What is Bitcoin Cash?
Bitcoin Cash or BCH is a peer-to-peer (p2p) electronic cash system that is going to become sound global money with fast payments, micro fees, privacy, and high transaction capacity (big blocks). Like a dollar bill, that is handed directly to the person being paid, Bitcoin Cash payments are sent directly from a person to another.
As a decentralized cryptocurrency, BCH do not need trusted third parties and a central bank. Unlike traditional fiat money, BCH does not depend on monetary middlemen such as banks and payment processors. Moreover, transactions cannot be censored by governments or other centralized corporations. Similarly, funds cannot be seized or frozen as financial third parties have no control over its network.
What is it used for?
It combines gold-like scarcity with the spendable nature of cash. With a limited total supply of 21 million coins, Bitcoin Cash is provably scarce and, like physical cash, can be spent anywhere. Transactions are fast with transaction fees typically less than a tenth of a cent. Anybody can accept Bitcoin Cash payments with a smartphone.
It can be used in different cases. In addition to peer-to-peer payments between people, it can be used to pay participating merchants for goods and services in-store and online. Very low fees enable new micro-transaction economies, such as tipping content creators and rewarding app users just a few cents. It Cash also reduces the fees and settlement times for remittances and cross-border trade. Other use cases are tokens, simplified smart contracts, and private payments with tools such as CashShuffle and CashFusion.
Is Bitcoin Cash different from Bitcoin?
In May 2017, the Bitcoin project and its community split in two over concerns about Bitcoin’s scalability. The result was a hark fork which created BCH, a new cryptocurrency which aimed to be the legitimate continuation of the Bitcoin project as peer-to-peer electronic cash. All Bitcoin holders at the time of the fork (block 478,558) automatically became owners of BCH.
Unlike BTC, Bitcoin Cash aims to scale in order to meet the demands of a global payment system. At the time of the split, the BCH block size was increased from 1MB to 8MB. An increased block size means it can now handle significantly more transactions per second (TPS) while keeping fees really low, solving the issues of payment delays and high fees experienced by some users on the Bitcoin BTC network.
Development to further optimize its network goes on the Bitcoin Cash roadmap, led by the Bitcoin ABC full node team. Planned upgrades take place every 6 months to put into effect the latest network developments.
How can one mine it?
Mining process is so competitive. As the price of BCH in the marketplace rises, more miners are incentivized to bring more hash rate into the ever-increasing miner competition to produce blocks and have them accepted by the its network. More miners make the network more secure by increasing and distributing the hash rate. This prevents a miner from being in charge of the network.
Anyone can mine BCH. Mining requires hardware called mining equipment, which can either be purchased or rented. Miners also need to run a full node software (with the majority of miners currently running Bitcoin ABC) to build blocks and connect to the rest of the BCH network. Mining can be done independently but miners often pool their hash rate together and share proportionally in the earned block rewards.
How can one buy it?
BCH is available at a lot of crypto exchanges, depending on your region. You should search and find a reliable one.