What is Bitcoin Cash?
Bitcoin Cash is a renowned cryptocurrency that can be used as money and payment without involving any central authority. It does not include any individual, entity, organization, or governmental body as a decisive authority. Although it shares various similarities with Bitcoin, multiple characteristics make Bitcoin Cash different than Bitcoin.
Bitcoin Cash uses blockchain as a public ledger to carry out transactions securely in its electronic cash system. The blockchain network functions as a database that saves data and information safely using encryption methods.
BCH offers a transparent medium to execute all transactions by eliminating the maximum chances of fraud. Unlike traditional payment methods such as Visa and Mastercard, Bitcoin Cash provides fast and reliable transactions through an efficient medium of exchange.
Who Founded Bitcoin Cash?
Bitcoin Cash was created to produce a secure medium that can carry out transactions faster along with minimum fees. In August 2017, a hard fork occurred due to the splitting of the blockchain in two. Haipo Yang of ViaBTC is an economic minority that produced a Bitcoin Cash fork with everlasting rule change against the Bitcoin network.
How does Bitcoin Cash Work
Bitcoin Cash and Bitcoin have one significant difference, which is the block size. As Bitcoin has a major scalability problem, Bitcoin Cash was designed to carry out 116 transactions per second on average. Thus, with the fast transaction speed in Bitcoin Cash, the block size also needs more processing power. So, if you want to go for a retail purchase such as coffee, quick transactions through platforms like Bitcoin Cash can be assistive.
In comparison, if you want to go for mass-scale purchases such as a car or house, you will need a slower transaction-rate cryptocurrency like Bitcoin. It indicates that both Bitcoin and Bitcoin Cash have different functionalities which can be used for various purposes. You can carefully use BTC (Bitcoin) or BCH (Bitcoin Cash) according to the nature of your tasks, such as buying a car or paying for restaurant dining.
How to Buy Bitcoin Cash
Do you want to know how to buy Bitcoin Cash? Here are the simple steps that you can follow to buy Bitcoin Cash using Binance:
Step 1: Create an Account
First, create your user account on Binance, which will act as a medium to buy crypto. You can either use the Binance app to register yourself. Or, you can use your email or mobile number to register through the official website of Binance. Moreover, make sure to have some cryptocurrency, such as USDT or BUSD, in your Binance wallet to proceed smoothly.
Step 2: Select Payment Method
Now, you have to decide how you are going to buy the BCH asset. For this, tap on the “Buy Crypto” link displayed in the top left corner of the Binance website. There are four ways through which you can buy: “Credit or Debit Card,” “Bank Deposit,” “Peer-to-Peer Service,” and “Third-party Payment.” Select your way of payment according to your suitability.
Step 3: Make Payment
If you have selected the Credit or Debit Card for payment in the Binance app, make sure to complete your identification process. Once done, tap “Buy Cash” and select “Credit/Debit Card.” Once done, choose your currency and the type of crypto you want to buy. Now insert the amount of your currency that you want to invest. Afterward, hit the “Continue” button. On the next window, enter all the details and required credentials of your card carefully.
Step 4: Confirm Order
Now give confirmation for your order at the current price. For this, you will only have 1 minute. Once a minute has passed, your purchased order will be calculated again according to the current market price.
Step 5: Save in the Wallet
Once you have purchased the BCH asset, you can save it in your personal crypto wallet. Or you can also use your Binance account to save the purchased crypto.
Bitcoin Cash Comparison
There are several other leading cryptocurrency projects operating in the market, putting in competition with BCH. Before investing in the project, it is best to have a detailed understanding of the projects and how they differ from each other.
Bitcoin Cash vs. Bitcoin
Bitcoin and Bitcoin Cash may sound similar, but they have various distinguishing characteristics. Bitcoin Cash was developed by Bitcoin miners to encounter the deficiencies of Bitcoin’s scalability. Bitcoin has a significant issue with the transaction time that was a major concern among Bitcoin miners. In contrast, Bitcoin Cash was created to provide faster transaction speed at low fees.
The reason for the faster transaction speed in Bitcoin Cash is its block size which is 32 MB. On the other hand, Bitcoin is restricted to only 1 MB blocks. Due to the large block size, Bitcoin Cash is able to process faster transactions per second on average.
However, there is a drawback that comes with the faster transaction speed of Bitcoin Cash which is security. The faster transaction speed can weaken the verification process, which can directly impact security. Thus, Bitcoin gets the advantage of offering secure transactions comparatively due to its slow speed.
Bitcoin Cash vs. Bitcoin SV
After the hard fork of Bitcoin to create Bitcoin Cash, there were still disagreements among the developers. There were some technical upgrades, such as plans, transaction procedures, and functionality of the smart contract related to Bitcoin Cash which did not get universal support.
Due to such disagreements, another hard fork was created, known as Bitcoin SV (Satoshi’s Vision). The major difference between Bitcoin Cash and Bitcoin SV was the block size. Bitcoin SV claimed that it would provide fast and cheaper transactions than any other electronic payment system. However, the founder of Bitcoin SV was declared a fraud which resulted in the delisting of Bitcoin SV from famous crypto exchanges such as Binance.
Bitcoin Cash vs. Litecoin
Bitcoin Cash and Litecoin are famous cryptocurrencies. However, Litecoin is the oldest one, as it was launched in 2011. When we compare the transaction fees of Litecoin and Bitcoin Cash, there are major differences. Litecoin has experienced a consistent drop in its transaction fees of around $0.01. On the other hand, Bitcoin Cash has always remained consistent.
Furthermore, the hashrate of Litecoin is also declining over the past year. In June 2019, the hashrate was 430 TH/s which dropped in June 2020 by 230 TH/s. In contrast, Bitcoin Cash is primarily consistent with its hashrate. It indicates that Bitcoin Cash is a more secure network as compared to Litecoin.
Comparison Table of Bitcoin Cash and Some Cryptocurrencies
To learn the differences clearly between these three cryptocurrencies, here is the comparison table that you can use for comprehension:
|Bitcoin Cash||Bitcoin||Bitcoin SV||Litecoin|
|Transaction Speed||Over 100 transactions per second||7 transactions per second||50,000 transactions per second||54 transactions per second|
|Block Size||32 MB||2 MB||4 GB||1 MB|
|Hashrate||1.21 EH/s||280.89 EH/s||35.78 PH/s||591.12 TH/s|
|Market Position||Consistently developing into a secure network with a consistent model and speed||Leading cryptocurrency of the market||Prospective cryptocurrency, but it needs a lot of improvement||It has potential but needs to be improved in transaction speed|
Is Bitcoin Cash a Good Investment?
Before investing in cryptocurrency, you must consider the long-term effect of the investment. Many beginners and inexperienced individuals have encountered loss in the crypto market due to the lack of risk assessment. Currently, the crypto market globally is facing a sharp decline. That’s why you should consider opinions about crypto investment from reliable sources.
Once you have evaluated the long-term effects of crypto investment, you should also research the involved risk factors. By analyzing crypto investment carefully and proficiently, you can take the huge step of investing in Bitcoin Cash.
Is Bitcoin Cash Safe?
Bitcoin Cash is a project that was launched in 2017 with new technology upgrades. It has survived various market fluctuations and provided many benefits to investors. It’s an entirely safe investment as Bitcoin Cash ensures the protection of the assets of investors at all costs. It can easily handle various transactions at a faster speed and at a low cost. Thus, there is no second thought when investing in Bitcoin Cash.
Bitcoin Cash is considered one of the most secure and safest cryptocurrencies. The developers have created this crypto project to tackle all the loopholes of Bitcoin, such as slow transaction speed and expensive fees. We have highlighted the significance of Bitcoin Cash and a detailed guide for buying it without any hassle.