All we need to know about Bitcoin Cash

Bitcoin, arguably the most popular cryptocurrency in the world, split into two directions as of August 1, 2017, in an event know as a ‘hard fork,’ creating a new digital currency called Bitcoin Cash..

Why did the split occur?

The initiative was headed by a small group of mostly China-based Bitcoin miners who refused to support a major software upgrade aimed at speeding up transactions on the bitcoin network.

But some members were not happy with the planned upgrade amid concern it did not go far enough to speed up transaction times.

These members forced the blockchain, which is the digital ledger that records every bitcoin transaction, to split into two separate chains, leading to the creation of a new digital currency token, known as Bitcoin Cash.

What’s the difference between Bitcoin and Bitcoin Cash?

Bitcoin, also known as BTC, and Bitcoin Cash, or BCH, are both very similar in nature. The most important difference between the two coins is that Bitcoin Cash allows for faster transaction times by using custom block sizing.

Bitcoin Cash will have a block size with an 8-megabyte transaction limit.
Bitcoin transactions on the other hand are limited to 1-megabyte every 10 minutes.

How much is Bitcoin Cash worth?

At present, Bitcoin Cash is worth just a fraction of the Bitcoin price. But after getting off to a slow start due to lackluster support for its network, the new digital coin has seen a pick-up in trading activity.

The price of one Bitcoin Cash unit rose to an all-time high of $935 on August 20, briefly giving it a market cap of around $13 billion. It started trading at around $200 on a number of different exchanges shortly after the 'hard fork' occurred.

Where can I trade Bitcoin Cash?

Cryptocurrency exchanges are divided on whether or not to support Bitcoin Cash. Several of the leading marketplaces, such as Coinbase and Bitstamp, have previously said they will not support or allow trading of Bitcoin Cash on their exchanges.

Currently, multinational Kraken, China-based ViaBTC and U.S.-based Bittrex are the leading exchanges that offer and support the new digital currency.

Source: Bloomberg Pro Terminal

Jr Trader Ivan Ivanov

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