Bitcoin Cash what is it and how to buy?

Bitcoin Cash is a cryptocurrency that was born in the past  August 1, 2017 from Bitcoin to try to solve the scalability problems of the original Bitcoin. It is currently one of the most popular currencies and with a very high market value that places it in position 3 of the total crypto ranking, only behind the original Bitcoin and Ethereum. Despite its short life, Bitcoin Cash has a strong community behind it and there are some people who claim that in the future it will be the most important Bitcoin, relegating even the original Bitcoin to a second place due to its problems. Therefore, pTo understand what Bitcoin Cash is, we must first understand what is and where does bitcoin come from.

Origin of Bitcoin

Bitcoin was created anonymously by a person or group of people under the alias of "Satoshi Nakamoto". THEThe intention of this person or group of people was to create a decentralized method of sending and receiving money using a technology known as blockchain or chain of blocks. The creator of Bitcoin "Satoshi Nakamoto" implemented a series of rules in Bitcoin, one of them is that there could never be more than 21 Millions Of units while another measure was that to create and generate those Bitcoin the only way was to use their FOSS to help resolve transactions that were generated securely. When a user sends Bitcoin to another, this has to pay a commission (fee) to contribute to the network; the network would be the computers that run this specific software so that the transaction is generated correctly. These computers and / or machines are called "Miners" and anyone in the world with a computer and internet connection could be a miner.

Thereby the use of central bodies would not be necessary, government or banks to trust since you yourself would be responsible and the sole owner of your Bitcoins. Well, this technology created in 2008 it had certain limitations; Due to these limitations, many groups of programmers appeared with the intention of improving and scaling these limitations of Bitcoin.

Other large groups of people were also created who dedicated themselves to installing and setting up large Bitcoin mining farms. This will help the new ones to understand below what it is and how Bitcoin Cash was created. And then later we will also see the steps to follow to be able to buy Bitcoin Cash safely.

We have said that Bitcoin was created anonymously and both the project and the software are public; this means that anyone can modify it, improve it and add new features. But for these improvements to be implemented they have to be accepted by the vast majority of "miners" who have to update and download this improvement, which in the community is called "consensus" And it is another of the fundamental characteristics of blockchain technology.

When a user executes a transaction this is stored in a blockEach block has a predetermined size of 1MB and is capable of storing a certain number of transactions, these blocks are automatically generated every X time, rather than a predefined time.

One of the main problems of Bitcoin arises when it becomes popular and the number of transactions increases considerably. Then certain conflicts arise in the Bitcoin community about how to deal with this problem. The consequences of this problem affect transactions, as there are too many, they go into a waiting state where they accumulate based on the commission that the user has paid when making it. When this happens, the commissions increase (by increasing the network cost) and the time it takes to confirm a transaction also increases considerably while transactions with higher commissions will have preference over the others.

Here arises the main of the problems where the Bitcoin community is divided and a fight of "interests" begins between the miners and the Bitcoin developers.

Understood this we can explain what which is a Hard Forks. A Hard Fork is a division of the main blockchain that would be Bitcoin. This occurs when the improvement proposals are not accepted and the miners that support the Bitcoin network are divided. Only then can you create a second digital currency from the original chain that would be Bitcoin, and this is how "Bitcoin Cash" appeared. To understand this in a more visual way, you should see the following image:

This could be good or bad, depending on how you look at it. When a Hard Fork actually what happens must be done is a cloning. Thus, the miners that support the new chain clone the data of the original chain to the new updated chain with the improvements applied, with which any user who had a Bitcoin in their purse (wallet) will obtain a automatic and free a Bitcoin Cash, that is right now after the hard fork you will have a bitcoin and a bitcoin cash.

History of bitcoin cash

The history of Bitcoin Cash It is very short since the 1 August 2017 derived from the scalability problems and the non-understanding of the community mentioned above, although if we take into account the years that the Bitcoin community has been debating these issues, the history of Bitcoin Cash goes back much further.

How to buy bitcoin cash

To acquire Bitcoin Cash we can do it in several ways, the easiest would be register and open an account in one of the main exchanges. For example we can use any of the following:

• BitMex
• hitbtc. com
• Creak

Once we create the account we will have to verify it by providing an identity document or passport and proof of address and bank receipt.

After verifying our account we must make a bank transfer from our account to the bank indicate with the unique identifier that you provide in your exchange account.

When we already have the money in our account we only owe make the purchase from your web platform and exchange our euros for Bitcoin Cash and we will have our investment made.

Advantages of bitcoin cash

The main advantages of Bitcoin Cash are quite a lot compared to original Bitcoin, faster transactions with much lower cost and scalable.

This they have achieved increasing the size of each block from 1MB to 8MB scalable up to 32MB without any additional fork allowing between 23 and 92 transactions per second compared to 3-7 tx / s (transactions per second) that original Bitcoin allows.

Bitcoin cash problems

One of the main problems of Bitcoin Cash is 8MB block size and because? Well, because that implies a significant investment in storage machinery for the miners that contribute to the network, which could put them back, who could choose to support the original 1MB network in which it is not necessary to make a new investment.

The other problem is that users who use Bitcoin distrust the degree of acceptance that may have Bitcoin Cash due to the high cost that it would have to maintain its network, since this could make the Bitcoin Cash network remain only in the hands of a few powerful with sufficient capital to face it and in this way be controlled by a small group of people who would have majority control of the network, while the original Bitcoin network is more distributed and consequently more difficult to control and centralize.

bitcoin cash vs bitcoin

The show is served, Bitcoin Cash managed to put itself for a moment in second place in market capitalization behind Bitcoin. Right now, as of the date of this article, it is in third position and the situation is as follows:

The combat continues and will last for many rounds since the Bitcoin community is very large and as new users get to know the blockchain and become interested in cryptocurrencies, the first thing they do is invest in Bitcoin instead of Bitcoin Cash, because it is the first and the queen of all. Inside the original Bitcoin captain, Bitcoin Cash can be a worthy competitor Due to the large investors behind it and its advantageous characteristics with faster and cheaper transactions, but this is a problem that other very important cryptocurrencies have already solved long before, such as Ethereum, which occupies the second place in market capitalization, You can see it in the previous image. With which we should ask ourselves why would I or any other user invest or buy Bitcoin Cash when Ethereum is faster and cheaper? Due to this, many people decide to invest in Bitcoin for being the queen as a store of value and to use other digital currencies such as Ethereum to carry out transactions and shipments.

Bitcoin cash quote

At its launch, Bitcoin Cash began trading above $ 500, subsequently oscillating between a minimum of $ 200 and a maximum of $ 2.500, at the date of the creation of this article Bitcoin Cash is trading at a price of $ 1.248. If you want to see the price in real time you just have to enter this link.

Conclusions

In such a volatile, young and unpredictable and changing market we do not know for sure where the market will go, but for my part I think that anything can happen, so the best thing that I consider on a personal level will be to bet on both to and see as events unfold.