Among the mainstream digital currencies, the short-term performance of BCH (Bitcoin Cash) is significantly stronger than that of other currencies, which has attracted widespread attention.
In the past two weeks, it has soared from a minimum of $598 on April 6 to a high of $1,450 on April 23, becoming the strongest currency since the evening trading last Friday.
Since December last year, the digital currency market has entered a 3-month bear market. On April 6 this year, the price of BCH was even less than $600, less than one-tenth of Bitcoin.
What is BCH?
On August 1, 2017, Bitmain CEO Wu Jihan and his team led the first hard fork in Bitcoin history and created BCH. As the first "Prince" of Bitcoin (BTC), BCH is also known as the "Prince" of Bitcoin.
Since the birth of BCH, there has been constant controversy. Is BCH Bitcoin? Are BCH and Bitcoin competing or promoting each other? Will BCH replace Bitcoin? What is the value of BCH? Today, Hunting Cloud Finance tries to use simple and easy-to-understand language to analyze it for everyone.
BCH and Bitcoin have exactly the same "memory" and consensus. The blockchain data stored before the fork is compatible with all Bitcoin nodes. After the fork, new codes are executed, large blocks are packaged, and a new chain is formed.
The problem with Bitcoin is the 1MB block size limit, only seven transactions per second, transactions also take 10 minutes to process, and transaction fees are expensive.
The problem of the "emperor" cannot be changed for a while, and the role of the "Prince" can be brought into play.
BCH solves this problem.
BCH, which takes the expansion route on the chain, has deleted the segregated verification (SegWit), and can support a maximum of 8M blocks, which is more stable and secure, and can also support more transactions within a certain period of time. In terms of transactions, BCH implements a 0-confirmation mechanism, which is easier in practical applications.
Therefore, many people call Bitcoin Cash (BCH) the real Bitcoin, mainly because it is more in line with the concept of "Bitcoin" proposed by Satoshi Nakamoto and better realizes a "peer-to-peer electronic cash system".
BCH VS Bitcoin, kill the old emperor?
The real scary thing about BCH is that the miners that mine Bitcoin can also mine BCH, which greatly diverts the computing power of BTC. After the birth of BCH, many miners betrayed Bitcoin to mine BCH, resulting in massive congestion of transactions on the Bitcoin chain.
Why did the "ministers" (miners) defect? This is where the problem of algorithms comes into play.
The upper limit of Bitcoin is 21 million, and the more mined, the more difficult the algorithm will be. On the other hand, BCH adopts a dynamic difficulty adjustment mode. The production difficulty will be adjusted with the computing power of the entire BCH network. The more nodes are added, the higher the difficulty, and vice versa.
Hashrate means support rate. If supporting the "Prince Prince" is easier to get rich, why go to the old emperor to "work hard"?
From November last year to April 23 this year, the computing power of BCH has increased by nearly 5 times, while the computing power of BTC has increased by 190%. From the perspective of computing power, it is obvious that the "ministers" are more willing to support the "prince" of Bitcoin.
The surge in BCH this time, the increase in computing power is a key factor.
The reason for the soaring popularity of "Prince"
BCH price even rushed to $1,450 today, what is the reason for the surge?
According to BitInfoCharts data, the computing power of BCH has risen by 14.88% in the past 24 hours, reaching 3.015Ehash/s.
The growth of computing power represents the aspirations of the people, and this BCH wins.
The action of Antpool is also one of the positives, and by burning the profits of the mining pool, it has multiplied its support for BCH.
This BCH two wins also.
An unnamed investor in the currency circle believes that the BCH hard fork on 5.15 is also a major positive. He believes that the BCH hard fork will bring technological upgrades and provide users with better services. Just like the hard fork (difficulty algorithm adjustment) that occurred on the BCH network in November 2017, no new coins will be generated. , just to improve some problems.
He told Lieyun Finance, "In this hard fork, BCH will re-enable or activate some OP-CODEs, and one of its functions is smart contracts, which can carry more applications." He explained that Ethereum The reason why it soared to a maximum of 10,000 yuan in two years is precisely because of the use of smart contracts.
This BCH three wins also.
"Colored coins" are also an idea of the BCH community. To put it simply, it is to mark the BCH on some addresses, that is, to dye. These BCH after dyeing are collectively referred to as colored coins, and users can formulate various proofs of equity according to their needs.
If it can be realized, BCH can put countless equity certificates, commodity certificates and property rights certificates on the chain, mark it, and even issue various tokens.
This BCH four wins also.
Many merchants including Microsoft and Google support BCH payment, and more than 15,000 merchants around the world have access to BCH payment through GOcoin, a well-known digital currency payment solution provider. There are various signs that Bitcoin Cash merchants are showing explosive growth, which undoubtedly increases the confidence of Bitcoin Cash believers.
This BCH five wins also.
This means that the goal of BCH is likely not only to be a "Prince", but to achieve further technological innovation and "expand the territory" by itself.
"Prince" and "Emperor" are not in competition.
Different from the mainstream view that "one mountain cannot tolerate two tigers", Sun Zeyu believes that "the prince" and the "emperor" can promote each other. In Sun Zeyu's eyes, BCH and BTC are not competition, but complements.
He told Lieyun Finance that BCH is not competing with Bitcoin, he is complementing Bitcoin. He is an experiment of Bitcoin. If BCH goes in this direction in the future, if it goes in the right direction, Bitcoin may become better. If BCH goes right and becomes better, it replaces the current Bitcoin, but it is still Bitcoin, don’t look at it separately.
Sun Zeyu said that any kind of technology, whether it is technology or currency, is an antique if it is not innovated. Bitcoin is just a code name in history. If you do not follow the trend of technological development and make changes, you will be eliminated. Innovation is the future.
Who set the position of "Prince"?
Wang Yunjia, CEO of Beijing Fengyu Technology Co., Ltd. and the creator of the concept of "separation of securities and currency", doesn't think so. He said that Bitcoin is a chain of a single currency, and BCH has customized a new token, and the changes are not small. He expressed his doubts about the BCH smart contract virtual machine and developers to Lieyun Finance.
It seems that the crown prince position of BCH is not widely recognized.
He told Lieyun Finance that in addition to the early slump, the rise of BCH may be related to the general trend, the Syrian war, the Sino-US trade war, the stock market is in a downturn, and many people have transferred funds from the stock market to the currency in consideration of risk aversion. city.
He also believes that the rise of BCH does not rule out the possibility of someone taking advantage of the situation.
BCH is most likely to become a "new emperor" in the future
At present, there is indeed a series of good news for BCH, and it is expected to counterattack. From the perspective of qualifications, it is most likely to become a "new emperor" in the future. If the performance of the hard fork can be greatly improved, its "Prince" will be stable. Sitting is fine.
If he wants to "become the throne", the "crown prince" should still have a long way to go.