If you are reading this, you might know cryptocurrencies like Bitcoin, Litcoin, etc. For the starters Bitcoin Cash (BCH) is a cryptocurrency having been split from the fork of the original Bitcoin itself. At the time of writing, the BCH price in India was Rs. 28,866.88.
BCH claims to maintain the original vision of Satoshi Nakamoto, inventor of Bitcoin that is a peer to peer transaction facility with an autonomous ledger keeping the chain of transaction known as Blockchain.
What is Bitcoin Cash?
In August 2017, Bitcoin Cash was created from a fork of Bitcoin. It increases the size of blocks, allowing more transactions to be processed. In 2018, BCH underwent another hard fork into Bitcoin Cash ABC and Bitcoin Cash SV.
The difference between BTC and BCH is theoretical than technical. As Bitcoin was originally proposed to be a peer to peer transaction as a payments system, it became an investment model that was having scalability issues. Bitcoin Cash proposes to remedy the situation by increasing the size of blocks in between 8 MB and 32 MB. This enables the processing of more transactions per block. According to many analysts, the change in Bitcoin’s block size will help it to compete as a medium of transactions with multinational credit card processing organizations.
BCH, unlike BTC, does not use Segregated Witness (SegWit), another solution proposed to accommodate more transactions per block. It is a solution to accommodate more transactions per block. It retains only information relating to a transaction in a block.
Moreover, it uses a Proof of Work (PoW) consensus system to mine new coins. Its supply is capped at 21 million the same as BTC. BCH uses the same difficulty algorithm used by BTC namely Emergency Difficulty Adjustment (EDA). This adjusts difficulty every 2016 blocks or every two weeks.
Due to the surging of transactions using BTC, it caused the cases of unconfirmed transactions. There was the situation of the increased time taken to confirm transactions. This also caused a hike in fees for BTC transactions that were detrimental to the competition from credit card processing systems. In such troubled times, Bitcoin Cash debuted on cryptocurrency exchange platforms at an impressive price pegged at $900.
Future of Bitcoin Cash
Bitcoin Cash ABC, another fork of Bitcoin Cash, uses the original Bitcoin Cash client but has imbibed several changes such as Canonical Transaction Ordering Route (CTOR) that rearranges transaction in block specific order.
In the end, it has been a smiling story as more funds have flowed into the cryptocurrency ecosystem due to the forking and the number of coins available to investors has multiplied. Since launching, both cryptocurrencies have commanded respectable valuations at crypto exchanges.
There were several new promises from Bitcoin Cash but many have not been delivered till now. The size of the block is smaller in BCH that means the proposal that the transaction will take less time on Bitcoin Cash is yet to be tested technically. There is also rising competition in the cryptocurrency from competitors such as Litecoin and Dash that also aspire to be the cryptocurrencies of daily use.
While the split from BTC was high profile, Bitcoin Cash is still unknown outside the cryptocurrencies community. Similarly, going by the size of the blocks, Bitcoin still commands sizeable share as compared to other cryptocurrencies.
Concerns about Bitcoin Cash
Bitcoin Cash’s second hard fork on the blockchain also portrays the problems with managing its developer pool. That a major section of the developer pool thought that Bitcoin Cash is diluting the original vision of peer to peer payments transaction is worrying because it opens the door to more split in the future.
Furthermore, Smart contracts are an essential feature of all cryptocurrencies. While it remains to be seen whether Bitcoin Cash goes on to become a platform for incorporating smart contracts for transactions or simply for payment systems.
There is no substantial standing on the governance protocol from Bitcoin Cash unlike Dash and other cryptocurrencies. It has also become a centralized system in a way where the development team has more say in the future of Bitcoin Cash. Therefore, it is unclear with investors without substantial holdings of the cryptocurrency have voting rights or say in the cryptocurrency’s future direction.
Overall, in the context of a competitive market of cryptocurrencies only time will tell how well or worse the situation becomes for BCH. It has till now has maintained its respectable slot.
So, those who want to make a profit from it, it is the right time to invest in BCH to INR to get remarkable returns. Are you in a dilemma from where to buy Bitcoin Cash in India? Visit PCEX Member to have a great trading experience.