What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a variety of Bitcoin introduced in 2017 to address some of the concerns of the original coin. It is a hard fork, meaning that it’s a whole other currency with an independent blockchain that isn’t compatible with its predecessor. So, it’s not a subtype of Bitcoin but a fully-fledged currency.
It was created to address the issues of high transaction cost, low speeds, and generally lower throughput than expected from a major cryptocurrency such as Bitcoin. In 2017, it was decided by several major holders to split from the Bitcoin network and create a slightly different version of BTC with an improved structure.
That’s how Bitcoin Cash appeared.
What is Bitcoin Cash?
Bitcoin Cash is a separate cryptocurrency and is currently the sixteenth most popular cryptocurrency in the world. It used to be way higher, but a score of more convenient solutions emerged in 2017, making Bitcoin Cash a bit outdated. It still has a lot of utility and plenty of value.
It’s connected to Bitcoin by invisible strings. Although nothing connects the two networks, the name still determines the trajectory of this currency. So, it still has a lot of trading volume, market capitalization, and a large user base from its years as one of the biggest altcoins. Its behavior on the market largely mimics that of BTC.
It has a good deal of utility, as well.
Bitcoin Cash was created as a more convenient way to exchange funds. Due to the cumbersome nature of early Bitcoin, it wasn’t the best tool for scalability and was generally costly to move around. BCH was introduced to address these issues, specifically because it wasn’t very convenient to use Bitcoin in P2P and finance.
To make it more cost-effective, some holders went as far as create a separate currency with the same characteristics as Bitcoin proper but a much better potential for scalability, more lenient transaction fees, and faster processing time. It makes it overall a more pleasant currency with a great payment solution.
As such, it was heavily used in P2P payment platforms, e-commerce, and various crypto projects. It’s usually one of the primary coins in exchanges, wallets, online stores, and crypto-friendly apps. It’s not as popular as Ethereum or Dogecoin, but it finds its fair share of use because of its speed and cost-effectiveness.
BCH is still relevant, even while many other Bitcoin forks have failed over the years. Bitcoin Cash managed to stay afloat, which is largely because it’s so cheap, in addition to being a prominent and valuable coin. It is one of the cheapest coins to work with, which is why it’s still used to power a lot of stores, apps, and similar projects.
So, it’s not unwise to invest in BCH, even if there are plenty of other, more popular, and promising coins. The main reason to get into BCH now is its comparable ease of use. However, you should note that since BCH uses bigger blocks, it’s also less secure. It’s not terribly unsafe, but if you chase security, then Bitcoin is likely better.
Bitcoin SV is a relatively recent introduction, an additional fork to the already forked Bitcoin Cash. It was created in 2018 to be an even more scalable version of BCH. It soon flopped, which is unfortunate because it detracted some value from Bitcoin Cash without contributing much in exchange.
Its whole goal was an even bigger size of blocks, which is meant to increase the throughput of data, make transactions even more pleasant and cheaper, and create an even more scalable ecosystem. It didn’t work out, and Bitcoin SV is largely dead right now. Other forks also failed before it.
BCH on CoinDepo
The CoinDepo platform supports Bitcoin Cash (BCH) as one of the main cryptocurrencies. With CoinDepo, you can safely store your BCH in Compound Interest Accounts and earn from 12% to 18% per annum, depending on the type of interest account you choose. Today, without exaggeration, this is the best offer on the market.
You can also borrow other major cryptocurrencies and stablecoins from CoinDepo against your BCH portfolio without opening a collateral account, which is a unique service that has no analogs in the world of digital assets.