What is Bitcoin Cash?

What is Bitcoin Cash?

Bitcoin Cash (BCH)

Bitcoin Cash is a digital currency which can be used at any location with internet or phone access. You can use it with your phone, tablet or computer to send and receive payments, donations or any type of transaction for that matter. It is fully decentralized, with no central bank and requires no trusted third parties to operate. It is fully functional world-wide electronic cash for the internet.

Bitcoin is a disruptive new concept. A technology which introduces a new paradigm when it comes to monetairy and economic practices. It does require you to gain understading of these new systems to fully grasp the potential Bitcoin has.

Why Bitcoin Cash?

Some of the main characteristics why Bitcoin Cash is better than legacy payment systems are the following.

Bitcoin Cash is a Peer-to-Peer payment system, this means there is no third party like a bank, paypal or visa involved in the transaction. You send it directry to the recipient through the bitcoin network.

Bitcoin Cash is fast. Transactions are instant. When you send a transaction, you send it to the bitcoin network. Once the transaction has propagated through the network – this happens in a matter of seconds – the recipient will pick up the transaction. It is safe to assume the transaction will be securely confirmed in an average time of 5 minutes. You do not have to wait for confirmations on regular transations. For larger transactions (>$100k) you could wait for a couple of confirmations to be 100% sure you received the funds.

Cheap to use. An average transaction costs less than $0.01 in fees, whether you are sending one dollar or a million. Which makes it affordable for anyone to use.

Irreversible. Once a transaction has been confirmed it is 100% irreversible. There are no credit card chargebacks or reversed wires with Bitcoin Cash. When you receive the funds they are all yours.

Free to access. Anyone can use it without opening an account or paying any registration fees. All you have to do is install a Bitcoin Cash wallet app on your phone or computer and you can start receiving and sending Bitcoin Cash payments.

Easy to use. The software needed to use Bitcoin Cash has been long and well developed and undergoes continious improvement. It is easy for the average user to transact with Bitcoin Cash.

Global. Whether you are standing next to each other or are separated by an ocean. If you can communicate the receiving address, you can send a payment.

Bitcoin Cash is censorship resistant. Payments can not be blocked, funds can not be frozen. You own the keys to your funds and you decide who you interact with.

The Bitcoin Cash network is extremely reliable. It offers the best stability and security for your payments to reliably come and go through without any hassle.

Bitcoin Cash is private. Although the ledger is public, transactions are only tied to a random number. Not your name. This is very important, realizing identity theft is an ever growing problem. Financial privacy and security are instrumental towards combating such issues.

A little bit of history (extremely brief version)

Bitcoin Cash came into existance on August 1st 2017 as the result of a multi year long scaling deadlock on the Bitcoin network. After almost 10 years of serious growth and development, Bitcoins usage reached the limits of the network and made it unusable. With no clear consensus on how to solve this scaling issue, due to several reasons, Bitcoin did what it was designed to do. Fork off the code and the blockchain and implement the most popular scaling strategy. Which has successfully been done with Bitcoin Cash. You can look at Bitcoin Cash as Bitcoin 2.0.

An interesting effect from this way of upgrading the network is that everyone holding Bitcoin at the time of the fork automatically holds an equal amount of the upgraded version. Bitcoin Cash in this case. What happens next? Which fork will survice? That is up to the market.

The theory

Originally Bitcoin was invented by Satoshi Nakamoto – an anonynous pseudomim – during the 2008 economic crisis aftermath. Seeing the need for a sound money, a global and digital currency for the internet was created by his creative ingenuity. Gathering a few well known and established tools from cryptography, mathematics and computer science, and tying them together with (socio-)economical game theory (the genius part).

The whole theory of Bitcoin stands and falls with the effects of miners not trusting each other and being selfish, profit seeking, competing actors in the market. They secure the blockchain – your transactions – and save the transactions for a fee that makes economical sense to them.

On the other hand, Bitcoin can only gain value and usability by adoption. Actual usage of Bitcoin is what brings it alive. A global market, with one currency providing fair access to anyone willing. The more Bitcoin is used, the more stable the market will become. Which causes the price to rise and results in a more secure network.

All the details can be found in The Bitcoin Whitepaper.

Khan Academy provides a complete video course on Bitcoin, which also applies to Bitcoin Cash.

References

Wallets

Where to Buy?

Resources

Bitcoin Cash accepted here!

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