Developed upon the Bitcoin model, Bitcoin Cash is a cryptocurrency or a digital currency. It is a decentralized, peer-to-peer and open cryptocurrency as well as a payment network that is mostly referred to as an offshoot of Bitcoin.
Brief History and the Hard Fork
Bitcoin Cash was developed to address the rising fees and increased number of users in the Bitcoin network that resulted in delays and sluggishness in the processing of transactions. As more people started to use Bitcoin, the network had problems to deal a high number of transactions. Many Bitcoin network users were made to wait for hours or days before their transactions could be processed. This sparked intense debate within the Bitcoin community on how to address the problem with one group favoring enhancement of blocks size while the other wanted a restructuring of how data was stored within the existing blocks.
To enhance transaction speed, one group felt that it could only be done by increasing the blocks size in the Bitcoin blockchain. This group mainly consisted of Bitcoin activists, miners, developers and entrepreneurs and were unable to gather support from the larger Bitcoin community. As a result, the group split off or ‘hard forked’ from the initial Bitcoin blockchain and created Bitcoin Cash as a brand new cryptocurrency.
Bitcoin Cash acknowledges the same blockchain as Bitcoin up to the forking time which happened on August 1, 2017. The fork meant that Bitcoin Cash transactions were recorded on the new Bitcoin Cash blockchain while Bitcoin maintained the initial Bitcoin blockchain.
Bitcoin Cash started to trade in different crypto exchanges on August 1, 2017, and was valued at $240 while Bitcoin core was valued at $2700 at the time. By November 2017, the price had raised to USD 900 fell sharply to USD 300 due to individuals who held Bitcoin disposing of the Bitcoin Cash they got during the hard fork. On 20th December 2017 Bitcoin Cash reached its highest value of USD 4’355. By August 2018, Bitcoin Cash had shed off its value by about 88% trading at around $500.
Major Difference with Bitcoin
The main difference between Bitcoin and Bitcoin Cash is the size of blocks on the blockchain. Bitcoin Cash saw an increment of the block size from Bitcoin’s 1mb up to 8mbs. This means that Bitcoin Cash enables more transactions to processed in one block. Bitcoin Cash also allows larger transaction volumes to be processed faster and for lower fees.