With the continued rise of cryptocurrency, there is often confusion with newcomers to the difference between some of the major coins. What is Bitcoin Cash is one of the most common questions when people start getting into cryptocurrency.
What Exactly is Bitcoin Cash?
Bitcoin Cash (BCH) is a hard fork of the Bitcoin chain that occurred in August 2017. It’s important to note that if you held Bitcoin before 1 August then you were also entitled to an equal amount of Bitcoin Cash. If you have not already done so go to the provider that you keep your wallet and there should be instructions on how you can claim your Bitcoin Cash.
Bitcoin Cash was introduced in an effort to solve some of the scalability issues that Bitcoin is experiencing and will continue to be a problem as more people start to utilize it. Bitcoin Cash introduces a way to set a custom block size for transactions. They changed the default size of each block from 1mb to 8mb. This change allows for Bitcoin Cash fees to be much lower than we are currently experiencing when using Bitcoin which can be over 10%! Not only does the 8mb default limit solve the scalability problem right away. Bitcoin Cash also claims faster transactions , a proven payment system, and more. You can find out additional information about the new features on the Bitcoin Cash website.
Is Bitcoin Cash Really Decentralized?
One claim that Bitcoin Cash has made is that it carries forward the original vision of Bitcoin in that it will remain decentralized. The miner pool for Bitcoin Cash is extremely vulnerabile to a 51% attack. See below for mining information on the last 144 blocks as of 1:25pm on 20 Dec 2017
If you look at Antpool, BTC.com, and BTC.top these pools control over 52% of the hash power. If these pools came together they could effectively control a majority of the direction of Bitcoin Cash. This is something that needs to be closely monitored if Bitcoin Cash continues to make a push as the true alternative and better version of Bitcoin. It is important to note here that these pools also control a large stake in the Bitcoin mining pools as well but because there are so many more miners on Bitcoin it’s hard to influence an entire pool.
Should the Community Have a Say?
Before any changes are made to Bitcoin the community (Miners and others) are polled and input is taken to ensure people have a say in the changes that may occur. Looking at Bitcoin Cash this is a claim they have made, however, in November 2017 Bitcoin Cash conducted a hard fork to upgrade its protocol without considering input from the community on the final decision. You can find the release regarding this upgrade from Bitcoin Cash here. If this type of activity continues it will remain a red flag on how much input or say the people truly have in the future of Bitcoin Cash.
What Should You Do?
So what should you do next? Take a look at the whitepapers and official websites of both Bitcoin and Bitcoin Cash. Decide for yourself which side you think has the better future. Maybe there is a way they can both coexist with Bitcoin being a store of value while Bitcoin Cash remains the preferred payment option due to lower fees. There are many ways this can play out over the next few months and years. The best thing you can do is educate yourself on each topic.
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