Bitcoin cash is a type of cryptocurrency which came about in August 2017. It is a fork of Bitcoin which means that it was invented by developers who took source code from Bitcoin and started to independently develop it. It is also sometimes referred to as Bcash and is currently the fourth-largest cryptocurrency in the world in terms of market capitalization. Aside from being a cryptocurrency, it also works as a payment network. It is measured in terms of BCH tokens.
Bitcoin cash was created to address the shortcomings of Bitcoin. Its proponents argued that Satoshi Nakamoto, the man who invented Bitcoin, wanted the cryptocurrency to be mainly used in day-to-day transactions. The 2008 financial crisis and the eurozone debt crisis raised concerns about the credibility of conventional currencies like the US dollar and the euro. The cryptocurrency soon saw staggering demand and was quickly viewed more as an investment asset than a currency.
This consequently led to a surge in the price of Bitcoin. With it, came problems. The time it took to confirm transactions took longer. Not to mention, the transaction fees also trickled higher.
Bitcoin cash remedies these problems by increasing its size blocks to 8 MB and 32 MB. With Bitcoin’s 1 MB size limitation, it can handle 1,000 to 1,500 transactions. With a higher limit, Bitcoin cash is able to reduce transaction queues.
Given that Bitcoin cash is relatively new, it’s popularity has yet to gain traction. Bitcoin’s cash news about more partnerships that would allow more merchants to adopt the cryptocurrency will likely have a bullish effect on its price.
There also seems to be an inverse correlation between Bitcoin cash and its step-brother, Bitcoin. A rally in Bitcoin tends to reflect a weakening Bitcoin cash outlook.