For the outside world, BCH may be regarded as the most successful branch of the original bitcoin. Although many dead or surviving IFO coins are also using the name of “bitcoin” (such as BTG, BCD, etc.), there is no doubt that BCH is the only bitcoin branch separated from the bitcoin community, which is determined by BCH’s attributes, community consensus, development and history. Many people even think that BCH is the real bitcoin.

In this article, we will explore the origin of BCH and BTC and whether BCH is worth investing.

Bitcoin history

Bitcoin was originally created by an anonymous person named Satoshi Nakamoto in 2009. After the global financial crisis in 2008, Satoshi Nakamoto believed that the currency should be decentralized and uncontrolled.

The idea of bitcoin has successfully attracted the attention of many geeks. This group is called cryptopunk. Many people who are now hardcore supporters of bitcoin cash were originally those who actively followed Satoshi’s white paper. Bitcoin was originally a decentralized point-to-point e-cash system, which aims to replace the centralized banking system, especially in cross-border transactions. Early bitcoin supporters often “boasted” about the speed and transaction cost of sending bitcoins from different countries.

However, with the gradual growth of bitcoin, the situation changed rapidly in 2017, which was an earth shaking year for bitcoin. The price of bitcoin has soared against the US dollar and other legal currencies, but bitcoin is easy to jam because many new users buy bitcoin.

Is bitcoin cash worth investing

During the bull market in 2017, the transaction cost of bitcoin became quite expensive and difficult to control, and the transaction speed became very slow. It may take several hours to complete a transaction. Because of these problems, many of bitcoin’s original supporters disillusioned with the bitcoin network. They began to question whether bitcoin can support all transactions. In order to “realize” the original vision of bitcoin as a decentralized point-to-point e-cash, some well-known community members put forward suggestions to increase the block ceiling (capacity expansion faction).

Roger ver, CEO of bitcoin.com, is one of the key figures in the proposal. The capacity expansion faction believes that it is a good idea to increase the block limit of bitcoin from 1 MB to 8 MB, which will enable bitcoin to handle more transactions and reduce the transaction costs complained by many users.

However, this proposal was opposed by the community members led by the bitcoin core team (lightning faction). Those who hold the “opposition” view believe that due to the low transaction cost, raising the block ceiling will increase the cost of miners. They worry that in this case, the whole bitcoin mining will be unprofitable. They also said that bitcoin has been regarded as “digital gold” and its main use has shifted to “value storage”.

Neither camp can find a solution that both sides believe is acceptable. For this reason, the expansion faction finally created the initial bitcoin on August 1, 2017. The block height 478557 had a hard bifurcation, and the subsequent “new” bitcoin was named bitcoin cash. They use the name bitcoin cash because they believe that bitcoin was originally used as cash. The name “cash” behind “bitcoin” is to commemorate the original vision and purpose of bitcoin itself.

Bitcoin cash

On May 15, 2018, BCH successfully upgraded the plan again, and bitcoin cash raised the block limit again. At present, the block limit of bitcoin cash is 32 MB. In contrast, BTC can only process 4.4 transactions (TPS) per second, while BCH can process 116 transactions per second.

In addition to the differences in speed and transaction costs, bitcoin and bitcoin cash are not much different technically. They have many similarities. Scripts, blockchain browsers, and even BCH transaction addresses are very similar (or even the same) to bitcoin. Many BCH supporters often call BTC “bitcoin core” and BCH “real bitcoin”. Of course, after the birth of BCH, the two communities have argued about naming countless times.

BCH community

Bitcoin cash has no “founder” because it is the original version of bitcoin. Since the birth of bitcoin cash, many former bitcoin developers have begun to participate in the development of BCH, such as Gavin Andresen, a well-known developer transferred from BTC to BCH. In fact, Gavin has left the BTC community and no longer provides code for it since February 2016.

Another famous supporter of BCH is Roger ver, CEO of bitcoin.com. Due to his positive performance in promoting BCH in many digital currency conferences, Roger may be the most prominent face of BCH supporters. There is also Wu Jihan, the founder of bitmain. As a well-known mining tycoon in the industry, Wu Jihan is also a strong supporter and holder of BCH.

BCH reality adoption

Before deciding whether to invest in BCH, users should also know whether BCH is adopted in reality. BCH is actually one of the most used digital currencies. Many wallet services supporting bitcoin usually accept bitcoin cash. You can also easily buy BCH in binance, coinbase pro, bithub and many mainstream exchanges.

In addition to the digital currency industry, BCH is also adopted by many restaurants and hotels around the world. Countries such as India, Venezuela and Australia have begun to use BCH on a large scale. Travala.com, a popular hotel reservation website, recently adopted BCH as the payment method.

Price relationship between BCH and BTC

There is no doubt that the price of almost all digital currencies follows the price of bitcoin. When bitcoin peaked in December 2017, almost all digital currency prices rose sharply. When bitcoin fell in 2018, almost all digital currencies fell.

Of course, the correlation between BTC and BCH price is stronger than that between BTC and general digital currency. No one seems to be able to explain why, but most experienced digital currency users already know the correlation between BTC and BCH prices.

When BTC rises, sometimes the prices of other digital currencies may not change temporarily, while BCH will rise rapidly after BTC rises. The price correlation between the two is indeed strong (historically). Of course, there are other situations.

Therefore, if you decide to invest in BCH, you need to pay close attention to the price trend of BTC. The price of BTC may be one of the determinants of BCH in the future.

summary

It remains to be seen whether bitcoin cash can eventually surpass BTC in terms of popularity, circulation and market value. However, long-term investment in BCH is still a good choice.

Responsible editor: CT

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