What is the difference between Bitcoin and BCH ?
What is Bitcoin?
Bitcoin is a cryptocurrency that was initially issued in the year 2009 by "Satoshi Nakamoto", which is a pseudonym for one or a group of individuals. This was driven by dissatisfaction with the current fiat currency system and its role in the global economy, as well as the perceived strengthening of geopolitical power structures.
While there are a number of differences between cryptocurrencies, the main difference between Bitcoin and other cryptocurrencies such as Litecoin and Ether is that they have gained more stability. Bitcoin was the first true fiat currency to see widespread adoption, and withdrawals have accelerated as companies start accepting payments in Bitcoin.
What is Bitcoin Cash?
Bitcoin Cash was found on August 1, 2017, making it still a relatively new currency. While new cryptocurrencies appear in every period and period, some of them are significantly distinct from the Bitcoin currency, and others are copies to some extent, and the critical difference in Bitcoin Cash is that its origins come from the original Bitcoin currency.
On August 1, 2017, the Bitcoin Blockchain split into two chains via a "Hard Fork" process - Bitcoin and Bitcoin Cash. For those unfamiliar with the term, before BlockChain split by Hard Fork, Bitcoin and Bitcoin Cash had the exact same ledger history. From a crossroads onwards, the ledgers have become distinct, which means that there are two distinct cryptocurrencies Bitcoin Cash is the currency derived from this process.
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How it arose:
Bitcoin's blockchain technology is based on data 'blocks'. As the adoption of Bitcoin increases, and more transactions are made, these Bitcoin blocks fill in faster. Transaction speeds slowed down when they needed new "blocks" to be confirmed and verified, which could not be created quickly enough by mining. Again, without going into technical details, this became a scalability issue.
The Bitcoin block size in BlockChain had to be increased, which necessitated the software update and the "fork". There are some technical differences between Bitcoin and Bitcoin Cash, such as that Bitcoin Cash is of smaller size. From a trader's perspective, the difference is that Bitcoin and Bitcoin Cash are now separate cryptocurrencies, and these derivatives are now separate financial instruments - BTC (Bitcoin) and BCH (Bitcoin Cash).
Reasons for trading Bitcoin Cash?
The main attraction of cryptocurrencies as tradable derivatives is their relative volatility compared to more mature fiat currencies. They are like emerging market currencies that are moving very quickly, with increasing demand for their bias around future adoption paths. As a newer cryptocurrency, Bitcoin Cash fluctuations are expected to be more pronounced compared to Bitcoin and other widely supported cryptocurrencies such as Ether, LiteCoin and Ripple.
These volatility is attractive to high risk traders. Trading Bitcoin Cash and other alternative currencies may provide opportunities for making a return on your investment, however, it must always be remembered that high volatility also increases the risk of loss. Take advantage of Admiral Markets' volatility protection settings and try your trades on a free demo trading account, using virtual money, before trading Bitcoin Cash CFDs for real money.
Another feature of cryptocurrencies that attracts traders is their low association with traditional financial markets and other asset classes, not just fiat currencies. Because cryptocurrencies are not part of the fiat system, their value is not affected by trends in fiat currencies. And because they are not linked to any government or central bank, they are not affected by geopolitical factors in the same way that they affect all other assets, and the financial instruments based on them.
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What affects the price of Bitcoin Cash?
Bitcoin Cash Prices If the value of Bitcoin Cash - as well as other cryptocurrencies - is not affected by central bank monetary policy and geopolitical events like other assets, then what are the main actors? Trading Bitcoin Cash requires that traders have an understanding of what affects the price. It is currently, despite being a relatively newer cryptocurrency, it is the second most valuable in the world (by market value), behind only Bitcoin. So what are the main drivers?
Exchanges Accepting Bitcoin Cash BHC - When Bitcoin Cash started, exchanges and wallets were reluctant to receive a new cryptocurrency. However, more and more people are now accepting it, which increases its value as it becomes easier to store and transport. This is a major factor in how successful Bitcoin Cash will gain adoption and stability in the future. Traders should keep an eye on new exchanges and portfolios, especially the larger ones, when they announce that they will start accepting Bitcoin Cash.
Pace of Mining BCH is very attractive to miners because its smaller size compared to the original Bitcoin coin, means that it is currently easier to mine and mine, and thus it is more profitable for them. Smaller block size also means that more transactions and miners are making money on transactions involving their metallic blocks, which increases their popularity.
The smaller block size of BCH draws the attention of miners, which will have an impact on the future price of Bitcoin Cash, as well as on other cryptocurrencies. If the "Hard Fork" occurrence of Bitcoin and BCH with our news of the scalability issue of blockchain technology, time will also tell us.
It is not impossible for BCH to eventually outperform BTC and become the primary Bitcoin chain.