Don’t know anything about Bitcoin Cash? Here’s a rough guide to get you up to speed with this exciting coin.
1) Bitcoin vs. Bitcoin Cash
What’s with all the fighting? In 2017, two factions of bitcoin emerged following a hard fork in its underlying code. Those who strongly favored faster transaction speeds created Bitcoin Cash, while those who didn’t want to change established their own version of bitcoin: Bitcoin Gold. We cover both versions here. The main difference between each currency is how they process transactions and store data on their networks, as well as how you can use them. But there are also fundamental differences beyond that. Let’s take a look at both currencies and examine what makes them unique from one another. Then we’ll talk about some ways investors could benefit from knowing these differences.
2) How Does Bitcoin Cash Work?
Similar to Bitcoin, Bitcoin Cash is a digital currency that can be sent through any computer or smartphone without an intermediate financial institution. The cryptocurrency was released in August 2017 as a result of a hard fork from Bitcoin, in which a minority group of developers decided to create an alternative protocol for trading bitcoin transactions. In December 2017, it became clear that they would not succeed in their attempts, and most businesses and users migrated back to Bitcoin. Only exchanges and miners—those who process transactions—continue to use Bitcoin Cash. All other users returned to using Bitcoin; however, some new investment funds were created, seemingly raising new money on behalf of this dead blockchain. Cryptocurrency investors should recognize that these funds are under new management and may therefore constitute a new investment opportunity. (Source: Investopedia) (contributor: Wikipedia)
3) What Is Bitcoin Cash Used For?
A lot of people wonder what exactly is Bitcoin Cash used for? After all, once you have purchased it from an exchange or a trading partner, what do you do with it? Where can you spend it? Where can you use it to buy goods and services? Well, let’s find out. Frankly, there aren't to many uses in the non-crypto world for Bitcoin Cash. It is still a store of value (of varying effectiveness, like all not stablecoins) and in theory can be used as a medium of exchange but is yet to see that in reality. As it isn't the main cryptocurrency, stores are less likely to accept it as their first cryptocurrency. As it does have faster transaction speed, there is the chance that in a world of crypto, Bitcoin Cash may come to overtake Bitcoin. What a world that would be!