Bitcoin Cash

#4
Price: $547.438205045
Change(24h):
-2.3%
Volume(24h): $425,325,757
Market Cap: $9,472,254,832
Bitcoin Cash was launched оn August 1, 2017 as a hard fork of Bitcoin (BTC), aiming to resolve the headliner's issue with slow transactions and rising transaction fees. It is designed to ease mining difficulties and to be used both as a digital investment asset and means of exchange. BCH features a block size limit of 8MB, well above BTC’s 1MB. The bigger block size helps miners to process more transactions, thus making payment settlement faster, provides for lower fees and improved scalability.

Latest Hight: $0.00

Bitcoin Cash Markets

# Source: Pair: Price:
1
OKEx
BCH/BTC
$736.8523841536
2
OKEx
BCH/USDT
$732.7229
3
Huobi
BCH/USDT
$733.2548769
4
HitBTC
BCH/BTC
$737.40450944
5
Bitfinex
BCH/USD
$729.98
6
YoBit
BCH/BTC
$738.9901700736
7
Binance
BCH/BTC
$738.18430976
8
Bithumb
BCH/KRW
$741.402679034571
9
Binance
BCH/USDT
$732.4117437
10
GDAX
BCH/USD
$728.54

 

Bitcoin Cash - An Attempt to Solve the Scaling Issue with Bitcoin

 

• Area to disrupt: Fast transactions, Cheap transactions

• Competition: BTC, LTC, ETH

• Founded by: Jed McCaleb and Joyce Kim

• Based in: ---

• Total supply: 21 000 000

Bitcoin Cash official logo

 

The Controversial Move of BCH Price to an All-time High of USD 4355

The total planned supply of Bitcoin Cash (BCH) is identical to the one of Bitcoin - 21 000 000 coins.

However, prior to the hard fork that created Bitcoin Cash, no one knew what the value of this asset will be or whether it would be worth anything at all. The ticker symbol of Bitcoin Cash is BCH, but some exchanges use BCC.

 

Bitcoin-cash price on a smartphone

 

BCH first started trading on ViaBTC on July 22, 2017, reaching USD 888 on its very first day. Six days later some of the major exchanges like GDAX, Coinbase, ItBit and BitMEX announced that they won’t list the new currency on their platforms.

In August, the price of BCH surged from under USD 300 to USD 973 in just three days. However, after exchanges opened deposits a few days later, BCH price lost around 50% of its value.

In mid-September, when China forced exchanges to close, the BCH price dropped to USD 300 again.

 

In November, when the SegWit2x proposal for Bitcoin was ultimately cancelled, all supporters of bigger blocks turned towards Bitcoin Cash. The biggest spike in price came in December when BCH reached its all-time high (as of mid-June 2018) after being listed on SFOX and Coinbase. On December 20, BCH pealed at USD 4355.

 

However, many people believed this was a planned artificial pump with a number of questionable events:

• There were doubts that Coinbase employees were engaged in insider trading of Bitcoin Cash shortly before the cryptocurrency was introduced to the exchange;
• CNBC was basically promoting BCH during an interview with Roger Ver;
• There was no announcement that GDAX will start trading Bitcoin Cash but all of a sudden it was rolled out. Coincidentally though, the roadmap of GDAX was updated just four hours before the release.

 

 

Why Bitcoin Cash Was Created?

Bitcoin Cash (BCH) is a direct offshoot of Bitcoin (BTC) – a hard fork. BCH’s main goal is to increase the number of transactions that can be processed by the network. The purpose was the new chain to increase the blocksize from 1MB to 8 MB. Other than that, BCH has most of the features that BTC has.

The purpose of BCH is to be means of exchange with fast transaction speed and low fees. Its creators claim that the reason BCH exists is “to fulfil the original promise of Bitcoin as Peer-to-Peer Electronic Cash”.

The Bitcoin scalability debate led to the hard fork and the creation of Bitcoin Cash on August 1, 2017. Because of the fork, all Bitcoin holders received 1 BCH for each BTC they held.

In order to understand properly why Bitcoin Cash was created, we have to trace back in time the origins of the Scaling Debate.

Bitcoin Cash website cover

 

 

A Brief History of the Scaling Debate

July 14, 2010

The block size limit of Bitcoin is set at 1 MB on the client in order to prevent the network from spam transactions and DDoS attacks.

October 2010

Jeff Garzik proposes on the Bitcoin Talk forum a patch, so BTC can match PayPal’s average transaction rate. Satoshi, himself, rejects the idea and recommends a future date when this upgrade may be put into action. His exact words are:
"It can be phased in, like:
if (blocknumber > 115000)
maxblocksize = largerlimit"

This will be used as a main argument in the debate in the future – that Satoshi’s original vision was to have large blocks, so it can process thousands of transactions per second.

June 14, 2011

@GavinAndresen, a leading developer during that time, talks to the CIA about Bitcoin and shares this with Satoshi in an email. After sending this email, Gavin never heard of Satoshi again and that was essentially the last time anyone heard of Satoshi.

And without Satoshi, the blocksize limit has no authoritative decision-maker.

2011 - 2013

However, from 2011 to 2013 the general assumption in the Bitcoin community is that the blocksize limit would be removed because it looks more than clear that it won’t scale with such a blocksize.

Roughly in 2013, a few people started making comments that it is important for the decentralization that the blocksize stays in the same.

April 7, 2014

Gavin Andresen is no longer a main developer and release manager of Bitcoin.

May 4, 2015

Gavin Andresen states that the blocksize should be increased as soon as possible.

June 12, 2015

Chinese miners sign a statement they want 8 MB blocks.

June 22, 2015

Gavin Andresen publishes Bitcoin Improvement Proposal (BIP) 101 containing the plan for blocksize increase to 8 MB, doubling in size every two years.

BIP 101 was included in Mike Hearn’s different implementation of Bitcoin, called Bitcoin XT. The changes in BIP 101 would activate a hard fork if 75% of the miners support them and would create a new cryptocurrency – Bitcoin XT.

Soon after that, we started to see censorship in the Bitcoin Talk forum. Theymos, the moderator of r/bitcoin, explained a new policy, which was basically saying that discussions about hard forks, blocksize increase, etc. will be considered “an altcoin” and won’t have a place on r/bitcoin.

So, he started to delete the discussion about Btcoin XT.

This added fuel to the fire and even more people started to think why people are so opposed to raising the blocksize.

August 20, 2015

@Adam Back, The CEO of Blockstream - the leading provider of blockchain technologies – who was also a Core Bitcoin developer states that Bitcoin XT is too risky for the network and it is a really bad proposal.

September 6, 2015

One of the biggest suppliers of Bitcoin mining rigs during this period releases a statement that “in order for the Bitcoin ecosystem to continue developing, the maximum blocksize needs to be increased to 8 MB.” However, this shouldn’t be in a single jump.

December 7, 2015

Bitcoin core development team releases a roadmap with new technologies addressing the scaling issue. This roadmap didn’t include a plan for increased blocks but introduced Segregated Witness (SegWit).

Early 2016

In early 2016, the debate gets even more serious and ugly and another proposal, called Bitcoin Classic, rises from the ashes of the XT/Core debate and slowly gains more and more support among miners. Bitcoin Classic would allow 2 MB blocks with a possibility to enlarge it even further over time.

February 20, 2016

At a scaling conference in Hong Gong an agreement between the miners and Core Developers is achieved that by July 2017 SegWit and a 2 MB hard fork will be activated a.k.a. SegWit2x.

However, eventually Bitcoin Core decided that they will go for SegWit first and indefinitely delay a hard fork.

The Summer of 2016

The so called Blockstream Conspiracy gains more and more popularity. The supporters of higher blocks believe that the Core developers of Bitcoin have private interest not to approve the idea for bigger blocks. The reason is that part of the BTC core developers are co-founders of Blockstream – which is a for-profit corporation that sells sidechain technologies and employs many Bitcoin Core developers.

The debate around the blocksize continues with no consensus.

May 23, 2017

Digital Currency Group - a group of companies representing a critical mass of the Bitcoin ecosystem – publishes an article announcing their plan to implement SegWit2x and activate a 2 MB hard fork within six months.

This agreement was made during Consensus 2017 and it is referred as the New York Agreement.

Activation of SegWit in August 2017 is the first step of the proposal. The next one involved a hard fork in November 2017 to increase the blocksize to 2 MB.

June 2017

China’s Bitmain, the world’s biggest mining hardware producer and mining pool provider, announces a plan to do a hard fork, then named Bitcoin UAHF (User Activated Hard Fork).

July 22, 2017

Bitcoin Cash announces it will fork from the Bitcoin blockchain in just 10 days – on August 1.

 

August 1, 2017

Bitcoin Cash is created. The name was originally proposed by Chinese mining pool ViaBTC.

Upon launch, Bitcoin Cash inherited the transaction history of the Bitcoin cryptocurrency on that date, but all later transactions were separate. Block 478558 was the last common block and thus the first Bitcoin Cash.

Since the beginning of its existence, BCH faced a broader adoption among the cryptocurrency exchanges which is part of the reason why it is the most popular cryptocurrency that has forked from the Bitcoin network.

Bitcoin Cash logo on flag

November 8, 2017

The developers of SegWit2x announce that the planned hard fork had been canceled due to a lack of sufficient consensus.

 

 

BTC vs BCH - Same Problems, Different Approach

Bitcoin Cash offers a different answer to the problem with scaling – an increased blocksize, from 1 MB to 8MB.

The currency has enjoyed a quick surge in popularity – driven partially by the support of big names in the crypto world such as Roger Ver, Gavin Andresen and many more. Some people believe that Bitcoin Cash might simply be addressing current problems in Bitcoin that might not exist for much longer. As I pointed out in the brief history of the scaling debate, Satoshi himself realized that it will come time when the blocksize will be increased.

Hence, once Bitcoin copes with its current scaling issues – it might eliminate the use case of Bitcoin Cash entirely. The implementation of SegWit was the first step in this direction. As Andreas Antonopoulos says in one of his YouTube videos, SegWit is first and foremost a transaction malleability fix and secondarily a scaling fix.

On the other hand, Bitcoin Cash has plans to fix transaction malleability, too. They just decided to solve the scaling issue first. Which is the right way to do it and which side you should choose in this scaling debate is up to you to decide.

In the end of the day, you can still use both cryptocurruncies.

 

Description text: Lyubo Zhechev
(The views and opinions expressed by the contributor in this text should not be considered financial advice, neither treated as an expression of Coins.Online’s view.
Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.)

 

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