Bitcoin Cash is seen by many crypto experts as "the real Bitcoin". Others, on the other hand, remain loyal to Bitcoin and do not see the new cryptocurrency as a better further development of the first cryptocurrency.
To understand why the new coin was launched in August In 2017 was split off from Bitcoin and what this means for the two cryptocurrencies in the future, it is necessary to understand the Bitcoin Cash mode of operation. In the following Bitcoin Cash declaration we show how cryptocurrencies work and try to answer the question which coin will prevail in the next years.
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Bitcoin and Bitcoin Cash Explanation: The similarities and differences
The emergence of Bitcoin
The Bitcoin was the first cryptocurrency and has been available since 2009. At the beginning, the bitcoins cost almost nothing, because in the end you didn't get any value for the purchase, but only a unit of a not yet established payment system.
This changed as more and more people became interested in the cryptocurrency and finally even online payments with individual providers could be carried out with it. The financial crisis also contributed to people looking for an alternative to banking-regulated payments.
The emergence of Bitcoin Cash:
Bitcoin Cash is only in the Year 2017. This is not a completely new development, but a split off from the Bitcoin blockchain. In principle, both cryptocurrencies are the same technology, although some changes have been made to the new Bitcoin Cash to make the cryptocurrency more powerful and future-proof. The maximum block size was expanded from 1 MB to 8 MB. This makes it easier to create new blocks, so that there are no long waiting times for the transactions. In addition, elements have been inserted that prevent the incorrect application of Bitcoin Cash Transaction to the blockchain of Bitcoin. Thus, it is a completely independent new cryptocurrency. For a Bitcoin Cash explanation of how it works, you should take a closer look at Bitcoin, since both cryptocurrencies work on the same principle.
Decentralized management: Why cryptocurrencies are independent and counterfeit-proof
Fiat currencies are issued and regulated by banks. This leads to the fact that they are vulnerable to manipulations, because all information is managed by central instances.
Cash can be processed using complex methods fake. Until a good forgery is noticed, the money has often changed hands several times, so that the actual fraudster can no longer be identified. But also electronic payment systems are not safe from manipulations. For example, hackers can penetrate computer systems at banks and manipulate transactions from there.
The Bitcoin Cash explanation of how this works shows that such fraud, on the other hand, with Bitcoin and Bitcoin Cash is not conceivable. Here, all information is not managed in a central system, but is stored in the blockchain itself. This is on all participating computers of the user. A hacker would therefore have to control thousands of computer systems at the same time in order to manipulate the cryptocurrencies.
All transactions will only be recognized if the majority of participants be confirmed. In order to be able to forge or manipulate Bitcoin Cash, a hacker would have to have more than 50% of the total system performance. If you look at the high number of participants, this is hardly feasible.
Bitcoin Cash is therefore independent of central instances. If one of the computers involved is hacked, the user concerned may be harmed, but the entire system is not disturbed. Bitcoin Cash is also not affected by regulations implemented by banks or the state. The value of the cryptocurrency is determined solely by supply and demand and the number of digital coins is limited from the start to 21 million.
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Bitcoin Cash functionality: All information is stored in the blockchain
The heart of Bitcoin Cash is the so-called blockchain. All transactions are recorded in this cryptographic data collection. The Coins are saved here. If you want to access a coin and want to assign it to another owner, you need a code, the so-called cryptographic key. This consists of a public and a private key, which can be used in combination to ensure that the Bitcoin changes owner.
The cryptographic keys are managed on the so-called wallet. It is a kind of virtual wallet. Beginners often wrongly assume that the coins are sent from wallet to wallet. But this is wrong, because the actual "Coins" are stored on the blockchain and do not leave it. This Bitcoin Cash functionality makes the cryptocurrency counterfeit-proof, because the information about the coin is freely accessible to the entire community. Thus, a new coin cannot simply be created and issued as genuine, because the information about it would have to be introduced into too many computers, which work independently of one another.
With the wallet only the cryptographic keys are managed. With their help, the coins can be transferred to a new owner, who then receives a new cryptographic key on his wallet.
After a transaction has been carried out these are first confirmed by the network. If the newly created block is recognized as valid by more than 50% of participants, the transaction is finally confirmed. Payments with Bitcoin and Bitcoin Cash are generally recognized by merchants as valid after a certain number of confirmations.
Is Bitcoin Cash really better than Bitcoin? Which cryptocurrency is the winner?
Both Bitcoin and Bitcoin Cash are among the leading cryptocurrencies and are based on innovative technology, which helps Banking system could be superior in the long term. Anyone who understands how Bitcoin Cash works knows that certain problems, with which the established fiat currencies have to struggle, are extremely unlikely with the two cryptocurrencies due to their structure .
Bitcoin Cash was developed to create a more powerful and better coin, which is also suitable for use by a large number of people. For this purpose, the number of possible transactions per second was accelerated, which also led to a reduction in fees. But the Bitcoin is also developing. Here, a so-called "off-chain" scaling was implemented to solve the problem of falling transaction speeds with increasing number of users.
The Bitcoin Cash is thus the newer cryptocurrency and is often referred to by its advocates as "true Bitcoin", but also the Bitcoin will be further developed and changed to meet current requirements adjusted. Which cryptocurrency will prevail depends on which users can convince. A long-term parallel existence of both currencies side by side is also possible. After all, there are over 4,000 cryptocurrencies on the market, although Bitcoin and Bitcoin Cash are among the most important: The Bitcoin has been the cryptocurrency with the highest market capitalization, the Bitcoin Cash is at 3rd place.
As investors in the development of Bitcoin Cash: We show them Possibilities
Cryptocurrencies have further gained in importance in recent years. Coins that were only a few cents or a few euros a few years ago are now traded for a lot of money. Some crypto experts expect that this development will continue and that the coins will be a revolutionary development similar to the Internet, which is before It hasn't played a major role in most people's everyday lives for 20 years and is indispensable today.
However, the value of Bitcoin Cash and other cryptocurrencies is developing not linear, but is subject to high fluctuations. Anyone who invests money in the coins should therefore also be aware that high losses are possible. No one can say today whether Bitcoin Cash will really cost a multiple of today's value or whether it will lose importance and other cryptocurrencies will prevail.
We show the possibilities today to invest in Bitcoin Cash, Bitcoin and numerous other cryptocurrencies.
Similar to the real stock exchange, major crypto exchanges can be used to buy or sell coin on the Internet at a current price. Different providers compete for the dealers. When looking for a suitable crypto exchange, of course, first of all, attention should be paid to the seriousness, because the market for cryptocurrencies is still largely unregulated. Here, among other things, our reviews on the individual providers can help.
Next, the fees should be compared, because there are also big differences. Not only the actual trading fees have to be considered, but also deposit and withdrawal fees. A comparison of the trading prices helps to identify hidden costs, because the prices for a cryptocurrency differ by up to 3% depending on the provider.
The selection of tradable cryptocurrencies also plays a role in the decision for a platform. While Bitcoin can be traded on almost every crypto exchange, lesser-known cryptocurrencies are only sold by individual providers.
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Similar to a crypto exchange, cryptocurrencies can also be bought and sold on online marketplaces. Here, however, no course specified by the provider applies, but the users themselves set offers or react to the trading offers of other participants.
With CFD- Brokers are not trading real cryptocurrencies, but customers speculate with contracts for difference (CFD) on the price development of the coins. No wallet is required for this, because the CFD is closed again directly at the broker, whereupon the customer contains the equivalent in his account currency according to the current exchange rate. However, crypto coins that could be used for payments or transactions between users are not sold by the CFD broker.
Cryptocurrencies can also be purchased directly from other people. However, it is usually necessary to meet in person for this. Transactions with cryptocurrencies can no longer be reversed, so when selling, care should be taken to ensure that payment is secured. Coins are therefore often traded for cash. On appropriate internet platforms, it is possible to display suitable exchange partners for your own region and to negotiate a price with them.
Bitcoin can now also be used speculated on the stock exchange by certificate. Investors can purchase this certificate through their regular share portfolio. It is quite possible that certificates on other cryptocurrencies will also be offered in the near future.
Summary: Bitcoin Cash is based on an innovative technology
Cryptocurrencies could do so established money system revolutionize. Bitcoin Cash is one of over 4,000 different coins with which can be paid anonymously. As a cryptocurrency with the currently third largest market capitalization, Bitcoin Cash has the potential to develop into a currency used by a by the majority.
The Bitcoin Cash functionality is based on the blockchain technology, which is also used for the Bitcoin and many other cryptocurrencies. Due to the decentralized administration, the coins are considered to be counterfeit-proof and independently. By expanding the block size, Bitcoin Cash makes a large number of Fast transactions are possible and are therefore prepared for the future even with increasing interest of the population.
To receive Bitcoin Cash, users need a so-called Wallet, to which the cryptographic key for checking the corresponding amount is sent. In the meantime, several crypto exchanges have established themselves on the Internet, on which Bitcoin Cash and other cryptocurrencies can be bought and sold again. On exchange marketplaces, users can create their own offers and thus buy and sell coins at the price they want. Trading via CFDs or certificates is also an opportunity to participate in the price development of cryptocurrency, whereby our Bitcoin Cash declaration shows that none real coins are purchased, so customers cannot use Bitcoin Cash for payments or other transactions in this case.
The rates of cryptocurrencies are very volatile. This means that a coin can be traded for a multiple of its original value within a short time. However, massive price slumps are also possible, which is why an investment should always be considered as venture capital investment. Which cryptocurrency ultimately prevails and which disappears from the market cannot be said with certainty at the moment.
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