What is Bitcoin Cash?

On August 1, 2017, the bitcoin protocol experienced a strong ramification that divided the network in two and gave birth to "bitcoin cash."

Why does this happen and what are the consequences?
Bored with the strife and lack of progress felt in the bitcoin scale debate, and not happy with the decision to proceed with the SegWit upgrade (which will increase block capacity - but not its size - by restructuring how transaction data is stored), a group of community participants develop alternative bitcoin with characteristics different. The new version increases the block size from 1MB to 8MB.

That also excludes SegWit, which some feel is nothing more than a temporary patch for the bitcoin scaling problem. Some are also worried that the second layer network that is activated by SegWit (at the time of writing is still under development) will deflect transaction volume from the main network and reduce the interests of bitcoin.

A further difference in the bitcoin cash protocol is the difficulty adjustment mechanism. To maintain a relatively even block flow, the bitcoin protocol adjusts the difficulty factor of the hash puzzle (how difficult it is to find nonce that produces hashes in the specified parameters) every 2016 block. With bitcoin cash, difficulty adjustments are far more agile, adjusting every 600 seconds according to the amount of computing power on the network.

This provides a new protocol for the opportunity to survive. If the miner does not mine coins, the coin will decrease. With the price of bitcoin much higher than the price of bitcoin, the latter will only be profitable to mine if it is much easier to do so. In other words, the value of coins may be lower, but a miner will succeed in processing blocks more often, and collecting more bitcoin cash tokens as gifts.

Trading
Bitcoin cash can be purchased in various big name exchanges, with Bitfinex, GDAX, HitBTC, Bitstamp and Poloniex handling more than 90% of the US $ volume.

After some initial confusion, most exchanges have been completed on the BCH ticker symbol, although some still use BCC (which is also used to show Bitconnect, even more confusing).

At the time of writing, more than half the cash volume of bitcoin comes from bitcoin trading. Most of the demand from fiat currency comes from the US dollar and the South Korean won.

You can follow the bitcoin cash price movements on the CoinDesk price tracker.

Upcoming fork
On May 15, the cash bitcoin protocol will be increased through hard fork (which means that the entire network needs to activate the new version to continue participating).

This increase will further increase block size, from 8MB to 32MB, and will introduce more sophisticated smart contract capabilities and other features such as expanding timestamps, asset creation and rights management functions.

Now what?
As with all digital tokens, whether or not bitcoin money is still to be seen. However, market acceptance has increased since its launch, with several large retailers receiving payments in crypto currencies. What's more, key industry participants such as Coinbase and Circle have acknowledged that demand has exceeded their expectations. And an increase in the number of crypto hedge funds including BCH in their ownership, in response to investor demand.

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