Bitcoin Cash Review 2020
What Is Bitcoin Cash?
Bitcoin Cash (BCH) is an upgraded version of the Bitcoin Core software. It was released on August 1st, 2017, when BCH hard forked from Bitcoin. The technical difference between the original Bitcoin software and the one of Bitcoin Cash is an increase of the block size limit to 8mb. This effectively allows miners on the BCH chain to process more payments per second. It also allows faster, cheaper transactions and much smoother user experience. Bitcoin Cash was created to bring back the essential qualities of money present in the original Bitcoin software. Over the years, these qualities were filtered out of Bitcoin Core and progress was stifled by various people, organizations, and companies involved in Bitcoin protocol development. You can learn more about Bitcoin Cash hard fork from Bitcoin here.
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How To Mine Bitcoin Cash?
If you’re someone who feels BTC has a promising future, you can support the network and even make a profit while at it. A nice way to do that is mining - a process of solving complex mathematical puzzles in order to verify the transactions, put them in blocks, and add these blocks to the blockchain. You need advanced computers that are suitable for mining. The first step in mining Bitcoin Cash would be making an investment in specialized mining equipment. Whether or not you make profits depends on some other factors so simply investing in the best mining equipment doesn’t directly transfer into making profits. You should use a profitability calculator to check how much profits you would make. To use this calculator, you’d need to know your computer’s hash rate (the speed at which your equipment can compute a hash function). The larger the hash rate, the more chances you will have of mining a block. Hardware and electricity costs will be calculated too.
After calculating your returns and expenditure, if the profits are favorable for you, you can start mining. First things first, you will need to create a Bitcoin Cash wallet to receive your mining rewards. It is extremely vital that you make sure to backup your wallet.dat file to a separate device, or print out a copy and keep it in a secure location. It would be bad if your device gets stolen or it crashes and you can’t get your funds back. After creating your wallet, you’ll have to make a decision on whether you want to be a lone wolf or move in a pack. That means you have to choose between mining on your own or joining a mining pool. A mining pool is a group of miners who put together their computing power in order to increase their chances of solving a puzzle. If you decide to choose a pool, you will have to consider multiple factors. Those include: the mining pool’s payout structure, the size of the mining pool, how often they find blocks stats, and what fees they charge.
If you choose to mine alone, there will be no need to split your rewards with anybody but it comes with a following disadvantage. In order to stand a chance of solving a block, you’ll need an extremely powerful mining rig which requires a lot of electricity and a lot of money to acquire. Once you’ve made this decision, you’re ready to connect your mining equipment and plug that into your computer and start mining. But, in order to be able to control and monitor your mining rig, you will need a mining software client to run on your computer. The right software will depend on your operating system and the actual mining rig you have. Once you’ve configured the software, you’ll start mining coins. If you’re mining on your own, after solving a block, the reward will appear in the connected wallet. If you choose a pool, after the pool solves a block, your share of the reward will be sent to your wallet.
Although Bitcoin Cash got forked from Bitcoin, don’t be surprised to hear about BTC vs BCH discussions because some people feel Bitcoin Cash will outlast Bitcoin. Both have similar mining mechanisms with one or two crucial differences. The first difference between Bitcoin and Bitcoin Cash is the block size limit. That of Bitcoin Cash is 8 MB, while that of Bitcoin is just 1 MB. Of course, the bigger blocks will require more computing power and, by extension, more investment in order to be mined. On the other hand, bigger blocks contain more transaction fees for the miner to collect. If you’d prefer to buy Bitcoin Cash instead of or in addition to mining, here’s how.
Where To Buy Bitcoin Cash?
Here are the three best places you can buy BCH instantly with your credit card
Coinbase is an easy way to buy Bitcoin Cash with a credit card or debit card instantly. The best locations to use them from would be across Europe, the USA, Canada, and the UK. The signup process is fast and they have an easily maneuverable website. Coinbase is one of the most popular and trusted cryptocurrency exchanges. The fees will amount to 3.75% and you can buy instantly. Its BCH-Crypto trading pair is BCH/BTC.
CEX.io is a worldwide cryptocurrency exchange that works in almost all countries. You can also buy other coins such as Bitcoin, Litecoin, Ripple, DASH, and a couple more. The countries where you cannot buy BCH with a credit card are Iceland, Bahrain, Vietnam, Afghanistan, Algeria, Iraq, Kuwait, Lebanon, Libya, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, and Yemen. CEX.io also has a BCH-Crypto trading pair of BCH/BTC.
ChangeNOW is an instant non-custodial limitless cryptocurrency exchange service that works without registration and limits. With us, you can buy over 350 currencies including BCH with the best exchange rates available on the market. No registration is needed, and no hidden fees included in the exchange. And of course, your safety is a priority for us.
What Is The Best Bitcoin Cash Wallet?
Before buying Bitcoin Cash, you should be sure that you have a safe place to store the coins. There are desktop, paper, mobile, and hardware wallets. The following list is based on user reviews and other factors. So here are the 3 best Bitcoin Cash wallets.
Ledger Nano S - a hardware wallet
One of the most secure ways to store your Bitcoin is a hardware wallet like Ledger Nano S. This wallet saves your private keys offline on a device thereby making your wallet immune to hacking.
- Ledger Nano S supports a vast variety of coins
- Integrated with a large number of software wallets
- It has an unsuspicious look since it resembles a simple pen-drive. Plus, it is pretty lightweight, so can be easily carried around.
- The recovery sheet can be stolen or replicated if enough care isn’t taken.
Trezor One - a hardware wallet
Trezor One offers everything needed to protect cryptocurrency funds together with advanced features like Password manager or U2F two-factor authorization.
- Never exposes your private key
- Can be used on all devices provided the platforms are compatible (Windows, Mac OS X or Linux)
- Very sleek design
- It doesn’t have an inconspicuous look
Coinomi is a security-first, multi-chain wallet for both mobile & desktop that provides native support and true ownership for more than 125 blockchains.
- High security features e.g. HD algorithms and IP masking
- Private keys stored on users’ mobile devices
- Does not charge any fees
- Not regulated
- Code is not open source
Benefits of BCH
- Centralized banks can make mistakes, hold funds, freeze accounts, and otherwise prevent you from accessing your own money. Traditional financial institutions can also decide to block your transactions, charge you with big fees, or close your account without warning. Bitcoin Cash gives you full, sovereign control over your funds, which you can access from anywhere in the world.
- The Bitcoin Cash protocol ensures there will never be more than 21 million coins in existence. Bitcoin Cash has a fixed supply that could guarantee its value.
- Bitcoin Cash is permissionless, open network, and decentra. It gives you the power to engage with your fellow people without intrusion. It's decentralized.
Disadvantages Of BCH
- A major disadvantage of BCH is the automatic adjustment of the network`s computing complexity.
Bitcoin Cash Review
Bitcoin Cash is a project with huge ambitions, its ultimate goal is to push Bitcoin from first place. BCH has fewer problems with scaling, and also can boast of low transaction commissions unlike BTC. But on the other hand, there is a constant disagreement between developers, still unsolved problems of automatic control of complexity, as well as increased volatility in the market. Now it is hard to make long-term predictions for Bitcoin Cash, as it is not clear yet, which currency will have the most stability - BTC or BCH. To learn more about current and future Bitcoin Cash price, check out this article we’ve also prepared for you.