The Bitcoin cash, also called Bcash is an altcoin of the original Bitcoin. From 2010 to 2017, there were different issues rattling the Bitcoin network, of which rising fees and increase of block size were two main issues that divided the maximalists and the minority group on the network. The fork was created by a minority group led by Haipo Yang of ViaBTC. At present, this peer-to-peer electronic cash ranks at fourth position in the cryptocurrency market with a market capitalization of more than $6 billion. The main difference between the original Bitcoin and the Bitcoin Cash is that in the case of the latter, more transactions are processed each second. Users of BCH are empowered with low transaction fees. The ticker symbol of Bitcoin Cash is BCH. With a supply limit of 21, 000, 000 BCH, the block time stands at 10 minutes. In 2018, BCH further split into Bitcoin Cash and Bitcoin SV.
Cover Bitcoin Cash common issue
1. Last year in 2018, the Bitcoin Cash network split into two when the network tried upgrading to a new software program. Users also reported that the mempool-acceptance rules had a bug after the hard fork update. However, the bug was immediately fixed and new codes were developed. Some exchanges announced that they were pausing all forms of transactions in the interim till the bug was fixed and things came back to normalcy.
2. This year in May 2019, another issue came to the forefront. Some users pointed out that a single address on the network had been conducting 50% of all the transactions in the previous month. It was being viewed that this entity was doing so to make the BCH network look active and hence was piling on the transaction numbers.
3. After BCH forked from the original Bitcoin, it did faces dwarfing issues against the market cap of the standard BTC. There were major adoption issues with the new digital currency thereby slowing the growth of the Bitcoin cash network.
4. Many Bitcoin standard loyalists and supporters believe that BCH is a cheap offshoot of the original Bitcoin.
5. Some users on the Bitcoin network and the BCH network have also voiced that BCH is practising malicious propaganda to manipulate users and traders in the market by constantly attacking Bitcoin and the developers of the standard BTC. Some users believe that BCH is doing this knowingly to spread hatred against BTC in order to build its own fan and user base.
Pros and Cons of Bitcoin Cash
Some of the pros of the BCH are:-
1. It is a form of peer-to-peer electronic cash that has low transaction fees. The commission rate is in the range of $0.05 – $0.010 as compared to that of BTC that is between $8 and $15.
2. It is invariably faster than the standard BTC – in 2017, transactions of BTC could take upto four days to complete. Traders needed to pay a transaction fee of $28 to speed up the process. The BCH, on the other hand, initially had a block size of 8 megabytes against Bitcoin’s 1 Megabyte. Later in 2018, the block size was increased to 32 Megabytes. The network has also been programmed to use zero-conf which means that cash transactions are confirmed almost instantly.
3. This is a reliable network that has no congestion related issues.
4. User-friendly features makes it simple to use.
5. Uses robust blockchain algorithms making the network highly secure.
6. Another big plus point of this crypto coin is that it is listed on all major cryptocurrency exchanges globally.
Disadvantages of Bitcoin Cash
1. Investors have been slow in adopting this currency because the faith has been low and the lack of definitive distinction between the BCH and the BTC is believed to the main reason behind this. Most investors in the crypto world do not consider the coin to be a long-term asset and view it more as a speculative tool.
2. The slow adoption rate will result in the crypto coin stagnating after a certain point in time. This is because when cryptocurrencies are adopted faster, the growth is accordingly fast while the vice versa is also true.
3. The automatic adjustment of the BCH network’s algorithms complexity is also a vulnerability that has seen investors investing in BCH during recessions and then turning back to BTC when things improved.
How to Sell or Buy Bitcoin Cash?
Bitcoin cash can be bought from an online exchange. One needs to sign up at a Bitcoin exchange and then when the account is verified and confirmed, the user needs to deposit funds, including fiat currency into the account and then convert it into BCH. Exchanges that trade in fiat currencies and cryptocurrencies permit users to send and receive BCH via bank transfers. Bitcoin cash can also be purchased from a BCH-enabled ATM and in-person from BCH sellers. Once users and investors purchase Bitcoin Cash, they are requested to transfer the crypto coins into their own wallets rather than leaving the coins on the exchange, for safety and security reasons. Also, it is essential that users have the wallets backed up safely so that there are no security threats.
Users can sell BCH for cash or fiat currencies. In order to do so, users need to link their bank account with their crypto exchange account and also undergo a time-consuming identity verification process. This is because exchanges generally permit withdrawals to a linked account only. Using bank transfer or SWIFT transfer users can withdraw money to their bank account.
Users can also sell their BCH to other users on the network through peer-to-peer transactions. In order to do so, users would need to either post a sell offer or reply to a buy offer on the network. These transactions are mostly instant provided the seller and the buyer have enough funds in their accounts. Sellers and buyers can also speak or meet face-to-face for an offline transaction.
Is Bitcoin Cash safe for investment? /or legally approved
Users and traders need to remember that Bitcoin cash transactions are irreversible. Once the amount is sent or received there is no going back. Hence, transaction details need to be thoroughly verified before giving the green signal. Also, it is highly recommended that users transfer the funds to their own hardware wallets and not keep on the exchange. This is because the crypto market has enough instances of exchanges being hacked illegally or exchanges shutting down without making payments. Also with exchange wallets, users have hardly any control over their funds.
Since this is one cryptocurrency where peer-to-peer buying and selling can happen offline, it is important to have meetings in public places. Additionally, if some want to Buy Ripple Coin or Sell Ripple Coin, then sellers and buyers should ensure that they have live information on the exchange rates and also sign off after the transaction has taken place.
Dealing in Bitcoin cash is subject to volatile market conditions. It could be highly speculative and unpredictable in nature. Though this particular cryptocurrency is one of the top ones in terms of its market cap and value, it is advisable that users research enough before deciding and should be ready to risk it all. Also, they should check if dealing in BCH is legal in their country or not.