BCH working principle
Despite the turbulent history, BCH is still not much different from the classic bitcoin. There is exactly the same division into ordinary users and miners, blockchain technology, identical Bitcoin Cash mining methods. So the owners of Bitcoin Cash cryptocurrency coins receive the same bonuses from using BCH as users of the classic crypto coin:
- no registration. Everyone can become part of the system;
- there is no binding of a Bitcoin Cash wallet to a person. Complete anonymity and an unlimited number of wallets;
- Cheap, anonymous transfers around the globe;
- the transaction cannot be frozen or rolled back;
- You can store coins online, on your computer, smartphone;
- the course depends solely on demand, no regulatory intervention;
- the total amount is predictable and clearly knows how many coins can be issued. The option to print an infinite number of coins is excluded.
So the functionality of the “beginner” completely repeats the functionality of the classic coin. The difference is exclusively in the technical part.
Differences from Classic Bitcoin
Let’s figure out what is the difference between Bitcoin Cash and ordinary cryptocurrency:
- block size increased from one to eight megabytes;
- the size of the information entered into the block has decreased;
- difficulty changes every 6 blocks.
In total, all these decisions led to a serious acceleration of the system. If Bitcoin can produce 250 thousand transactions per day, then Bitcoin Cash – up to two million. The transaction processing fee also decreased. Although the latter is rather a minus for miners.
Bitcoin Cash Rate Forecast
After the fever of the Bitcoin Cash rate in the first days after the fork, the rate stabilized and an increase began. However, the prospects for Bitcoin Cash are still not entirely clear. The fact that such large players as OKCoin, Huobi, BTCCPool, Bitmain, F2Pool, BTC.Top, ViaBTC, BiXin, BW, 1Hash, Canoe, BATPool, Bitkan supported the growth is beneficial to the growth.
Although there are many exchanges that have decided not to cooperate with the cache until the situation with the reliability of the beginner is clarified.
In general, those experts who claimed that the original coin will develop much more dynamically than the Bitcoin Cash cryptocurrency has turned out to be right so far. To date, the rate of Bitcoin Cash fluctuates greatly, but almost ten times less than the price of the original coin. However, in the future for the next couple of years, the situation may radically change.
We should not forget that her youth plays against Bitcoin Cash. Investors simply do not trust the new currency. But as trust grows, so does the capitalization of Bitcoin Cash. Falls have almost stopped already, and the Bitcoin Cash rate is growing steadily, although slowly.
The technical aspect also plays an important role. The transition to larger blocks gave the cache a significant margin of safety for the future load. But the original BTC is already
experiencing noticeable bandwidth difficulties. While customers still tolerate this, but at any moment a massive transition to the faster BCH cryptocurrency may begin.
Support for the miners is also very important for development. At the time of the fork, Bitcoin Cash was supported by only 3 percent of miners. However, now its percentage has reached 10. At some point, the process may become avalanche-like. The more Bitcoin Cash mining, the higher the rate; the higher the rate, the more willing to get Bitcoin Cash.
By the way, this can seriously hit the main competitor – the original bitcoin. If miners start massively leaving for a new currency, then the problematic bitcoin bandwidth can even drown. And then everyone will definitely rush into Bitcoin Cash or other cryptocurrencies.
In the near future, the cache is unlikely to move the classic king of exchanges. However, in the foreseeable future, it may well reach its mega-indicators, exceed them and occupy the first line in the world of crypto coins.