Since the beginning of time, humans have always been apt to change. Constant dissatisfaction with existing methodology and continuous search for ways to improve lives is what has to lead us to our modern age. The time and era of physical currencies are currently giving way.
Who knows what will happen 50 years from now?
People and corporations are currently changing the way they transact and pay for goods and services. People no longer like to carry huge cash around and organizations do not always accept it. This condition makes it increasingly easy to use cashless payment platforms like PayPal. Currently, a payment platform that has always been hidden as I would put it has emerged. It's called cryptocurrency.
If you're reading this, then I guess you've heard about Bitcoin which is the first cryptocurrency to hit the market rock solid. It would interest you to know that there are thousands of varieties of cryptocurrencies and many others are introduced daily.
The concept of digital currency still remains a mystery to so many people because it has not been fully understood. Society is still skeptical about the nature of this value of exchange and that is the reason for this post.
Questions like "what are cryptocurrencies like Bitcoin Cash?", "is it safe?", "how do I get aboard?" will be answered here to help those who are yet to understand the concept. Let's call it Cyptocurrency 201 because that's basically what it is.
What is Cyptocurrency
Cryptocurrency is simply a completely virtual method of transaction. It is a process of transferring funds from one person or group to another digitally. Its supply is not determined by banks and it runs in a completely decentralized system. It is not usually accepted for payment of commodities like gold. So, while most payments around us are done using physical cash, cryptocurrencies are payments made and stored in a database system representing recorded transactions. When you make this kind of transaction, it is recorded in a general database management system and then stored in a digital wallet. Its nomenclature crypto is derived from the fact that it is highly coded and encrypted when funds are transferred to the database systems or digitally wallets. What this means is that security is guaranteed. Let's look at bitcoins as the number one of cyptocurrencies.
Bitcoin Cash
Bitcoin cash is my favorite, but one can't talk about cryptocurrency without referring to the first and most popular - Bitcoin.
Bitcoin (BTC) is a digital cash same as Bitcoin Cash (BCH). BCH is a Bitcoin spin-off, an alternative version that is similar enough but has its own independent blockchain and plays by its own rules.
Though BTC remains bitcoin remains the most popular cryptocurrency in the world as well as the largest by market cap, it is limited by transaction processing time and cost, and has also lost its initial vision of a peer-to-peer digital cash system. Bitcoin cash stepped in as a solution to the future of the crypto and its effective scalability.
While BTC blocks are limited to 1MB, BCH is up to 32MB. The Bitcoin Cash network is thus able to process transactions more quickly than the BTC network.
Bitcoin cash is virtual cash. You can use it in the exchange of goods and services in places where it is accepted but not many have yet welcomed it as a medium of exchange.
Many, however, have started buying into it. Bitcoin cash we see in pictures shows its beauty but it's useless without the encryptions embedded inside them.
How does bitcoin cash work?
At its core, Bitcoin Cash is a system file that is kept in an app called a digital wallet stored in your phones. From this app, you can send BCH to someone or someone can send it to you. The transactions are exchanged, created, and stored electronically in the blockchain. A blockchain more like a public data file is a technique used to control the creation of monetary units and to verify the transfer of assets.
How a blockchain works
Someone request transaction
The request transaction is broadcast to a P2P network consisting of computers
The transaction is verified
Once it is verified, the transaction is combined with other transactions to create a new block of data for the ledger.
The new block is then added to the existing blockchain in a way that is permanent and unattainable.
The transaction is then complete.
Why is bitcoin Cash valuable?
Mining is the major process through which bitcoin cash is purchased. The same way mining is for BCH is the same way digging is for gold. The mining is done through a series of competition among miners who try to solve a puzzle that is usually mathematical to collect bitcoin cash. It gets tougher and tougher as the competition progresses and the winning rate decreases over time.
Bitcoin cash is still very cheap relative to BTC, but it will become increasingly "expensive". This is because as this commodity increases in value, people begin to "keep" or HODL it. As bitcoin cash becomes rare to find, the price increases in value.
How secure is it?
The bitcoin cash network is underpinned by blockchain technology which makes it very difficult to hack because of the way it is encrypted. However, I will like to say that this doesn't make it entirely safe or unhackable. That is to say that the risks are low, but not nil. There is always a risk of coins being stolen from a wallet in digital currency exchange.
Bitcoin cash is stored in wallets and can be traded through digital currency exchanges like Binance. So, hackers can gain access to other peoples’ wallets and make away with their BCH. Though a 2FA identification process is commonly used as an additional security measure. So, all Bitcoin cash investors are advised to take proper precautions to protect their coins. They are safer in non-custodial wallets like the Bitcoin.com wallet than in wallets at crypto exchanges.
How to invest in Bitcoin Cash
#1. Invest what you can afford
Financial experts always advise investors to "invest an amount they can afford to loss". Bitcoin Cash has great future returns, yet I would advise you to invest wisely.
#2. Set your heart for the ups and downs
A lot of investors get disappointed when they experience the upward and downward turn out of their money in the market. Note that this is perfectly normal and as such should be expected.
#3. Decide on how to own it
If you want to own bitcoin cash or any other crypto and you are not interested in mining then you can buy from someone who already owns it. But I'll suggest you gather as much information as you can from previous investors and get to know the scope. You can buy as little as $20 worth of bitcoin cash, make out a lot of time for it and get comfortable as you watch your cash grow.
#4. Storage
Cryptocurrencies are usually stored in an app called "wallet". There are various wallets for digital currencies. Each wallet has its own conditions and specifications.
The big picture?
Bitcoin cash is worth billions of dollars.
I believe that cryptocurrencies like bitcoin cash will be used to provide global solutions. Two of the most powerful solutions will be
A solution to the payment of huge money transfers for remittance.
It will introduce new ways of investment. These are majorly investments without brokers
In all, I believe it's a good plug...
Resource:
Lead image: Changelly
bch to the moon!