What is Bitcoin Cash (BHC)?
Bitcoin Cash (BCH) is a cryptocurrency that intends to offer an alternative to the world’s oldest and most widely traded cryptocurrency, Bitcoin (XBT).
Launching in 2017, Bitcoin Cash was created by a group of Bitcoin users who disagreed with the roadmap proposed by the project’s principal developer group, Bitcoin Core, and who believed different technical decisions were needed to bring Bitcoin to a global audience.
Bitcoin Cash proponents tended to believe Bitcoin required modifications to make it competitive with traditional payment systems like Visa and PayPal. They also advocated for lowering the fees users pay to send transactions, preferring to shift these costs to other parts of the network.
Toward this goal, Bitcoin Cash modified Bitcoin’s code and released a new software version with features that were no longer compatible with Bitcoin. At launch, this effectively split Bitcoin into two blockchains (Bitcoin and Bitcoin Cash) and two separate assets (XBT and BCH).
This meant any user who owned XBT could claim an equal balance of BCH at the time the two blockchains separated.
Since then, Bitcoin Cash has been quick to add new features, increasing the amount of data it can store in each block to 32 MB. (Bitcoin has since moved to an entirely different system for counting its transaction data.)
Bitcoin Cash has also since borrowed features from other cryptocurrencies, including functionality that enables users to launch new types of tokens on its blockchain.
What Are the Benefits of Bitcoin Cash?
Extremely Low Fees – BCH offers transaction charges that are next to nothing. It means people can send and receive any sum of money without worrying about exorbitant service fees.
Offers Greater Privacy – Using a cryptocurrency like BCH means you have more control over your financial’s privacy, as traditional financial institutions require you to share a lot of personal information.
Exclusive Promotions – Since BCH eliminates bank card fees from the equation, merchants can offer better rates, discounts, and promotions using this alternative payment system.
Decentralised – Just like Bitcoin and Ethereum, it is also based on a decentralised peer-to-peer network, which means no single powerful entity has an unreasonable amount of control over the digital currency.
Stable & Secure – Compared to other highly volatile cryptocurrencies, BCH is relatively stable and offers highly secure blockchain technology, which prevents any data breaches or loss of funds.
Quick Transactions – Since it uses larger-sized blocks, miners can process a higher number of transactions enabling fast and reliable transaction processing and verification for users.
Robust Payment Infrastructure – Being a payment focused digital currency, it has built robust payment features for both the consumers and merchants to ensure quick, convenient and affordable payments.
How Safe Is Bitcoin Cash?
Bitcoin Cash uses a robust blockchain technology, which is pretty much impossible to break into. Your transactions and fund transfer records can’t be tampered with or changed by a single individual as blockchain requires unanimous approval from all nodes. Cryptographic encryption adds another layer of security to the entire payment infrastructure providing a way to conduct safe and secure transactions.
If you want additional security, you can always use physical or software wallets to store your BCH coins. Compared to trading platform accounts and exchange storage, dedicated wallets offer an enhanced security level, which is strengthened through 2FA and passphrase.