Bitcoin Cash – What is it?

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-Bitcoin Cash – emerged as an alternative to Bitcoin from a fork and has grown into one of the largest crypto currencies on the market. BCH was created because there was a dispute in the Bitcoin community about the scaling of the blockchain. New block sizes were needed.

Bitcoin Cash – What is this Bitcoin code?

The single block of Bitcoin’s blockchain is 1 MB in size. There are good reasons for the Bitcoin code: The transactions are stored in this block before a new block has to be created by mining. With an infinitely large block, users would have difficulty downloading the block chain. Therefore, the block size was limited to 1 MB. This was completely sufficient to start the Bitcoin. In the meantime, however, so many transactions have been carried out that the block is quickly filled. The miners charge fees for prioritizing transaction requests. Otherwise, the transactions could take hours.

The Bitcoin profit was mainly about increasing the block size

And that from 1 MB to 8 MB. A fork is a branch of a software project in which the code of a software, in this case the Bitcoin profit, is copied and then further developed separately. BCH’s fork was preceded by a dispute about Bitcoin’s future and how to solve the scaling problems. This dispute lasted two years, until some members of the Bitcoin community carried out the hard fork on August 1, 2017.

However, the problem for mining was that many of the transaction fees from which miners also benefited would be eliminated. In the beginning, there were actually far too few miners. At Bitcoin, the difficulty of creating new blocks adapts every 2016 blocks. At BCH, the “Emergency Difficulty Adjustment” had to be introduced because you couldn’t wait until 2016 blocks were generated to adjust the difficulty. As a result, many miners made a switch and merged to form Bitcoin Cash Mining Pools. The demands on hardware and power costs are still very high and solo miners still have little chance of profiting at all.

Since both crypto currencies are largely the same, the same requirements are placed on mining. Complicated SHA256 algorithms still have to be solved. A Bitcoin Cash Calculator can be used to determine whether BCH mining is also worthwhile in terms of hardware acquisition costs and power consumption. Finding a BCH Mining Pool is advisable.

For the user, the higher block size of 8 MB has the advantage that the fees for transactions are considerably lower. In November 2017, sending 1 BCH cost around 20 cents, while sending 1 Bitcoin cost 20 dollars. Apart from that, both crypto currencies are the same. During the hard fork, owners of Bitcoin had the opportunity to exchange these 1:1 into the new crypto currency.

Another hard fork has been announced for 15 May 2018 to increase the block size to 32 MB. The community sees this hard fork as positive and necessary to solve further scalability problems.