What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency, or digital money. A revolutionary invention as important as the internet. Bitcoin Cash can be used to buy/sell anything just like the USD. Bitcoin Cash is a global trusted computing network to transfer money/value.
What is Mining?
Mining is how Bitcoin Cash (out of the possible 21 million) come into existence on a set schedule. People run specialized hardware that solves very difficult calculations that keep the network secure.
This process is required so that no one can cheat like trying to spend the same funds twice. All miners race to try to "solve" the equation so that they can win the reward, which is currently 12.5 Bitcoin Cash. There is a random winner awarded roughly every 10 minutes. All the transactions that took place in those 10 minutes get cemented into the Bitcoin Cash database, or more commonly referred to as the Blockchain.
We know this is safe because it is very very expensive to try to attack the Bitcoin network. The incentives have proven to work since 2009 and demonstrate it is more profitable to play by the rules than to try to attack the network.
Why is Bitcoin Cash valuable?
It is the combination of scarcity and utility that makes crypto valuable. There will only ever be 21 million coins total and the user experience for sending cryptocurrency instantly is much better than dealing with banks. Crypto is to banking as Email is to the post office. Disruptive technologies are too important to ignore.
Why should I care to get some?
Finance is not taught, but it's super important to understand. Bitcoin Cash promotes savings over spending, which causes people to become a bit more disciplined and financially conscious. There are going to be many use-cases that were not possible before with old money. Owning some Bitcoin Cash acts as your ticket into this future economy. Many industries will be disrupted and long term holders are likely to see healthy gains in their wealth.
It's important to know you can own a fraction of Bitcoin Cash . They are divisible down to 8 digits and it is not a requirement to buy 1 full coin.
if you're a business owner
- Credit card merchant services cost you 3%. Customers can can also file a chargeback up to 30 days later.
- Bitcoin Cash fees are under $0.01 and merchant services like BitPay are closer to 1%.
- Settlement happens in 10 minutes versus days or weeks or months like with visa/mastercard.
- No expensive POS system required.
- No paypal-like authority can freeze your account or take your funds.
If you're a regular person
- Your bitcoin cash can never be seized or taken from you.
- Buying things online offers way more privacy with Bitcoin Cash. There are no statements with everything listed like credit cards.
- There is no central bank or government who can freeze your account or take your money.
- It's accessible anywhere in the world.
- As long as there is inflation, your crypto wealth is likely to increase.
- It's valuable and a great store of value.
- It's cheaper to transact with.
- It's a hedge against inflation so your hard earned money doesn't lose value.
If you're an investor
- "in order to dominate a market, it is necessary to create something 10x better than what currently exists."
- Cryptocurrency has satisfied this requirement over traditional money.
- Bitcoin Cash aims to be the financial backbone of the Internet. That is potentially 5 billion users (not including children) transacting in crypto.
- As an early adopter, you'd be able to "buy in" at a "cheap" price as utility is added and the ecosystem matures.
- Bitcoin Cash is a safe long term bet.
If you're a developer
- Programmable money is a dream to work with compared to credit cards.
- There is less friction, and no lengthy business forms or regulatory compliance to deal with.
- There's an open source community, so it's accessible to anyone for free.
- Cryptocurrency enables innovation such as microtransactions that are not possible with traditional methods.
If you're young
- It's useful because they can transact without having to have a credit card.
- Can be a source of income for those who may not have access to banking yet.
- Everyone has access to and can participate in the crypto economy.
What problem does cryptocurrency solve?
In the white paper, it is described as a "free open source peer-to-peer electronic cash system that is completely decentralized". This means being able to send money to anyone for cheap without a middleman being able to tell you no.
We have a permissionless way of accessing data called the internet. We needed a form of money that cannot be corrupted or controlled by bankers and politicians. By removing human manipulation from the equation, we have money that makes sense, is fair, censorship resistant, and reliable.
What should I be concerned about?
As it is still relatively early, the ecosystem is not as mature yet and arguably not mainstream ready.
The everyday user may still be overwhelmed or intimidated by this technology, but this continually improves over time.
Merchant adoption is increasing all the time, but there is a limited number of places to spend your crypto in retail locations at the moment.
The market value is likely to fluctuate in price very often until the ecosystem is much more mature. This may take years, but the overall trend is upwards in the long term compared to inflationary fiat currencies.
There are some people who are very threatened by Bitcoin Cash and seek to discredit it as much as possible.
Who created Bitcoin Cash?
Satoshi Nakamoto is the pseudonym for the creator of bitcoin. Satoshi was likely a small group of individuals who each brought something to the table in order to make Bitcoin work. The original Bitcoin reached capacity many years ago and stopped functioning as originally intended. The situation was like google saying we have served X amount of searches today, sorry you can't use google. Except instead of google, it was a small group of well funded developers who wanted bitcoin to go in a different direction than Satoshi did.
Years of debate went by and no progress was made towards fixing Bitcoin. Many people began to lose hope that things would ever get better. A lot of developer talent and startup potential moved onto altcoins instead. Transactions were backlogged and fees rose to several dollars and priced many people out of using Bitcoin. The same developer team introduced the most radical change to Bitcoin to date which would fundamentally change the code forever. In order to preserve the proven track record of the way Satoshi envisioned Bitcoin to be, Bitcoin Cash was created. You can read the longer history here.
How do I get some Bitcoin Cash?
This site contains a Bitcoin Cash Faucet which can send you a small amount of Bitcoin Cash for free. No strings attached. All you need is a wallet to start receiving cryptocurrency.
The more common methods of obtaining Bitcoin Cash involve exchanges like Shapeshift, or Kraken. An exchange is a company that provides a platform to trade one currency for cryptocurrency, or vice versa. Read more on the Resources page.