Should You Invest In Bitcoin Cash?

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4,817,045 Bitcoin Cash positions opened on eToro

Between 2016 and 2017, Bitcoin became increasingly unreliable and expensive as the community struggled to determine the network’s capacity. A percentage of the community decided to increase the maximum block size of the network, leading to the creation of Bitcoin Cash.

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How does Bitcoin Cash work?

If you are familiar with the original Bitcoin (BTC), you will recognize its blockchain technology. Built with a Proof of Work (PoW) consensus algorithm, users can participate in the network and verify transactions quickly and securely.

Blockchain

The Bitcoin Cash protocol finds, verifies, and validates transactions through a system of distributed collaboration, meaning there is no need for a central authority.

Bitcoin Cash miners receive rewards in exchange for dedicating resources to the network to help secure it.

Transactions

There are three main steps required for those interested in making payments with Bitcoin Cash (BCH):

  1. Opening an account
  2. Buying Bitcoin Cash (BCH)
  3. Sending BCH to other individuals or merchants

When making transactions with Bitcoin Cash, users have granular control over how quickly a block should be confirmed, alongside any additional information relevant to the transaction, such as donation requests or memos providing further context to the transaction.

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