Bitcoin Cash FAQ

Bitcoin Cash is a system that allows people to send each other money electronically. It is meant to become global currency, with quick payments, low fees, and the ability to transactions large amounts of data at once.

Bitcoin Cash is a decentralized cryptocurrency that does not require any trusted third parties, such as banks or payment processors. Similarly to how traditional fiat money works, Bitcoin Cash transactions cannot be censored by governments or other centralized corporations. Plus, funds also cannot stored in a way where they can be seized or frozen — because financial third parties have no control over the Bitcoin Cash network.

Bitcoin Cash (BCH) is a cryptocurrency that was created when developers forked the code from Bitcoin (BTC). The BCH network is much faster and cheaper. In 2017, there was a hard fork in blockchain that resulted in two assets – BTC / BCH. Another hard fork took place in 2018 which divided Bitcoin Cash into two parts: Bitcoin ABC and Bitcoin SV.

The key distinction between BCH and its original remains the block size. Blocks in the BCH blockchain can be larger, meaning more transactions can processed simultaneously, which then prevents higher fees. However, because potential block size is now bigger, storage & audit become costlier and users may have difficulty downloading an entire copy of the blockchain.

Both Bitcoin Cash and Bitcoin have a 21 million coin limit, use Proof-of-Work for transaction verification, and nodes to confirm transactions. From this perspective, Bitcoin Cash can be seen as a tool for hedging risk because investing in it may save traders some money.

Some advantages of Bitcoin Cash (BCH) include the faster processing due to the larger block size and cheaper transaction fees, making BCH more practical for small everyday transactions. In addition, Bitcoin Cash facilitates smart contracts and ecosystem apps like cashShuffle, a coin mixing protocol, and CashFusion, a privacy-enhancing solution for enhancing security on the Bitcoin Cash network. CashFusion comes with advantages and disadvantages: it makes it close to impossible to see where a user’s assets come from, though users should keep in mind that each time they mix their funds, there is a commission fee. This might get costly if done too often.

Low transaction fees averaging around $0.01 and instant settlements make Bitcoin Cash ideal for P2P payments, international trade, everyday transactions, and microtransactions. Furthermore, by offering an alternative to standard forms of money (that are often subject to confiscation or censorship), Bitcoin Cash allows users more economic freedom.

Bitcoin Cash is a decentralized network where users can influence the development of the protocol. The maximum supply of BCH is capped at 21 million coins, which is unlikely to change.

Therefore, the key features of Bitcoin Cash include the following:

Transactions are recorded on the blockchain, the ledger is updated at regular intervals, which allows users to track the history of ownership and eliminate fraud threats promptly.

Bitcoin Cash is an open network that can be used by anyone for free and uncensored, identities are not attached to transactions.

Nodes that follow a set of rules (aka protocol) are responsible for the longevity of stored information. The protocol itself can be upgraded with the help of ecosystem participants, but that requires a high degree of consensus among them.

All transactions that have ever been recorded on the blockchain are not subject to change.

The Proof-of-Work (PoW) mechanism contributes to network security.

Bitcoin Cash is a hard asset with the maximum supply of 21 million $BCH.

Bitcoin Cash guarantees its users fast, affordable, and most importantly – reliable transactions without being tied to any location, which makes it a worthy replacement for existing payment networks.

Bitcoin Cash is a unique cryptocurrency in that it has the properties of both gold and cash. With only 21 million Bitcoins available, Bitcoin Cash is scarce like gold, but can be easily spent like cash. Transactions are fast and cheap, with transaction fees typically less than one tenth of a penny. Anybody can accept Bitcoin Cash payments using just a smartphone or computer.

Bitcoin Cash does not only have the standard peer-to-peer payment usage between individuals. It can also be used for in-store and online purchases from participating merchants, microtransactions such as tipping content creators, or rewarding app users. The fees are very low which allows for new economies to form, In addition, Bitcoin Cash reduces the fees and settlement times generally associated with remittances and cross-border trade. Some other possible use cases include tokens, simplified smart contracts, or private payments using tools like CashShuffle or CashFusion.

In 2017, the Bitcoin project encountered an issue with scalability. As a result, the community split into two groups with different solutions to the problem. This led to a hard fork and the creation of Bitcoin Cash – which supporters maintain is the legitimate continuation of Satoshi Nakamoto’s original vision for Bitcoin. Those who owned Bitcoins at block 478,558 automatically became owners of an equal amount of Bitcoin Cash.

Bitcoin Cash (BCH), in contrast to Bitcoin (BTC), was designed with the intention of being able to handle a high volume of transactions from all over the world. Right when BCH split from BTC, its block size was increased from 1MB to 8MB. A larger block size allows for more transactions per second(TPS) while still keeping fees low; thus solving user issues like payment delays and expensive transaction fees that were experienced on the BTC network.

Bitcoin Cash has a block size of 32MB while Bitcoin only as 1MB, as of October 2021.

Mining is how new Bitcoin Cash transactions are confirmed and new blocks are added to the Bitcoin Cash blockchain. Miners use computing power and electricity to solve complex puzzles. By doing so, they can produce new blocks of transactions. If one of their blocks is accepted by the network, they earn a block reward in newly-issued Bitcoin Cash.

The mining industry is highly competitive. As the price of Bitcoin Cash surged, more miners were motivated to bring in Hash rate in an attempt to produce blocks that would be accepted by the Bitcoin network. This action not only increased security on the network but also spread out the hashrate among competing miners.

By running specialized hardware called mining equipment, rented or bought, anyone can mine Bitcoin Cash. Miners also need to run full node software to build blocks and connect with the rest of the Bitcoin Cash network. Mining pooling has become popular among miners where they group their hash rates together and share in block rewards earned proportionally.