Hello, in this lesson we are going to talk about Bitcoin cash and how it differs to Bitcoin. The first thing that might come to your mind is it's a cash equivalent of Bitcoin, how you have cash notes for great British pounds for for the US dollar for repeat for repeat and various other currencies around the world. It's exactly the same. Unfortunately, it is not that is not what Bitcoin cashes it is not a cash equivalent, that is incorrect It is actually a new cryptocurrency. So, just like there are several other cryptocurrencies in my share its name with Bitcoin, but it is not the same or not in its entirety. So let's just go over some history, some more specific history of Bitcoin.

I will understand why this new currency was even created. So in mid July 2017 companies and mining pools and mining pools that totaled over 80% of the Bitcoin computing power they voted to implement a technology within Bitcoin, a technology called Kord segregated Witness, or you might see commonly referred to as seg wit to exe for the remainder of this video, I will refer to it as seg wit to x and segwit to x, it makes the block size smaller. And it actually achieved this by removing removing signature data and it's sometimes is as effective as removing 65% of the size of the blog. As you can imagine, that has huge implications on the app. Or overall foundation of the currency. So it's something worth considering.

And you might be thinking, but Okay, this is great. There's always new stuff they can add. But why were people even thinking about adding this and it was regarding gay ability, scale and scale ability of the current platform. Because as more users were adopting it, they had to make sure it could scale they couldn't, they had to make sure it could handle more transactions, more users more concurrent load. Because if it can't, no matter how good the overall system is, if you can't handle 1,000,002 million, or even a billion plus users, essentially the entire world, it won't be able to replace the current banking system we have. So it's all about scaling the current platform, so Regarding that aspect make it smaller.

Definitely will help. And what happened was on the first of August 2017, some developers and miners so some developers and miners created they created a hard Fork of the current Bitcoin and I can guess that you know what this new hard fork was code for you Don't let me give you a clue. This resulted in a new crypto currency and it was called Bitcoin cash. You might be thinking what is a hard fork? I've got a separate video covering that. But the essence is there's two types of forks, hard forks and soft forks.

Soft fork is like updating a piece of software. And a hard fork is essentially getting the current piece of software and modifying it and distributing it as a new piece of software. That happens all the time within the open source community. forking is actually a legit term within open source. If you go on GitHub, there's actually an actual button where you can fork a code repository. So a hard fork in this case created a whole new cryptocurrency so that's all well and good, but why did they create a whole new cryptocurrency for talking about scaling would segway to x not have sold the issues and though It would have helped the ultimate reason that people didn't believe that segway to X would work or the reason they created a whole new fork was people believed people believed that sag were two acts did not fundamentally one mentally.

So, the problem of scalability, it just mainly patched it up. So they wanted a bearer solution hence why they went down the route of a hard fork and what they did They increased the, the block size to eight megabytes to overcome this. And that has helped since because before that the actual size of a block was one megabyte with the potential for it to go up to two. And I've got a separate video that covers segue to x and all of the nuances around this and what it actually means for the daily run into transactions. So feel free to check out that video for more in depth analysis. So I'm getting the next question that you have is which one is running and as of 2017 While I should say as of October 2017 when I'm actually recording this video Bitcoin is still running and I have a price of FIFO than $819 as of now Bitcoin cash is still running and this has a price of $314 am I thinking okay Bitcoin as a higher price just by that one.

Obviously with Bitcoin cash you get more coins. You're ultimately as a boy after think after research which one do you think has more longevity? Which one you think or allow you to that they buy and sell it at certain prices so you can make a profit so there's no one that you should buy over the other even though the regular Bitcoin is the more popular one bitcoin cash could overtake it like said Bitcoin is as of 2017 the largest cryptocurrency by far, but the market is in its early days, so Only time will tell which one will ultimately succeed. So, the last thing I'm going to cover is what happens to current Bitcoin users so happens to they get the new coin, do they just keep the old coin? Do they get no coins? Well, if you have your own wallet, then you can choose.

So your own wallet allows you to choose but if you're women exchange and exchange will ultimately decide for you. As of now, I think they will ultimately decide for Bitcoin because I think Mike's got more longevity. But Locke said it's early days and that could change. So that's it for comparing Bitcoin cash and Bitcoin actually one last thing I want to do have you know, Bitcoin, the shorthand version is BTC. So that is Bitcoin in my thinking the Bitcoin cash have a shorthand version and it does it bch or referred to as BTC. These are the two terms there are used to refer to Bitcoin cash.

So that's it for this video. If you have any questions, feel free to reach out, feel free to go The video again and look at some of the concepts that we covered. And as usual, thanks for watching and I look forward to seeing you in my next lesson.