To all those who didn’t manage to buy Bitcoin...
🙂🍷
Sometimes popular cryptocurrencies face issues related to transaction speed or costs that cannot be resolved within the original protocol. In such cases, part of the community initiates the creation of a fork (an alternative version) to eliminate the shortcomings.
Thus, in 2017, the cryptocurrency Bitcoin Cash was launched based on the original digital currency Bitcoin, aimed at increasing network throughput and reducing fees by increasing block sizes.
Bitcoin Cash is a cryptocurrency that appeared on August 1, 2017, as a result of a hard fork (separation) from the original Bitcoin blockchain. This was triggered by disagreements among part of the community with the core development team led by Satoshi Nakamoto regarding scalability and network speed.
The main goal of creating the Bitcoin Cash project was to solve the problems of transaction mempool overflow in the Bitcoin blockchain. Due to the 1 MB block size limit, the number of transactions processed in 10 seconds was restricted. This led to delays in transaction confirmations of up to several hours and a sharp increase in fees (up to $5-10 per transfer).
The developers of Bitcoin Cash, led by Roger Ver, decided to address these issues and increase the maximum block size to 8 MB. This significantly expanded the network's throughput and increased the transaction processing speed to 60-100 per second with virtually no fees.
Despite their common origins and similar principles of operation, there are several key differences between Bitcoin and Bitcoin Cash.
First, there is the block size of transactions — 1 MB for BTC and 8 MB for BCH. Thanks to larger blocks, BCH can process many more transactions per unit of time — up to 60-100 per second compared to 7 for Bitcoin.
Secondly, due to better scalability, transactions in the Bitcoin Cash network are confirmed in just minutes or even seconds. Meanwhile, during periods of high demand, Bitcoin payments can take several hours.
Thirdly, transaction fees. In the BCH network, they are virtually non-existent and do not exceed one cent even with significant volumes. In contrast, fees in the BTC network during periods of high demand can reach $5-10.
Additionally, there are differences in the mining algorithms. BCH uses an improved mining algorithm, which achieves a more even distribution of computing power.
For those who missed the opportunity to invest in Bitcoin (BTC), there is a chance to invest in Bitcoin Cash (BCH), which will relentlessly follow in the footsteps of its older brother... but currently costs several times less. At the time of writing, its price is around $500.
