Bitcoin cash is a famous, more liquid hard fork of the first cryptocurrency on the planet, Bitcoin. It was created by a group of concerned BTC developers who believed Bitcoin should cheaper to transact with, faster, and less volatile like it was originally designed to be.
Before you ask yourself, “how do I get my bitcoin cash?”, you must understand why it separated from Bitcoin, and why it’s a great coin to invest in.
The History behind the Coin
Bitcoin mission statement was first discussed at length by Satoshi Nakamoto in 2008 in his white paper message to the world. It was supposed to be a decentralized peer to peer electronic cash system that relied on no central authority or financial institution. Instead, it is to be managed by a global public ledger- blockchain- that was to be automatically updated as transactions took place. There will also only be a fixed amount of bitcoin that will be ever created- 21 million to be exact. And finally, it is supposed to be fast, affordable, and reliable to transact with.
As the years passed and Bitcoin grew in popularity, it became harder to manage the coin. Demand grew for the coin, and it became apparent that the blockchain structure in place could not keep up with the global transaction speeds. The 1MB blocks used became overtasked, and transactions became slower, less reliable and more expensive. This development undermined the fundamental vision of the currency itself, and certain groups in the community wanted change.
Bitcoin Cash Fork
The 1MB block issue caused a rift, dividing the community into two factions. The first wanted to maintain the current 1MB blocks, and transform bitcoin into a collectible settlement layer. They proposed to create a lightning network scaling solution to increase transaction speeds and lower cost.
The other faction proposed to increase block sizes, and restore fast peer to peer electronic cash transfer, eliminate high transaction costs, and make transactions reliable again.
The two factions never arrived at a compromise, and eventually, on August 1, 2017, the developers of Bitcoin-ABC initiated a hard fork of the Bitcoin blockchain and increased the 1MB block sizes to 8. The New fork was dubbed Bitcoin Cash, and it solved the majority of the issues that plagued the original coin.
Why Should you Buy Bitcoin Cash?
Bitcoin is far more liquid and affordable to transact with than Bitcoin and has gained a wide market share in a variety of consumer markets. Payments are near immediate, with lower fees.
The currency does not enjoy as much interest from speculators and investors making it a liquid, yet somewhat stable coin to hold, and trade with.
Where to Buy Bitcoin Cash
There are several ways you can buy or trade Bitcoin cash.
From an Exchange
Buying some Bitcoin cash from an exchange is the safest and fastest way to get your hand on the cryptocurrency. There are dozens of exchange that support Bitcoin cash, and you can purchase some by signing up on the exchange and purchasing some with some cryptocurrency or fiat currency.
If you are new to cryptocurrency and are unsure of how to get bitcoin cash from an exchange, do more research on exchanges and pick the best one. To ensure the exchange you pick supports Bitcoin cash, check their official website for a list of supported exchanges.
Before you settle on a single exchange, consider their fee structure, reputation, security features, and volume. Binance has some of the best security features and fees among crypto exchanges worldwide.
You can skip exchanges altogether, and cut deals with individuals who are looking to sell bitcoin cash. You can get unbelievable prices, and save a great deal of money buying bitcoin cash like this. However, there are lax regulations, and you stand the risk of being cheated or tricked out of your money or Bitcoin cash.
How do I Get My Bitcoin Cash Safely?
You stand a risk of losing your BCH both on exchanges and peer-to-peer transactions because of hackers and scammers. Exchanges are popular targets for hacker groups, and you could get easily scammed trading online with random individuals.
To safeguard your BCH at all times, use an offline or secure online wallet, and carry out transactions on trusted platforms. There are many trusted peer-to-peer markets and crypto exchanges with great track records. Don’t store your cryptocurrency on an exchange if you don’t have to, and keep all your wallet details private and off the net.
How many Bitcoin Cash are in circulation?
They have a similar volume to Bitcoin. Bitcoin holders were rewarded with an identical amount of Bitcoin cash. There is approximately 18.7 million Bitcoin cash in circulation.
The future of Bitcoin Cash
Bitcoin cash as a holding or trading currency has bright prospects. It’s liquid enough to serve as a functional fiat and is built on Bitcoin’s original Blockchain architecture with very few differences.
It is the functional successor to the coin and stays true to the mission statement and goals the founder and community had for the currency. Transactions have never been faster with its 32MB block sizes, and many new projects, developers, and institutions support the currency.