Bitcoin Cash is an electronic money used in P2P networks. Bitcoin Cash is completely decentralized, does not rely on Central Bank services and does not require trusted third parties. This is the exact definition of Bitcoin because Bitcoin Cash is a fork of Bitcoin obtained by splitting its blockchain into two different versions. Such as a split can happen with any blockchain, but this fork was made by a group of people who disagreed with how the Bitcoin blockchain should develop in the future.
Bitcoin Cash appeared due to the Bitcoin hard fork and the many aspects repeat the algorithm of this cryptocurrency. Many are provisioning the new Altcoin as a result of disagreements between developers and miners on the future development of Bitcoin.
On August 1st 2017, Bitcoin Cash was created as a result of the Bitcoin hard Fork. The history of Bitcoin and Bitcoin cash was identical before the hard work. Anyone who controlled the secret keys of a certain amount of their Bitcoins or kept them on an exchange that supports the new currency, automatically received the same amount of Bitcoin Cash.
Bitcoin Cash are focused of increasing the block size from 1 MB to 8 MB without the needs of SegWit - this allows BCH to have more transactions be done in the network and this leads to lower transaction fees.
Bitcoin Cash has not received unequivocal approval in the community and not all exchanges immediately supported it. Some believe that this crypto currency will help solve this scaling problem in general while others say that the hard fork creates unnecessary confusions and damages Bitcoin's reputation due to the division of the community.
From the technical point of view, the algorithm of BCH work are no different from the similar structure of the Bitcoin system. With the exception of the few innovations in signature hashing and projection against duplication of transaction blocks, the cryptocurrency has same structure.
As in Bitcoin system, other users are the guarantor - the legitimacy of the transaction. Copy of the blockchain is on the computer of every user registered in the Bitcoin Cash network. Thus, the transparency of transactions is achieved.
Proof-of-Work computing power is used to verify transfers between users and to confirm the legality of receiving coins. Users with large capacities or miners calculate the hash zone which contains data about the transactions and its travel along the blockchain.
For sending personal power, the miner receives a reward in the form of BCH. Due to the increased block size, more transactions can be accommodated in it than in the Bitcoin network. This ensures the stability of the system and high daily turnover rates. This completely eliminates the mempool of collection of transfers in a payment system that are still awaiting confirmation. At the same time, the block is not solved by the miner to slowly due to its size since the complexity of the calculations is adjusted every hour and the block is calculated in 9-10 minutes, as a result users get cheap transactions that take a few seconds to complete.
To rank transactions in the quick that principle of fees is used, they're also received by miners as a reward. At the same time, the commissioner gets an average rate 0.0029 US dollars per transfer. Thus, a user can transfer a huge amount anywhere in the world by paying less than 1/3 of a cent for transfer. This is a serious competitor not only for the top cryptocurrencies, but also for the modern banking system.
Buying and selling your BCH is so easy. In order to place the purchase cryptocurrency somewhere, you need to open a wallet with Bitcoin address. The developers did not create their own wallet, but proposed to use the developments of Bitcoin core is the main storage ystem.
If you don't want to waste your energy and time on mining, you can buy Bitcoin Cash in some different ways;
Purchase from individuals at localbitcoincash.org
Using popular cryptocurrency exchanges
Buying BCH on exchanges
Each method has its own advantages and disadvantages. Though, buying from someone is not very recommendable for beginners. The scammers can trick you into transferring real money to them and then they will not transfer BCH to your address.
If you know how cryptocurrency wallets and transactions work, the first purchase method is the best choice. It will be more confidential and private.
The second option is the fastest and easiest way when buying coins online from exchangers. Please know that many exchanges are not responsible for digital currencies so it is worth taking seriously and the issue choosing a reliable partner.
Another safe way is to purchase cryptocurrency on exchanges. The Bitcoin Cash team advice purchasing BCH in Coinbase, Bittrex, Kraken and Bithumb.
Like Bitcoin, Bitcoin Cash is issued at 21 million total supply. Initially about 15 million BCH was created as a result of the fork and Bitcoin Cash completely copies the blockchain before forking.
Currently, production of the new BCH takes place through mining. Their reward for solving a block of transactions is 12.5 new BCH. The block rewards is decreasing in the same way as Bitcoin every four years thus by about 2035 the BCH emission will end.
Do not think that after eliminating their reward of solving the block, miners will lose interest in the cost of computing power. Commissions which are guaranteed to be charged for the first confirmation of the transfer will remain an important incentive and in the future due to the increasing adoption of BCH and an increase in computing power, the commissions in mining will bring more money than of the current mining.
Along with Bitcoin, BCH is called Digital Gold for a reason after the completion of the mission in 2035, given the high popularity of digital currencies, the price of BCH can skyrocket. In this, you will be out by the possibility of dividing up to 10 to -8 degrees from the whole limited resources are always expensive.
Just like all of Proof-of-Work cryptocurrencies, Bitcoin Cash also uses mining power for it to secure the network. While miners continues to mine cryptocurrency, miners generate new blocks and this confirm the current transactions - showing that the peer-to-peer network is very well and alive.
The more miners and capacities are involved in the process, the more profitable this system becomes. It more evenly distributes thae income from the new issue and decentralization increases. In this case, the absence of a single control center is in a bank is not a disadvantage but an advantage for the currency. Each participant in the transaction, each miner and developer by their existence maintains that operability of the project.
Another issue is pricing the value of BCH is determined by the combination of supply and demand for the digital currency in their respective markets. Demands is, this case, it is the number of people who are willing to use Bitcoin Cash as a type of payment. The difficulty of solving the block is corrected every hour therefore, even if 10 miners remain on the network, transactions will continue - this helps to understand that in terms of pricing their, consumed capacity does not play the most important role.