Bitcoin Cash - Scam or the future? | All you need to know
Hello guys, it's muzykeq. Let's begin.
1. What is Bitcoin Cash?
CEO of Bitcoin Cash is Rick Falkvinge. What's interesting is that he's the founder of Swedish Pirate Party. Important is that pirate parties are opposed to control of data by governments and copyright law, what my explain why he got interested in cryptocurrencies.
Bitcoin Cash was created on 1st August 2017 because of Bitcoin's hard fork. Hard fork means a divide of blockchain in two parts, what causes a new crypto to appear. The inititors of change in the blockchain proposed extension of the size of blocks from 1MB to 8MB, but because owners of nodes didn't like the idea, the blockchain splitted creating Bitcoin Cash.
Extension of blocks' capacity was meant to solve the problem of Bitcoin's scalability, which became a problem after a huge amount of people got interested in it. It causes high transaction costs and long waiting time for a crypto-transaction. It's because of creation of new bitcoins after creation of a block (the current rate is 12,5BTC/block). These Bitcoins are divided to the nodes, that do their job right. The more people use Bitcoin, the price is higher, what encourages more and more people to mine. That causes increase in node's number, making transaction speeds lower. And that's due to the fact, that a single information about a transaction happening somewhere in the Bitcoin web has to be delivered to more and more nodes, which takes time and electricity costs, meaning more money per transaction has to be paid.
Expansion of blocks' capacity is one of the solutions, leading to packing quickly 8 times more transactions in a single block, and after that deciding on the correct chain. The administrators of Bitcoin Cash plan to implement in the future even larger blocks, when the need arrives. The minuses of BCH are before all having a CEO. This may sound well, but the real decentralized cryptos are administered by independent developers and miners. The problem is also vunerability for attacks, because of Bitcoin Cash having a much lower market cap that the original Bitcoin.
2. What does the Internet say?
The Internet has a pretty sceptical additude to Bitcoin Cash. Some believe it's just a scam, and that the creators just want to earn some cash adding "Bitcoin" to the name and exploiting the good opinion of the real BTC. That's an opinion shared also by Phil Konieczny, a polish YouTuber and a really experienced guy in the topic. Some see in Bitcoin Cash the "new and rightful one". The truth is, that the initiators of BCH never wanted to create something new from scratch, but to make slight changes in the original.
3. What are some medias I can follow?
The administration of Bitcoin Cash doesn't run any social medias, so informing yourself about upcoming changes might be harder. You could follow the Twitter profile of the CEO Rick Falkvinge under @Falkvinge (https://twitter.com/falkvinge), but most of Tweets there don't have any colleration with cryptos, and that's because, as I said before, Mr. Falkvinge is a politician, so his personal site shows mostly it. Fortunately we have, probably already known to you, Reddit, under there: https://www.reddit.com/r/Bitcoincash/. BCH was a star in many articles of crypto-news sites, but also in the TV RT.
4. What was the price like?
How much is it now?
Bitcoin Cash's history of price is short, but how turbulent. In the moment of creation it has costed $556. Till the end of December it was in a strong uptrend, reaching its top on 20th December, when the price was as much as $4092. After Christmas time, it started to drop quickly, reaching the bottom on 6th of February at the price of $785. The price is now about 75% lower than it's ATM. It's on the 4th cryptocurrency ranked by capitalization value.
5. What the price is going to be?
There are some upcoming events that may influence the price in a positive way, like opening of a cryptoexchange, where BCH will be a basic trading currency. In May and November one of developer groups working on Bitcoin Cash is going to hard fork, what might take the price up just before. But still, there are many more cheaper and faster cryptos than this one, which may bring more attention than this one.
I hope it helped <3
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