understood the basics, we will then explain how you can buy Bitcoin Cash. However, for those feeling really adventurous, we will also show you how to mine it!
So, what are you waiting for, let’s go and explore what is Bitcoin Cash and how it started!
What Is Bitcoin Cash: How It Started?
It all started with agreements and disagreements about how to improve Bitcoin’s technology. You see, one of the problems with Bitcoin is — as more people use it, the networks take longer and longer to process a transaction. It also means that transaction fees become more expensive!
Bitcoin lovers understood that this was becoming a big problem, especially now that the cryptocurrency was getting so popular. To help find a solution, developers suggested two different ideas.
Here’s a real-world example for you: Think about writing each Bitcoin transaction on a blank sheet of paper. First, you would need to write the wallet addresses of both the sender and receiver. Then, you need to write the individual signatures for each transaction.
Think about it, this would take up quite a lot of space on your sheet of paper!
So, one group of developers suggested separating the one sheet of paper in to two. One sheet of paper would have the addresses of the sender and receiver, while the other sheet would contain the signatures.
Essentially, as there would be more space on the paper, more transactions could be processed!
Another group of developers thought that this was a bad idea. Why? Well, although changing the format of each block would technically increase Bitcoin’s transaction speed, it would only be a temporary solution. So, when the Bitcoin network becomes even more popular, it would require another upgrade.
They thought that the best way to solve Bitcoin’s speed issue was to increase the maximum block size.