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What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH)

Bitcoin Cash is a hard fork created during the controversial scaling debate. It decided to tackle the scaling problem in a different and more immediate way to Bitcoin by increasing the size of its blocks (the pages in the banking analogy) from 1MB to 8MB which doesn’t do anything to speed up transactions but reduces backlogs while retaining security. In order to adapt itself to the large change in computing power experienced over the first few weeks it implemented an emergency difficulty adjustment which allows it to change the block difficulty much more quickly than Bitcoin.

Consensus Method  PoW

Intended/ Current Use  Storage of Value, Currency

Risks 

  • Lower popularity compared to Bitcoin
  • Very China centric (centralized)
  • Doesn’t allow any extra functionality and shows no willingness to change this
  • The emergency difficulty adjustment may be open to abuse (we may see fluctuations of miners appearing briefly to take advantage of a lower difficulty and switching out when the difficulty changes only to switch back in when it readjusts leading to instability in block times and profitability)

Advantages

  • All the benefits of bitcoin before the hard fork with an immediately improved transaction capacity
  • Seen as a backup to Bitcoin

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