Even if you hardly know anything about cryptocurrency, Bitcoin Cash is a term that gets thrown around a fair lot. But what exactly is it? Read on as we explore this question in more detail and tell you the most important things you need to know about it.
Not your Traditional Currency- Bitcoin Cash
Bitcoin Cash (BCH) is a cryptocurrency created in 2017 from a ‘fork’ in Bitcoin (BTC). The fork can be seen as a branch on a family tree, which then forms new branches of its own. Essentially, Bitcoin Cash is a spin-off of Bitcoin. Being a cryptocurrency, it is 100% digital. It lives in the online world. There are no bricks and mortar stores to hold it as there is with traditional currency: e.g., coins in a wallet, money in the bank.
How Exactly Does Bitcoin Cash Work?
To put it simply, Bitcoin Cash works exactly the same as Bitcoin. Both have a hard cap of 21 million assets, both use nodes to confirm transactions and use a PoW algorithm. However, Bitcoin Cash works much faster and has lower transaction fees than its predecessor. It’s ideal for smaller transactions like buying a cup of coffee. But you could also make larger purchases, like buying a car or house.
Bitcoin Cash supports smart contracts and apps like CashFusion and CashShuffle. Given that cryptocurrency currency is still fairly new and evolving, crypto payments are currently not widely accepted. But as the technology develops and more people use it they will become more widely accepted.
Investing in Bitcoin Cash – Is it Safe?
Given the technology is still fairly new and so still experimental, there are no guarantees with investing in Bitcoin Cash. In addition, it isn’t supported and regulated by any central authority like a bank or financial institution. It is highly volatile but if you’re willing to do your research well, accept the risk, and not invest more than you can afford then you’re less likely to lose much. But if you don’t do these, you have a higher chance of losing. The fact is many investors have yielded high returns to Bitcoin Cash and others have lost thousands and even millions in funds. So you can’t be naive or ignorant. You must know what exactly you’re getting yourself into. Lay the groundwork and then start investing if you want.
Core Features of Bitcoin Cash
Bitcoin Cash at its core represents a fundamental shift away from money as we have always known it. In fact, it requires a paradigm shift in society for people to fully accept it, as it comes with features that many would see as controversial. But many others would see it as a benefit and even Godsend:
- It’s a decentralised peer-to-peer electronic cash system that doesn’t rely on any central authority, such as a financial institution or government.
- Open to anyone, as nobody controls or owns Bitcoin Cash. There is no CEO, Chief Financial officer, etc that you go to.
- It lives entirely online so has no physical equivalent: cash in your pocket
- It’s totally reliant on online technology. There are no bricks and mortar that you get with a bank.
- Banks have absolutely no say in it, so can’t go to your local bank and enquire about it. They might have an opinion on it, but they are not authorities on it.
- Evolving technologies are working all the time at making it safer and reducing the risk of fraud, hacking, etc.
Using Bitcoin Cash
The above core features of Bitcoin Cash along with others make it a highly effective medium for investing and using it on the market. There is a lower barrier to entry given its decentralised platform, and its openness is hailed as an enhancer of global economic freedom by crypto fans. As mentioned previously it’s always important to do your research first, know the risks and not invest more than you can afford.
By now, you should hopefully have a much better understanding of what Bitcoin Cash is and know whether it’s for you or not.