Table of Contents
- 1 What Is Bitcoin Cash: How It Started?
- 2 What is Bitcoin Cash: What Does It Do?
- 3 What is Bitcoin Cash: How do I buy Bitcoin Cash?
- 4 What Is Bitcoin Cash: How Is It Mined?
- 5 What is Bitcoin Cash: Conclusion
What Is Bitcoin Cash: How It Started?
Bitcoin vs. Bitcoin Cash | Source: vastavaBitcoin lovers understood that this was becoming a big problem, especially now that the cryptocurrency was getting so popular. To help find a solution, developers suggested two different ideas.
Idea 1: Change the Format of Each BlockHere’s a real-world example for you: Think about writing each Bitcoin transaction on a blank sheet of paper. First, you would need to write the wallet addresses of both the sender and receiver. Then, you need to write the individual signatures for each transaction. Think about it, this would take up quite a lot of space on your sheet of paper! So, one group of developers suggested separating the one sheet of paper in to two. One sheet of paper would have the addresses of the sender and receiver, while the other sheet would contain the signatures. Essentially, as there would be more space on the paper, more transactions could be processed!
Idea 2: Increased Block SizeAnother group of developers thought that this was a bad idea. Why? Well, although changing the format of each block would technically increase Bitcoin’s transaction speed, it would only be a temporary solution. So, when the Bitcoin network becomes even more popular, it would require another upgrade. They thought that the best way to solve Bitcoin’s speed issue was to increase the maximum block size.
Which idea was most popular?Well, in the case of Bitcoin, nobody can make changes to the system unless most people agree. So, to decide which option was chosen, it went to a vote! Can you guess which idea won? Idea 1! Idea 1 received 97% of the votes! However, for the Bitcoin blockchain to make this change, the system needed to perform a soft fork. Of course, the group of developers that preferred the solution in idea 2 weren’t happy with the final decision. So, they decided to perform a hard fork which created Bitcoin Cash!
Note: When we talk about a fork, it means that changes are made to the design of a blockchain. When a soft fork happens, it means certain rules are changed, but the new blocks are still recognized by the original software. However, in a hard fork, the new blocks operate on a separate blockchain – just like Bitcoin Cash!Well, now that you know the story behind the Bitcoin Cash fork, let’s find out the answer to “What is Bitcoin Cash?”!
What is Bitcoin Cash: What Does It Do?Bitcoin Cash was officially released in August 2017. Its technology is very similar to Bitcoin, and there is also the same amount of coins — 21 million.AcceptBitcoinCash which lists all the different merchants that allow you to use Bitcoin Cash. They include things like accommodation, music, casinos, perfume, fitness products, clothes and much more! Guess what? If you live in South Africa, you can even pay for legal advice with Bitcoin Cash!
What is Bitcoin Cash: How do I buy Bitcoin Cash?Although you no longer need to ask “What is Bitcoin Cash”, you might need some help buying some! The easiest way to do this is with a broker exchange. The most popular of these is Coinbase, as it’s great for beginners. You can buy Bitcoin Cash using your Fiat currency via credit/debit card or with your bank account.
Opening an Account with Coinbase
- Visit the Coinbase homepage here, and click on Sign Up!
- At this point, you will only need to enter your name, email address and create a secure password.
- You will then need to verify your mobile number. So, enter the code that is sent to your phone in to the Coinbase website.
Verify your identity
- First, click on Buy/Sell at the top of the page.
- Coinbase will now tell you that you need to add a payment method to complete your account set up. Click on Add Payment Method.
- You are given two choices. You can either add a credit/debit card or a bank account. The quickest way to buy Bitcoin Cash is with a credit/debit card. So, we will select that option.
- You will then need to upload your ID. This is a requirement at most exchanges when you want to use a credit/debit card. Click on Upload ID.
- Coinbase give you three options. You can upload your passport, driving license or a government issued ID. Click on the one you want to upload.
- Now you need to decide how you want to upload your ID. You can do this by either using your webcam, mobile phone or simply upload the file from your computer. Select the method you wish to use.
- If you have uploaded your ID correctly, you will see the message below. If you get an error, this is probably because the image quality was not to a high enough standard. Try again until it is confirmed.
Add your Payment Details to Coinbase
- Here you need to enter your billing address. It must match the address of your credit/debit card, otherwise you will get an error!
- You will now be asked to enter your credit/debit card details. Don’t worry, Coinbase have high security, so your details are safe. Once you have done this, click on Add Card.
How do I Buy Bitcoin Cash at Coinbase
- First, click on Buy/Sell at the top of the page. Then click on Bitcoin Cash.
- As you will see in the below image, you need to enter the amount of Bitcoin Cash you want to buy. In our example, we want to buy 100 Euros worth of Bitcoin Cash, so that is what we have entered in to the box.You will notice that the BCH box updates. At the time of our trade, we are receiving 0.12377315 Bitcoin Cash in return for 100 Euros. However, this will change depending on the market price at the time of your purchase.Note: Are you wondering “What is BCH”? BCH is the currency code for Bitcoin Cash. Just like real-world money, where USD is U.S Dollars and GBP is Great British Pounds, every cryptocurrency has their own code.
- Once you click on Buy Bitcoin Cash Instantly, Coinbase will ask you to confirm your payment details. Click Confirm.
What Is Bitcoin Cash: How Is It Mined?Like most cryptocurrencies, Bitcoin Cash is decentralized. This means that no single person or authority has control over the network.
Note: If a network is controlled by somebody, that means it is a centralized network. Think about Yahoo. All of their data is stored on a centralized server. When their servers were hacked in 2015, the hackers gained access to over 500 million accounts! That wouldn’t be possible on a decentralized network like Bitcoin Cash.However, for a decentralized system to operate, it requires nodes (computers) to verify transactions. So, how are transactions verified? People known as miners use computing power to solve mathematical equations on the blockchain. Once a node on the network solves the mathematical equation, it verifies a transaction block. It then receives a reward for verifying the transaction. This reward, in the case of Bitcoin Cash mining, is a Bitcoin Cash coin. In the current day, though, it is becoming harder and harder to earn money from mining. There is so much competition that only those who can generate huge amounts of computing power are rewarded. To generate enough computing power to become a successful miner, you must invest a LOT of money! (And I’m talking about 10s of thousands.) However, there are other options for all you beginners out there! There’s something called a “mining pool”… this is where you join a network of other miners. Together, you combine your computing power to try and solve the mathematical equations to earn the Bitcoin Cash reward. If your mining pool successfully verifies a Bitcoin Cash transaction, the reward is split equally between your mining pool! Cool, huh?