Guide for traders

When designing Bitcoin, artificial limitations set low limits on the volume of transactions that can be processed and entered into the public chain of transactions - that is, Blockchain. The logic behind this, was to emphasize system’s safety instead of the functionality.

Especially at the beginning of Bitcoin, functionality did not seem to be a particular issue, due to the small number of users. With the gradual increase in volume of transactions, it became clear that compared to the capacity of conventional methods, Bitcoin was slow. For example, Visa, the world's most popular payment method, processes an average of over 1,600 transactions per second, with an average of 24,000. Instead, for the Bitcoin network this number is calculated at 6 -7 transactions per second, with each transaction taking 10 minutes to complete. There was a clear need for increased performance to be able to cope with the ever-increasing number of people using it.

As Bitcoin's network grows, waiting time is rising, because more transactions will take place without any change on supportive technology. As a result, more and more miners demand to increase the artificial limit (of 1MB) that is delaying the transactions, it creates barriers to the network, and increases the average transaction cost. So Bitcoin Cash (BCH) is created, which, compared to Bitcoin, where block size is limited to 1MB, each block of Bitcoin Cash Block can hold up to 8MB of data.

There may also have been other coins, Bitcoin clones of various types, but Bitcoin Cash differs in at least one important point: It copies, besides the Bitcoin code, and its Blockchain up to the point where it has launched its own separate chain.

This means, from that point on, whoever had Bitcoin, theoretically had the same amount of Bitcoin Cash, since they were in control of their private keys (and not stored in an e-wallet for example - although most platforms eventually gave their users the same amount of BCH).

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