Bitcoin Cash (BCC) is a cryptocurrency that offers scalability, flexibility, and lower fees compared to Bitcoin, its parent cryptocurrency.
Due to its similarities with Bitcoin and its improved transaction rate, Bitcoin Cash has been embraced by cryptocurrency enthusiasts as a reliable alternative to Bitcoin. Many vendors and business that accept Bitcoin have also begun accepting Bitcoin Cash, spurred by its faster transaction speeds and lower fees. (3)
Bitcoin Cash is an ideal cryptocurrency for users who value speed and efficiency above all else.
Bitcoin Cash was established on August 1, 2017 as the result of a hard fork in Bitcoin’s blockchain.
For years, Bitcoin users were divided on the issue of Bitcoin’s scalability and how to make the cryptocurrency accessible to more users.
Bitcoin’s block size limit, at only 1 MB per block, capped the number of transactions per day at 250,000. This design was implemented by Bitcoin’s developers at the beginning of its development with the intent of reducing spam transactions. (4) (5)
This resulted in increasingly long waits for transactions to complete, as more people and businesses began using Bitcoin. The block size limit has also led to a steep increase in the fees that people pay to speed up their transactions. (7) (8)
These problems lead to many vendors and users abandoning Bitcoin and moving to other cryptocurrencies, with Bitcoin’s share of the cryptocurrency market falling from 95 percent to 40 percent. (9)
Many Bitcoin enthusiasts have long advocated that the block size limit be increased, which would allow for more transactions per day and thus faster transactions overall. Supporters of a block size limit increase argued that it would increase Bitcoin’s appeal and make it possible for more businesses and consumers to start using the currency. (10)
However, due to the technical complexity that increasing the block size limit would entail, the change was never implemented, and the Bitcoin community was torn over how to proceed.
Opponents of a block size limit increase argued that increasing the block size limit would hurt miners and independent mining pools, centralizing power in the hands of the largest mining pools, which would go against the spirit of Bitcoin. Additionally, many opponents of the block size increase also argued that Bitcoin was not intended to be a popular currency and should remain a small, underground commodity. (11)
Ultimately, on August 1, 2017, the problem was solved when the ViaBTC Bitcoin mining pool produced a 1.9 MB BCC block that was not compatible on Bitcoin’s network, creating a hard fork that birthed Bitcoin Cash. (12)
Bitcoin Cash features a block size limit of 8 MB, which allows for two million transactions per day, meaning that transactions are much faster than on Bitcoin and fees are also much lower. Bitcoin Cash also features improved protections against replay attacks, a common problem when cryptocurrencies go through a hard fork. (13) (14)
Additionally, unlike Bitcoin, Bitcoin Cash is fully decentralized, with multiple independent teams working to develop and enhance it in the future. (15)
Many businesses and vendors who previously used Bitcoin have now begun using Bitcoin Cash as well, making it one of the most popular cryptocurrencies currently on the market, though it has not yet caught up to Bitcoin’s visibility or popularity. Anyone who owned Bitcoin at the time of the hard fork on August 1, 2017 automatically became owners of Bitcoin Cash as well. (16) (17)
Some Bitcoin purists are opposed to Bitcoin Cash and have begun referring to it as “Bcash” in an attempt to delegitimize it. (18)
Mining Bitcoin Cash is not as popular as mining Bitcoin due to the former’s relative newness.
Despite this, many Bitcoin miners have switched to mining Bitcoin Cash because of its rising popularity and the likelihood that it will become more profitable in the future. The larger block size limit is a major selling point for miners due to the fact that it allows them to earn more transaction fees more quickly compared to Bitcoin. (19) (20)
However, due to the fact that Bitcoin Cash is a fork of Bitcoin, mining it carries many of the same problems that Bitcoin mining does. Mining Bitcoin has increasingly become an expensive and arduous endeavor due to the blockchain’s size and complexity, which precludes people from mining it with CPUs or GPUs, requiring miners to purchase dedicated rigs. (21)
However, because Bitcoin and Bitcoin Cash use much of the same fundamental technology, mining rigs designed for the former are also compatible with the latter. (22)
There are many quality Bitcoin Cash-compatible mining rigs available for a variety of prices, designed for everyone from hobbyists to dedicated miners. For example, Bitmain offers a line of inexpensive mining rigs priced that can reliably mine Bitcoin and Bitcoin Cash. (23)
Keep in mind that mining Bitcoin Cash, like Bitcoin, consumes a lot of electricity, and as the blockchain continues to grow in size and complexity, miners will need more advanced equipment (and more rigs) in order to continue turning a profit on it. (24)
Despite this, mining Bitcoin Cash can be a profitable enterprise, and is likely to gain in popularity as the currency itself becomes more widespread.
Bitcoin Cash is a cryptocurrency ideal for users who are looking for speed, low costs, and reliability.
Its greater transaction speed compared to Bitcoin has made it a viable alternative for vendors and businesses who want to increase their profits.
Additionally, Bitcoin Cash’s lower transaction fees also make using the currency less expensive, making it more accessible to lower-income users.
Bitcoin Cash’s growing popularity among vendors who already use Bitcoin have made it a good cryptocurrency for shopping and other basic business transactions.
Miners will also appreciate Bitcoin Cash’s profit potential, and the fact that Bitcoin Cash is compatible with preexisting Bitcoin mining rigs makes it all the easier to start profiting from mining it.
Ultimately, Bitcoin Cash is a reliable cryptocurrency, one that is certain to grow in popularity and value in the future due to its improvements over Bitcoin.