Bitcoin Cash (BCH) is one of the newer kids on the cryptocurrency block but it has already made a name for itself.
Also known as CryptoCash, Auroracoin, and more recently Cash, BCH is a spinoff of Bitcoin (BTC), the world’s #1 digital currency. Since launching in 2017, Bitcoin Cash has climbed as high as #17 on the crypto market cap rankings and today represents the 4th largest cryptocurrency (market cap of approx. $12 bln).
What is unique about Bitcoin Cash is that it is a cryptocurrency that focuses on improving the usability and efficiency of payments and removing the need for trusting third parties (such as banks and the government).
These features make Bitcoin Cash ideal for use as a substitute for traditional money transfers and for handling everyday purchases. In fact, it has gained popularity so quickly in part because it is currently the cheapest and simplest way to exchange money abroad, as a recent report from crypto exchange HitBTC states.
Unique Features Of Bitcoin Cash
Unlike most other cryptocurrencies, Bitcoin Cash has a few unique features that set it apart.
No Confusion With Traditional Currencies
Since Bitcoin Cash is based on the Bitcoin blockchain, it inherits all of the advantages of that protocol. This includes the ability to track transactions and funds securely, the lack of a central bank, and the absence of a single administrator (i.e. a ‘god-like figure’).
However, one of the main advantages of Bitcoin Cash is that it has a defined purpose and use cases. This is because Satoshi Nakamoto, the pseudonymous creator of Bitcoin, designed the currency to be a universal payment system, equal among all people and businesses. The main purpose of Bitcoin Cash is to enable instant, private, and secure payments to anyone, anywhere in the world.
Greater Than The Sum Of Its Parts
What is great about Bitcoin Cash is that it is the result of a well-thought-out, long-term strategy. This is demonstrated by the fact that, despite its simplicity, it offers a number of unique features that make it more complex and versatile than the sum of its parts (i.e. Bitcoin and other cryptocurrencies combined).
For example, not only does Bitcoin Cash offer the above-mentioned advantages of Bitcoin itself but it also has a greater collective security due to its bimonthly (instead of monthly) blockchain update. This makes each transaction more secure and resistant to fraud due to the increased number of potential reviewers. Additionally, since Bitcoin Cash is a spinoff of Bitcoin, all current and future developments, such as upgrades and new coins, will be considered and applied to the entire Bitcoin Cash network. This further safeguards the security of all users and makes the entire network more resistant to cyberattacks and other threats. Finally, as a blockchain-based currency, Bitcoin Cash is completely transparent, allowing users to verify all transactions, including those that take place between two parties that are not in the know about each other.
On the downside, due to its limited supply (currently there are only 84.8 million BCH in circulation with the total amount fixed at 1,142,000,000 BTC), Bitcoin Cash is more susceptible to price fluctuations than other coins or currencies. Indeed, the cost of using Bitcoin Cash as a currency can vary from $0.005 to $0.03 per transaction, depending on the exchange rate and whether or not the recipient is in possession of a cryptocurrency miner. Finally, since there is no widely-known authority overseeing the entire network, Bitcoin Cash can be subject to attacks from hackers, the possibility of which is increased by the increased complexity of the network.
The Future Of Payments
Due to its many advantages and unique features, Bitcoin Cash is poised to disrupt the way we use and think about payments. Not only will it be used as a currency but it could also be integrated with other platforms and applications to provide a more robust and versatile solution for everyday use. For example, the Chained protocol, which is built on top of the Bitcoin Cash blockchain, can be used with any software or application that uses Bitcoin (BTC) as a base currency and will enable users to make instant and private BCH-based payments to anyone, anywhere in the world. Additionally, in recent years, numerous startups, digital wallet providers, and other businesses have integrated Bitcoin Cash into their platforms and services to provide better and more convenient ways for users to make and receive payments. For example, Circle, which was founded in 2016 and is one of the largest digital wallets in the world, already supports Bitcoin Cash among other cryptocurrencies.
However, despite its popularity and unique features, there are still some disadvantages to Bitcoin Cash as a currency. First, since it is still in its early stages of development and has limited adoption worldwide, it is more subject to price fluctuations than other cryptocurrencies. Second, since people use Bitcoin Cash as a store of value (i.e. an investment vehicle), there is a limited supply of the cryptocurrency, meaning that the value can increase or decrease based on market forces and the general economy. Finally, since there is no widely recognized authority overseeing the entire network, as mentioned above, Bitcoin Cash can be subject to cyberattacks and other security threats. To mitigate this risk, always keep your cryptocurrency security-focused, well-protected and stored in a hardware wallet, such as a Trezor or Ledger.
In summary, despite its early stage of development, Bitcoin Cash has already made a name for itself and shown that it has what it takes to become a mainstream currency.