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An Introduction to Bitcoin Cash (BCH)
Political Strife in the Bitcoin Universe Leads to Altcoin
In 2017, led by Haipo Yang of ViaBTC, an economic minority launched Bitcoin Cash (BCH) at block height 478559. This one action made BCH permanently incompatible with the Bitcoin network. The addition of this chain meant there was also a new crypto-asset. And, in 2018, the first major Bitcoin Cash ICO generated $30 million in 2.2 hours.
How is Bitcoin Cash Different?
What’s differentiating Bitcoin Cash from its predecessor is, firstly, the block height. Then, it’s the fact that Bitcoin Cash refuses to use SegWit soft fork. Meaning, it’s no longer compatible with the old code and can be retroactively implemented on the entire Bitcoin Blockchain.
The Current Price of BCH/USD
Bitcoin Cash (BCH)
A Contrasting Philosophy
Bitcoin Core philosophy revolves around the crypto-asset being a settlement layer. It mandates that full nodes should be obtainable through inexpensive hardware and straightforward, standard internet connections.
The logic for this thinking is that the harder it is to run a node, the less likely it is for people to run them. This tactic forces increased mining to consolidate and could put Bitcoin’s censorship resistance at risk.
Conversely, the Bitcoin Cash community believes in both technological improvements and transactional throughput throughout the network. They see these efforts as primary contributors to decentralization and as attractive to more participants despite the many barriers being faced.
BCH aims for a system that removes secondary layers while scaling to Visa-level transactions. It also disregards the idea that average users would care ever to run a node. It’s also worth noting that Bitcoin Cash is Simple Payment Verification (SPV) friendly. Payments can be verified in the main chain without validating the entire blockchain on the client’s device.
Bitcoin Cash Price Predictions For 2019
Unable to Process Larger Blocks?
Current news suggests that the future of Bitcoin Cash might be in question. Co-founder, Amaury Séchet, has indicated that BCH can’t process a block of transactions 2 megabytes or larger. Since larger blocks are at the forefront of its vision, this might be an admission of failure on BCH’s front.
Bitcoin Cash has struggled against fiat currencies and Bitcoin in recent times, and this technical difficulty doesn’t sound like it bodes well for the future.