What happens when you send Bitcoin (BTC) to a Bitcoin Cash (BCH, also known as BCC) address?
Bitcoin Cash (BCH) is a decentralized digital currency created as an alternative to the original Bitcoin protocol. After its fork in August 2017, several new cryptocurrencies emerged, including Bitcoin Cash (BCH), Bitcoin Cash Classic (BCHC), and others. In this article, we will examine what happens when you send Bitcoin (BTC) to a BCH address after the fork on August 1.
The Fork: August 1, 2017
On August 1, 2017, the Bitcoin network underwent a major change with the introduction of the Segregated Witness (SegWit) protocol. This led to a significant increase in block size and processing fees, making it more expensive and time-consuming for miners to validate transactions.
To solve this problem, a group of developers created a new cryptocurrency called Bitcoin Cash (BCH). The main goal was to create an alternative that would allow the network to scale while maintaining its decentralized nature. BCH has faster block times, lower transaction fees, and better security features compared to Bitcoin.
Sending BTC to a BCH Address
If you try to send Bitcoin (BTC) to a Bitcoin Cash address after the August 1st fork, several things can happen:
- Receiving BCH: If your Bitcoin wallet contains funds that can be converted to Bitcoin Cash, you will receive the equivalent amount of BCH.
- Conversion Fee
: Depending on the exchange or platform you use, there may be a conversion fee for the transaction. This fee is usually paid in Bitcoin (BTC) and reduces the amount of BCH you receive.
- Transfer to BCH address
: After processing the conversion fee, your funds will be transferred directly to the recipient’s BCH address.
Returning BTC if sent to BCH
If someone sends Bitcoin (BTC) to a Bitcoin Cash address after the August 1st fork and realizes they made a mistake, there are several possible solutions:
- Contacting the sender: Contact the person who sent you the BCH and explain the situation. They may be willing to resend your BTC or refund the amount.
- Use a cryptocurrency exchange: You can use a cryptocurrency exchange like Coinbase, Binance, or Kraken to transfer your BTC back to your main wallet.
- Rebuy on Bitcoin Cash Market: If you believe that the price of BCH will rise in the future, you may be able to buy it back at a lower price and sell it later for a profit.
In summary, if you send Bitcoin (BTC) to a Bitcoin Cash address after the August 1st fork, there are a number of possible outcomes. While some may receive BCH or get their funds back, others may lose investment opportunities or be charged unnecessary fees.