Bitcoin: the Regina George of cryptocurrency.
To understand Bitcoin cash, it helps to first understand what problem it was trying to solve: scaling Bitcoin. To put things simply, Bitcoin transactions take a while to process on the blockchain. The more transactions there are, the more time each transaction will take. So as Bitcoin grows in popularity, so does the transaction time. It’s like a theme park getting more and more popular, with lines for rides getting longer and longer.
Bitcoin cash was created to try to solve this problem. But they were not the first to tackle this problem. There was a vote held, in which 80-90% of mining pools agreed to incorporate a technology called SegWit2x into Bitcoin, which makes the blocks on the blockchain smaller and more manageable to process.
But of course, there were dissenters, and the whole point of blockchain technology is decentralization. The dissenters thought SegWit2x was a crappy Band-Aid to a growing problem, and had issues with transparency, which is kinda important for blockchain tech. So some Bitcoin miners and developers decided to make their own solution: Bitcoin cash.
Bitcoin cash is a break-off from Bitcoin, so it’s actually its own currency, trying to be the new cool kid on the block. Bitcoin cash tackles the problem of transaction speed and scalability by making the blocks bigger. However, critics say there could be some security issues with Bitcoin cash. You can’t win 'em all.
Related or Semi-related Video
Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
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