Bitcoin Cash was introduced to the markets in August 2017 as a P2P electronic payment system. This is a project that was created by a group of stakeholders whose focus is low transaction fees and scalability.  Bitcoin Cash was drawn from the original source code and as such, the two networks have a whole lot in common. For instance, anyone can join and contribute to the networks as they are open-source. In addition, BTC and BCH operate on a proof of work consensus mechanism.

Since the two are so similar, there are so many people who assume Bitcoin and Bitcoin Cash mean the same thing. However, there are some differences and as a crypto trader or investor, it is imperative to learn the differences. One of the major improvements of Bitcoin Cash is the fact that it has a bigger size limit than Bitcoin. As such, there are more transactions accommodated in each block of BTC, which was raised to 32 MB in 2018. However, even with the increased size, there have very few cases where the BCH block has surpassed the 1 MB size of Bitcoin.

The difficulty mining of BCH is similar to Bitcoin as both are adjusted using the difficulty adjustment algorithm. The only difference is that the mining difficulty for Bitcoin Cash is adjusted right after each block while BTC makes the adjustment after 2016 blocks. In a bid to encourage miners, Bitcoin Cash had introduced the emergency difficulty adjustment, which sought to reduce the mining difficulty for new members. However, EDA was quite unstable and as such, it was later removed.

Bitcoin Cash Main Features

In order to fully understand Bitcoin Cash, let us look at some of its key features and characteristics.

  • The creation of Bitcoin Cash is based on the initial Bitcoin source code
  • The BCH supply has a cap of 21 million, similar to the one on BTC
  • BCH increased the block size from 1 MB to 32 MB in 2018
  • The Bitcoin Cash Mining difficulty is adjusted using the difficulty adjustment algorithm, after every block.
  • The smart contract is a built-in development update

Using Bitcoin Cash

Generally, BCH is designed to be used as cash to make faster payments. You can send and receive money fast using your BCH wallet to other holders with the same wallets. One of the most appealing traits is the fact that it comes with lower transaction fees and reduced the transaction times significantly. As such, when you need to make smaller payments, Bitcoin Cash is a better option, while BTC can be used for crypto trading on https://bitcoinprime.org/.

There are many stores that have started to accept Bitcoin Cash as a mode of payment and this is gaining traction steadily. However, it is still a new concept and with the highly volatile nature of cryptocurrencies, there are some merchants who still have reservations. There are so many different crypto wallets that support BCH and as such, you can store your Bitcoin Cash therein. Trust Wallet is one of the safest options for your BCH. Alternatively, you may also want to consider a desktop wallet for your BCH and Electrum Cash is a great option in such a case.

Summing Up

Bitcoin Cash is one of the many cryptocurrency projects that forked from Bitcoin and has managed to remain relevant through the years. While it may not be widely accepted, it is making inroads in gaining recognition as a mode of payment. There are so many features that you will love about BCH and we can only wait and see where it goes.