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Bitcoin became Bitcoin Cash or how was that? Some investors are confused. The guide provides clarity! On 1 August 2017 there was a spin-off, from which Bitcoin Cash emerged. What is Bitcoin Cash?
How does Bitcoin Cash work? Interested investors will receive the necessary information here, because this spin-off brought about some changes. What happens to the Bitcoins, for example - can they be exchanged for Bitcoin Cash? First of all, let's go ahead: Bitcoin Cash has quickly established itself in the market and is in high demand. A trend that has an influence on the entire trade.
What is Bitcoin Cash?
The world of digital means of payment is enriched by another crypto currency: Bitcoin Cash. With the spin-off on August 1, 2017, Bitcoin Cash was in fact a competitor in its own family. Bitcoin Cash is based on the same technology as Bitcoin. The market was already positive on the day of the spin-off, as Bitcoin Cash climbed among the first places of the most popular crypto currencies. Although the market capitalisation of Bitcoin Cash is far from being equal to that of Bitcoin, this rapid increase is nevertheless impressive. What is Bitcoin Cash? What exactly are the differences to Bitcoin?
Bitcoin Cash is the result of the spin-off (fork) of Bitcoin. Until 1 August, both crypto currencies had the same basis: the blockchain. However, with the creation of Bitcoin Cash, there is now an extension that is no longer compatible with Bitcoin technology. What triggered the spin-off? There were fundamentally different views on the direction of Bitcoin.
A group of investors and companies wanted a significant improvement in the transactions, but this was not accepted by many Bitcoin supporters. In order to enable faster transaction times, Bitcoin Cash was spun off and created. How does Bitcoin Cash work? In order to achieve this desired, significantly higher transaction volume, numerous technical changes have to be implemented. Nevertheless, the essence as a decentralised means of payment is retained.
Conclusion: Bitcoin Cash emerged from the spin-off of Bitcoin on 1 August 2017. The reason for this was a dispute over the future direction of Bitcoin. An interest group then set out to create a faster crypto currency based on Bitcoin.
How does Bitcoin Cash work?
When answering the question "What is Bitcoin Cash?", the inclusion of the functionality must of course not be missing. How does Bitcoin Cash work? Here, too, the so-called blockchain technology forms the basis. What is this? Put simply, this is an encrypted database in which the transactions are stored. No entry is lost, because every transaction is stored digitally. This technology is comparable to a virtual accountant who keeps a cash book.
The blockchain grows continuously, because more blocks are added with each new transaction. A checksum is added to each individual block. This ensures that no content is lost, because any manipulation would immediately be noticed in the next block. To generate and process the blocks, enormous computing power is required. This process is called mining. As our Hashflare experiences show, consumers can mine crypto currencies there.
One of the key questions before the spin-off was the block size. A Bitcoin block currently has a size of one megabyte. According to some, this was clearly too little to cope with the increasing transaction volume. The block size at Bitcoin Cash is eight times as large.
Conclusion: How does Bitcoin Cash work? The foundation is identical to that of Bitcoin, but after the spin-off there are changes, for example in the block size. A Bitcoin Cash block is eight megabytes in size; the Bitcoin block is one megabyte. This makes larger transfer volumes easier and faster with Bitcoin Cash.