Bitcoin Cash

Bitcoin cash (BCH) is a cryptocurrency that started 1 August 2017.

As the name suggests, it’s related to the original cryptocurrency, bitcoin (BTC).

In fact BCH is what is known as a ‘fork’ of BTC. A fork is when a cryptocurrency shares a history with another cryptocurrency up to a point, before going off in a different direction.

Think of it like a fork in the road.

This is due to technical changes in the way the new cryptocurrency works.

Why did they fork?

Throughout 2017 there has been a lot of controversy in the bitcoin community on how to scale bitcoin.

To ‘scale’, in this case, means to make it faster, allowing it to process more transactions than it can today.

Well, there was a general disagreement on the best way to do this. In the end, a minority group in the bitcoin community decided to ‘fork’ bitcoin and start a new blockchain — bitcoin cash.

What’s different about bitcoin cash?

The main difference is the number of transactions that can be processed per block.

BCH allows 8MB of data per block. Compared to just 1MB with bitcoin. However, bitcoin is dealing with this issue in a different way.

What happens next?

BTC and BCH are now two separate cryptocurrencies. Each has their own valuation, their own rules, and their own developers and supporters.

BTC remains the more dominant chain and is still more highly valued than BCH. But the cryptocurrency world is very volatile, and can change fast.

So, BCH is worth keeping an eye on.

There are now more than 900 cryptocurrencies. A lot of these might fail.

In the end, the ones that survive will be the ones that offer value to users. And the ones that survive could potentially be worth many multiples of today’s value.

Related articles

Gradually, Then Suddenly — Are You Ready?

In today’s Money Morning…what a turnaround!...public opinion always wins out…politicians see the writing on the wall…and more…

A New Monetary World Order Is at Hand

In today’s Money Morning…a regime change is imminent…the mainstream always feels safer in the crowd…and more…

The Crypto Stragglers Are Even Getting on Board Now

In today’s Money Morning…digital payment processor jumps on the crypto bandwagon…the financial endgame…the world of money is changing…and more…

The Great Crypto Debate

Cryptocurrencies are one of the more divisive topics in the investing world. There’s plenty of people out there who think it’s a scam. And there’s many who think it’s the future of money.

This Is Bigger than Money…and Munger

In today’s Money Morning…truck you, Trudeau!...one step closer to authoritarianism…why bitcoin matters…and more…

Bitcoin Declared Dead!…for the 444th Time

What you’re looking at is a graph of the price of bitcoin overlayed with markers for ‘bitcoin deaths’. Basically, they just plot a point every time some article or opinion says bitcoin is going kaput.