Bitcoin Cash is a cryptocurrency that also operates as a digital payment network. It came into being as a result of a hard fork of the flagship cryptocurrency Bitcoin on August 1 2017. With the fork, any person who owned Bitcoin coins ended up owning an identical amount of the new Bitcoin Cash coins.
Bitcoin Cash came into being as an improvement of Bitcoin cryptocurrency. As the popular cryptocurrency became increasingly popular amid a surge in price speculation, people started focusing on its investment value rather than what it was intended to, which is enhancing digital payments.
Considering the amount of people using the Bitcoin blockchain, it takes much longer to process transactions on the chain. In an era where transaction time is crucial, improvements in the technology were highly needed. In 2017, Bitcoin underwent fork that resulted in Bitcoin Cash, whose sizes of blocks in the blockchain were much bigger.
Bitcoin Cash comes with size blocks that range between 8MB and 32MB as opposed to the 1MB block size of the initial Bitcoin. Bigger block size means Bitcoin Cash can process more transactions at any given time. An increase in the number of transactions that the new bitcoin crypto can process also saw a substantial improvement in transaction processing time.
Currently, Bitcoin Cash can process as many 25,000 transactions per block at any given time. In contrast, Bitcoin can process an average of between 1,000 and 1,500 transactions per block. The increase in block size means Bitcoin cash can be used as a more reliable option for daily transactions in a world where digital payments are becoming the order of the day.
Bitcoin cash Mining
Apart from transaction speeds and the amount of transaction per block, Bitcoin cash shares a number of attributes to parent Bitcoin. For starters, Bitcoin Cash coins in circulation come from a process often referred to as mining.
In Bitcoin Cash mining, people connect powerful hardware and computers that are used to solve complex mathematical puzzles. Any correct answer to the complex puzzles results in the addition of a new block in the chain, which is, in return, rewarded with a new Bitcoin Cash coin. Bitcoin Cash relies on the Proof of Work consensus mechanism in the mining of new coins.
What Affects Bitcoin cash price
The fact that the total number of Bitcoin Cash coins that will ever be in circulation is capped has a great effect on the prevailing price. Likewise, forces of supply and demand affect the price. The more the number of people looking to invest or own bitcoin cash amid limited demand often leads to a spike in price.
Media influence has also had a hand in driving Bitcoin Cash price. The hype around Bitcoin Cash ability to improve transaction speed and volume has seen it attract more investors or buyers, conversely driving prices higher.
Political events, as well as regulatory pressures, have also continued to influence Bitcoin Cash price. Political tensions between the U.S and China have seen investors flock cryptocurrency as a means of storing value. Similarly, regulatory pressures have also taken a toll on sentiments, conversely scaring people out of cryptocurrencies such as Bitcoin Cash.