The Bitcoin Cash cryptocurrency appeared due to the division of the Bitcoin database into two independent chains. The emerging asset, which has a common history with classic Bitcoin, took the name Bitcoin Cash and the ticker symbol BCH.
Immediately after the fork (split), many exchanges provided wallet owners with the opportunity to receive coins of the new version at a one-to-one exchange rate. That is, if there were 10 BTC on the wallet, then their owner also received 10 units of the new BCH cryptocurrency.
The starting rate of Bitcoin Cash was very high, and the newcomer quickly took third place in terms of capitalization in the top cryptocurrencies, having moved such seasoned veterans like Ltc and Ripple.
However, the future fate of the coin is not so rosy. As soon as exchanges launched Bitcoin cache I / O mechanisms, the exchange rate plummeted from $ 1,300 to $ 250. Such a colossal crash took only two days. Bitcoin Cash has a capitalization of $ 4.8 billion, and the coin remains a serious player on cryptocurrency exchanges.
History of Bitcoin Cash
The date of the division of Bitcoin, and, accordingly, the birth of the new Bitcoin Cash cryptocurrency, was August 1, 2017.
We will understand why and why a hard fork was needed. During the development of the classic bitcoin, few people thought that the cryptocurrency would become so in demand. Programmers decided that one block weighing up to a megabyte in ten minutes is enough. However, popularity grew rapidly. And with it, the load on the system also grew. Space in the blocks was sorely lacking. The transaction processing speed was falling.
The transfer could wait until half a week. The system of bribing miners for adding a transaction to a new block without a queue began to develop actively. It became clear that the problem could not be solved without a global redesign of the entire system. And it could be processed in two directions:
- increase block size;
- reduce the information that is entered in the block.
The ideal option was to implement both points at once. But there was one big “but.” Bitcoin is a decentralized system. In order to realize global change and leave the coin as a single unit, the consent of all key participants is necessary.
Key developers, major miners, and exchanges were to give a positive response to the proposal to move to new standards.
The separation itself was not sudden. It was preceded by a period of several weeks, during which dozens of discussions were held on how best to implement the update.
It was proposed, in particular, to leave the old block size, but to take out part of the information in an additional block. However, major miners took this option with hostility. But the idea of the creators of Bitcoin Cash to increase the size of the blocks and remove some of the information – many liked it. And then the question arose of a smooth transition. Most participants wanted a smooth gradual upgrade of the system. However, Chinese pools began to push the idea of instantly switching to a new protocol.
In the end, without reaching a common decision, the participants made a division into the classic BTC and the new cryptocurrency BCH. The separation point was block No. 478558.
Immediately after the separation, the classic rate and the Bitcoin Cash rate underwent significant fluctuations. However, in the future, the main growth remained for the classics. The prospects for Bitcoin Cash are not exactly known yet.