Bitcoin Cash - The other halving

And when the bitcoin halving approaches, it turns out that the bitcoin cash halving happens a few days before. Many people do not know of its existence, but it is also part of bitcoin, because before, everything was united.

Bitcoin Cash, often abbreviated as BCH, emerged as a result of a contentious hard fork frombBitcoin in August 2017. This event marked a significant moment in the history of cryptocurrency, leading to the creation of a new digital asset with its own set of principles and goals. Understanding the history of bitcoin cash, requires delving into the context of its inception, the motivations behind its creation, and its subsequent evolution in the cryptocurrency landscape.

Origins of Bitcoin Cash:

Bitcoin, the pioneering cryptocurrency, was envisioned as a decentralized digital currency, aiming to revolutionize the traditional financial system. However, as Bitcoin gained popularity, its network faced scalability issues. The limited block size of Bitcoin (1MB) resulted in slower transaction speeds and higher fees during periods of high demand.

To address these challenges, a debate emerged within the Bitcoin community regarding the best approach to scaling the network. One proposed solution was to increase the block size to accommodate more transactions per block, thereby improving scalability and reducing fees. However, another faction advocated for maintaining the status quo or implementing off-chain solutions like the Lightning Network.

The Fork:

Unable to reach a consensus, the Bitcoin community experienced a contentious hard fork on August 1, 2017, resulting in the creation of bitcoin cash. The key difference between Bitcoin and Bitcoin Cash lies in their respective block sizes. bitcoin cash increased the block size to 8MB, allowing for faster transactions and lower fees compared to Bitcoin.

The proponents of bitcoin cash argued that larger blocks were necessary to scale the network and maintain low transaction fees, thereby preserving Bitcoin's original vision as a peer-to-peer electronic cash system. This divergence in philosophy led to the creation of two distinct cryptocurrencies, each with its own community, development teams, and vision for the future of digital currency.

Adoption and Challenges:

Following its inception, bitcoin cash experienced rapid adoption and integration by various cryptocurrency exchanges and wallets. Its larger block size and lower fees initially attracted users seeking an alternative to Bitcoin's congested network. Additionally, some merchants and businesses began accepting Bitcoin Cash as a form of payment, further solidifying its position in the cryptocurrency ecosystem.

However, bitcoin cash also encountered challenges and controversies along the way. Skeptics criticized its contentious fork from Bitcoin, labeling it as an attempt to profit or undermine the original cryptocurrency. Moreover, concerns were raised regarding the centralization of Bitcoin Cash mining, as a few large mining pools controlled a significant portion of the network's hash rate.

Despite these obstacles, bitcoin cash continued to evolve, with developers working on improving its scalability, security, and usability. Various upgrades and protocol changes were implemented to enhance the network's functionality and address emerging challenges, such as the introduction of the Bitcoin Cash Network Upgrade Protocol (BCHNUP) and the Schnorr signature algorithm.

Community and Governance:

The Bitcoin Cash community is diverse and decentralized, comprising developers, miners, investors, merchants, and enthusiasts worldwide. Unlike traditional financial systems governed by centralized authorities, the governance of Bitcoin Cash is decentralized, with decisions made through consensus among stakeholders.

Community-driven initiatives and grassroots efforts play a crucial role in shaping the future of Bitcoin Cash. Discussions and debates occur on online forums, social media platforms, and dedicated community channels, reflecting the decentralized nature of the cryptocurrency ecosystem. Additionally, various development teams contribute to the ongoing development and improvement of the Bitcoin Cash protocol, ensuring its resilience and adaptability in the face of evolving challenges.

Future Prospects:

As bitcoin cash continues to mature, its future prospects remain subject to various factors, including technological advancements, regulatory developments, and market dynamics. The ongoing evolution of the cryptocurrency landscape presents both opportunities and challenges for Bitcoin Cash and its stakeholders.

Efforts to enhance scalability, privacy, and security are likely to drive further innovation within the Bitcoin Cash ecosystem. Additionally, increasing adoption and integration by merchants, businesses, and financial institutions could contribute to the mainstream acceptance and usability of bitcoin cash as a digital currency.

TA for bitcoin cash:

With the halving now at hand, estimated for around April 6, 2024.

I observe how the price of BCH has launched in recent months, in an upward trend, and it has created a slightly ascending channel (marked with two lines parallels in blue). In the past, I have also marked the bearish channel of its crypto winter.

Now?

The normal thing is that it would continue a little more within the blue channel, and then continue its theoretical upward path and try to return to the all-time highs. But consolidating the current area, as important.

This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell any asset or crypto asset. Please do your own research (DYOR) or contact your trusted financial advisor.

Jesús Sánchez-Bermejo

BELOBABA