【Currency Introduction】BCH – 8V Exchange

Bitcoin Cash (BCH) is a digital currency that was created in August 2017 as a result of a hard fork from Bitcoin, the original cryptocurrency. A hard fork is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. The split was a response to a disagreement within the Bitcoin community about how to handle increasing transaction times and costs as the currency became more popular. A group of developers proposed an increase in the block size limit of the Bitcoin blockchain, a move they believed would increase transaction speed and lower costs. However, not everyone agreed with this approach, leading to the creation of a new version of Bitcoin, called Bitcoin Cash, with an eight megabyte block size limit.

Untold History of Bitcoin Cash

The Bitcoin network, in its early days, was an incubator for innovation and the birthplace of numerous pioneering figures. Among them was Roger Ver, a zealous proponent of Bitcoin, who had earned the nickname "Bitcoin Jesus" due to his evangelistic efforts to promote Bitcoin. He was known for his unwavering belief in the power of Bitcoin as a transformative economic tool, meant to be an electronic peer-to-peer cash system.

Another figure who emerged around the same time was Jihan Wu, the co-founder of Bitmain. Bitmain grew to be a global powerhouse in the Bitcoin mining industry, producing advanced hardware that was in high demand.

Meanwhile, a separate narrative was being woven by Greg Maxwell, a Bitcoin Core developer. Maxwell, a vocal advocate for Bitcoin's original design, believed firmly in keeping the block size limited to maintain decentralization. His vision of Bitcoin emphasized the idea of it being a store of value, more like digital gold than a transactional currency.

Roger Ver (‘Bitcoin Jesus’) and Greg Maxwell (Bitcoin Core Developer)

In the backdrop of these different visions, a storm was brewing in 2017. Transaction times were increasing on the Bitcoin network, and fees were skyrocketing. The debate began to center on one key issue: the block size limit of Bitcoin. Jihan Wu, leveraging his influence in the mining industry, argued for an increase in block size. Roger Ver, advocating for the wider use of Bitcoin, supported this approach, seeing it as a means to reduce fees and improve transaction speed. On the other side, Greg Maxwell, amongst others, saw the proposal as a threat to Bitcoin's decentralization and security.

Eventually, these ideological differences led to a significant event, a hard fork, in August 2017. With significant hashing power from Bitmain, a new cryptocurrency, Bitcoin Cash, was born, aligning with Ver and Wu's vision of a Bitcoin that can handle larger transaction volumes with lower fees. It featured an increased block size limit, initially 8 MB, which was later increased to 32 MB.

The creation of Bitcoin Cash marked a pivotal moment in cryptocurrency history. The event embodied the clash of visions and the strength of decentralized systems, while highlighting the roles of influential figures like Ver, Wu, and Maxwell. Their influence and the decisions they made during this critical period helped shape the cryptocurrency landscape as we know it today.

The hard fork that resulted in the creation of Bitcoin Cash took place on August 1, 2017. Everyone who held Bitcoin at the time of the fork (at block 478558) automatically became an owner of Bitcoin Cash. Since then, Bitcoin Cash has undergone further developments, including another split in November 2018, which resulted in two different versions of the cryptocurrency: Bitcoin Cash and Bitcoin SV.

Different Features of Bitcoin Cash

BCH maintains several key features that distinguish it from Bitcoin. One of the most prominent is its block size limit, which at 8 MB (and later increased to 32 MB) is significantly larger than Bitcoin's 1 MB limit. This larger block size allows for more transactions to be processed in each block, leading to faster transaction speeds and lower transaction fees. These improvements are in line with Bitcoin Cash's mission of being a transactional currency that can be used for everyday purchases.

Moreover, Bitcoin Cash has a fixed supply limit of 21 million coins, mirroring the limit set by Bitcoin. This cap on the number of coins is intended to mimic the scarcity characteristic of physical commodities, thereby potentially making the coins more valuable over time as demand increases and supply remains limited.

The Growing BCH Community

The Bitcoin Cash community and development teams play a crucial role in the growth and direction of the cryptocurrency. With multiple independent teams of developers providing software implementations, the network is resistant to political and social attacks on protocol development. No single group or project can control it. The community also welcomes anyone interested in Bitcoin Cash, promoting unrestricted growth, global adoption, permissionless innovation, and decentralized development. For those wishing to implement changes to the Bitcoin Cash protocol, it is recommended to seek early peer-review and engage collaboratively with other developers. This decentralized approach to development ensures the long-term security and uptime of the network.

Possible Legal Tender Status for Bitcoin Cash

In an announcement that showcases the growing influence of Bitcoin Cash, the government of St. Kitts and Nevis, led by Prime Minister Terrance Drew, declared their interest in exploring the feasibility of making Bitcoin Cash legal tender by March 2023. The prime minister made the statement at the Bitcoin Cash 2022 Conference, highlighting that Bitcoin Cash mining activities are also under consideration.

The move reflects the government's recognition of the potential advantages that cryptocurrencies can bring to their economy, with Bitcoin Cash being at the forefront. Already, many businesses on the islands accept Bitcoin Cash as a payment method. However, the prime minister stressed that due diligence is necessary before making such a significant transition, in order to safeguard the country and its people.

Benefits of Bitcoin Cash as Legal Tender

St Kitts MP, Rolando Brison, outlined several benefits that could emerge from granting Bitcoin Cash legal tender status. Firstly, it would simplify the process of receiving salaries in Bitcoin Cash - a move that Brison himself plans to implement with his own salary from March. Secondly, granting legal tender status to Bitcoin Cash could pave the way for large transactions currently confined to legal currencies, potentially exempting Bitcoin Cash holdings from capital gains taxes, and simplifying accounting procedures for cryptocurrency holders. Finally, Brison views this move as a counter to the trend of Central Bank Digital Currencies (CBDCs) that many governments are currently exploring.

The initiative taken by the governments of St. Kitts and Nevis and St. Maarten signifies a growing acceptance of cryptocurrencies like Bitcoin Cash, following the path of countries like El Salvador, which declared Bitcoin as legal tender in June 2021.

BCH Utility and Adoption

Bitcoin Cash aims to serve as a peer-to-peer electronic cash system, which allows users to send money to anyone, anywhere in the world, 24 hours a day, 365 days a year. As a decentralized currency, Bitcoin Cash provides its users with full control over their funds, without the need for a traditional bank or financial institution. This feature has become increasingly important in a world where bank deposits are only as safe as political leaders decide, and banks can make mistakes, hold funds, freeze accounts, and otherwise prevent users from accessing their own money. With Bitcoin Cash, users can enjoy the sovereignty of their funds, which they can access from anywhere in the world.

In addition to serving as a transactional currency, Bitcoin Cash also offers more privacy and anonymity than traditional payment systems like bank transfers and credit card payments. It's normally impossible to know who controls a Bitcoin Cash address, offering a degree of privacy to users. However, the level of privacy depends on how Bitcoin Cash is used, and it's important for users to educate themselves thoroughly before using BCH for privacy purposes.

Another shop accepts Bitcoin Cash - Gagarin.news

Bitcoin Cash's use cases extend beyond serving as a medium of exchange. Many merchants offer discounts for paying in Bitcoin Cash, because it eliminates credit card fees and helps grow the adoption of this new payment system. Bitcoin Cash's token ecosystem allows for the storing and managing of tokens on a blockchain, offering greater transparency and integrity than traditional forms of asset accounting and trading. It also supports the creation and operation of decentralized applications (dApps) and non-fungible tokens (NFTs) through SmartBCH, a highly performant EVM & Web3 compatible sidechain.

Many Protocols have been built on top of the Bitcoin Cash blockchain due to its larger block size able to hold much more data, some of those include, Memo.cash, a Messaging and social media protocol, and CashFusion, a privacy protocol for Bitcoin Cash

The Future Path of Bitcoin Cash

As a fork of Bitcoin, Bitcoin Cash has created its own identity and purpose within the cryptocurrency sphere. Its primary focus on serving as a transactional currency, coupled with its commitment to low fees and reliable confirmations, makes it an attractive option for users who seek to use cryptocurrency for daily transactions. Furthermore, with the support of a decentralized community and development teams, as well as compatibility with emerging technologies such as DeFi and NFTs, Bitcoin Cash is poised to remain an integral part of the cryptocurrency landscape for years to come.