Bitcoin Cash (BCH) is a cryptocurrency that originated from a fork of Bitcoin in August 2017. Often referred to as a “spin-off” of Bitcoin, BCH was created due to disagreements within the Bitcoin community around how to scale the network as transaction volumes increased.
While Bitcoin focuses on being a store of value, Bitcoin Cash supporters wanted to see BCH function more as an electronic cash system for payments and commerce. To achieve this, BCH allows for larger block sizes (up to 32MB compared to Bitcoin’s 1MB limit), enabling it to process more transactions per second.
What is the purpose of Bitcoin Cash (BCH) coin?
The main purpose of Bitcoin Cash is to operate as peer-to-peer electronic cash for regular day-to-day transactions. Supporters believe larger block sizes allow for faster and lower-cost payments without compromising decentralization.
By aiming to be cash for the internet age, BCH hopes to fulfill what many see as Bitcoin’s original purpose before it became more of a digital gold and investment asset. Proponents argue Bitcoin Cash is closer to Satoshi Nakamoto’s original Bitcoin whitepaper vision of “electronic cash” that can be used for smaller micropayments.
How does Bitcoin Cash (BCH) crypto work?
Under the hood, Bitcoin Cash works very similarly to Bitcoin, using decentralized blockchain technology with no central authority. Transactions are verified by network nodes and recorded on a public distributed ledger called a blockchain. Miners compete to process blocks of transactions and are rewarded with BCH tokens.
The key differences are Bitcoin Cash’s larger block size capacity and adjusted difficulty algorithm. This is intended to allow for faster transaction confirmation times (around 10 minutes on average) and lower transaction fees compared to Bitcoin. Like Bitcoin, the total maximum supply of BCH that will ever be created is 21 million coins.
Does Bitcoin Cash (BCH) token have a future?
There is debate around how bright Bitcoin Cash’s future looks long term. On the one hand, it has the potential to succeed by fulfilling the original vision of an electronic peer-to-peer cash system. Its transaction capacity and low fees could allow for mass adoption for small daily payments.
However, Bitcoin Cash continues to face an uphill battle challenging Bitcoin’s dominance. It remains considerably less valuable than BTC and has a smaller user/merchant base accepting it. Only time will tell if Bitcoin Cash can sustain itself as a viable cryptocurrency for electronic cash or become relegated as an altcoin. But with improved platform and adoption, it may yet realize its goal.
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When Bitcoin Cash (BCH) coin launched?
As mentioned, Bitcoin Cash launched on August 1st, 2017 after a hard fork from the Bitcoin network. This contentious fork occurred due to disagreements in the Bitcoin community around how to scale the network, with BCH supporters pushing for larger block sizes while Bitcoin opted for the SegWit soft fork.
The split resulted in anyone owning Bitcoin at the time receiving an equal amount of newly minted Bitcoin Cash tokens. It had an initial value around $240 per coin during its first day of trading on exchanges. Over time, BCH would go on to activate further upgrades like double spending proofs and adjusted difficulty algorithms.
Is Bitcoin Cash (BCH) crypto a scam?
No, Bitcoin Cash is not considered a scam and has a legitimate cryptocurrency project behind it. However, like any cryptocurrency, there are still investment risks to consider.
While controversial due to the hard fork split from Bitcoin, BCH has active development and an engaged global community supporting it. Major exchanges clearly list it as separate from BTC. Critics argue over its long term viability and claims of decentralization, but most experts agree BCH aims to function as intended and is not a mere cash-grab protocol. Just do thorough research before speculating on its price volatility.
Is it safe to invest in Bitcoin Cash (BCH) token?
As with any investment, there are no guarantees in cryptocurrency. However, Bitcoin Cash can be considered as reasonably safe to invest in as many major established coins if the proper precautions are taken.
Only spend what you can afford to lose and ensure purchases are securely stored in a non-custodial wallet you control. Back up recovery seeds/private keys appropriately. Do thorough due diligence on price volatility and project roadmap before buying. With the right risk management, investing small sums in BCH over time dollar cost averaging exposes you to growth potential without putting savings at serious risk.
As with any crypto investment, there are inherent risks including hacking/theft or the project failing. But by taking standard safety protocols, holding BCH long term as a legitimized altcoin is a rational speculative investment option for cryptocurrency investors.
Is Bitcoin Cash (BCH) coin worth it? BCH Price 2023
As of late 2023 Bitcoin Cash sits at around $190 per coin with a total market cap of over $3.7 billion. While well below peaks of $3785 in late 2017, this is significantly above the $150 low of 2020. BCH remains one of the top 20 cryptocurrencies by volume.
Its viability case continues getting stronger as block sizes scale to meet payment demands, adoption from merchants/users increases gradually and the currency maintains average transaction fees below $0.01. With further platform upgrades and rising visibility from proponents, many analysts predict BCH appreciating notably in the mid-term if macro conditions favor currencies aiming for electronic cash dominance like BCH.
Overall BCH could prove a worthwhile long term HODL or usage investment based on its active development and fulfilling a distinct niche compared to settlements-focused coins. But as with all cryptos, past gains are no guarantee of future returns, so prudent risks assessment remains key before buying significant sums.
Where to buy Bitcoin Cash (BCH) crypto?
Some of the most popular and trusted exchanges to purchase Bitcoin Cash include:
Coinbase – One of the largest overall crypto platforms offers BCH buys with fiat.
Bybit – Well-regarded pro exchange with deep liquidity for USD/BTC trading pairs.
Binance – Leading altcoin exchange, great for buying with other cryptocurrencies.
Bitstamp – Longtime vetted platform popular for euro/BTC pairs.
Gemini – Regulated US exchange with BCH/USD and good rates/fees.
Cash App – Allows peer-to-peer BCH purchases directly from your bank.
Always verify the exchange is reputable, check local laws and use strong password/2FA authentication when signing up. BCH can then typically be safely stored in personal non-custodial wallets. Just be smart about securing 12-24 word backup phrases.
How to sell Bitcoin Cash (BCH) token?
Selling accumulated Bitcoin Cash follows largely the same process as buying, but in reverse. The basic steps include:
- Deposit your BCH holdings into the exchange wallet from your personal storage.
- Navigate to the BCH trading markets and select whether to trade for fiat like dollars or stablecoins, or convert to another cryptocurrency.
- Determine your asking exchange rate and place a sell order.
- Once an order is filled, your funds will be deposited into the matching wallet – like your bank account for fiat withdrawals.
- Withdraw proceeds to your desired location. Some exchanges may require identity verification for withdrawals over certain amounts.
Some people opt to also spend BCH directly using online wallets or hardware like Bitcoin.com wallet if a merchant accepts it. Either way, securely record or memorize your keys!
How to stake Bitcoin Cash (BCH) coin?
Bitcoin Cash does not currently have native staking capabilities like some proof-of-stake coins. However, coin staking may become possible in the future if the network transitions to a hybrid proof-of-work/proof-of-stake model.
For now, BCH holders seeking to generate yield can look into lending platforms that offer interest on deposited coins. Just do ample vetting of services and only lend what you can afford. With news available in real time thanks to services like EXEcrypto, it’s easier than ever to stay informed about crypto.
How to mine Bitcoin Cash (BCH) crypto?
For those who prefer mining to staking, here are the basic steps to mine Bitcoin Cash:
- Get mining hardware like an ASIC miner optimized for SHA-256 algorithms. High-end equipment is needed to compete professionally.
- Install mining software like BFGMiner or CGMiner that can connect to mining pools.
- Join a BCH mining pool to combine hashing power and split mined coins based on your share of the work.
- Configure your miner’s settings to connect to the pool’s server and start mining new blocks to earn Bitcoin Cash rewards!
With the competitive nature of crypto mining nowadays, staking often has better returns unless you invest heavily in premium mining rigs. But mining is still an exciting way for hardware enthusiasts to participate directly in cryptocurrency networks like Bitcoin Cash.