Bitcoin Cash (BCH) Profile

Bitcoin Cash Token Profile (PDF)

Bitcoin Cash was the result of a forceful split of the Bitcoin network, an event referred to as a hard fork. As Bitcoin gained traction, the network could not handle the number of transactions demanded by users, which resulted in lengthy delays that could only be bypassed by paying higher fees. This is what led to the Block Size Debate, an ongoing discussion about the trade-offs related to increasing Bitcoin’s block size in order for more transactions to be allocated into one block. Since mining bitcoin is a capital-intensive activity, miners want to maximize the number of transactions on a per block basis to increase their level of profitability from transaction fees. The easiest way to achieve this is by increasing Bitcoin’s block size, which has been 1MB since the coin’s inception. In April 2017, mining hardware manufacturer Bitmain was the first to suggest a hard fork and the idea for Bitcoin Cash begun getting support. In the following month, the Bitcoin ABC Project (Adjustable Block Cap) announced it was developing a full node implementation of the Bitcoin protocol that would be compatible with Bitcoin Cash. The project’s goal was to support a version of Bitcoin that rejects SegWit and increases the block limit to 8MB. The fork occurred on August 1, 2017, and the first Bitcoin Cash block was mined 6 hours after Bitcoin block 478558 by ViaBCT, a Chinese digital token exchange and mining pool. On December 19, GDAX launched Bitcoin Cash trading, but halted trading for about a day after the price exceeded $9,500 on the exchange, when it was $3,500 on other exchanges. This has led to an internal investigation by and a lawsuit against Coinbase for potential insider trading.