Bitcoin Cash vs Bitcoin, what is the difference between the BTC and the BCH?
Bitcoin is the most popular and has the most trading pairs with other cryptocurrencies, BCH can become the main tool for transactions & moving money around as more users adopt it, BTC can continue to be used as a store of value that is considered the gold of digital currency, Both stand to grow in value and adoption over time, making them worthy investments for any investor to look into and consider.
Bitcoin Cash – BCH
Bitcoin Cash (BCH) was created in 2017 as a result of a hard fork in Bitcoin’s Blockchain, the independent digital ledger that is used to record and verify every Bitcoin transaction, When a cryptocurrency forks and its blockchain split, two new chains of information are created resulting in two separate versions of the cryptocurrency, This can happen when there is not a majority consensus within the community over the direction of the cryptocurrency.
The hard fork that created Bitcoin Cash was a result of concerns over the block limit size and processing time of Bitcoin’s original design, The new currency promised faster processing time and more flexibility for users.
Increasing of transaction`s speed in several times, The main feature of BCH is an increased block`s size to 8 MB, On May 15, 2018, developers released the update, after which the block`s size increased to 32 MB, This solution made it possible to record much more transactions in one block, and thereby to increase network bandwidth.
Low commissions, Bitcoin Cash has very small commissions $0,05 – $0,010, which is lower than that of the “older brother” $8 – $15, With the current network load, The queue of unconfirmed transactions does not exceed 200 – 250, While with the original Bitcoin, this number can reach 7,000 – 10,000.
Its development team is quick to implement solutions that make the blockchain more scalable, which gives it great future potential for adoption & use, It is also cheaper to move around between exchanges, Whenever its price surges, it is a great trading asset against Bitcoin and a solid investment to hedge against Bitcoin, should Bitcoin lose its market dominance one day.
Bitcoin Cash vs Bitcoin
Bitcoin is the biggest cryptocurrency in the world, the price of Bitcoin will increase steadily in the next few years, the increase in Bitcoin’s value may have stemmed from the removal of Segwith2X fork, In August 2017, Bitcoin was split using a process called “Hard Fork”, which created a new version of Bitcoin called Bitcoin Cash, Bitcoin Cash uses the same codebase.
If you’re a fan of Bitcoin then you’ll love Bitcoin Cash, Essentially the same but better in some respects, BCH has all the makings of a world-class cryptocurrency when you combine that with fairly affordable prices and its potential in the eCommerce space, it’s certainly crypto worth considering.
While BCH and BTC share many similarities, they’re also different, Despite being the most valuable cryptocurrency, some Bitcoin developers were unhappy with the state of the project, With other blockchains such as Litecoin (LTC) able to process transactions cheaper & more efficiently, many thought that a change was necessary.
Bitcoin has lots of mining pools, so no one is strong enough and the situation where a single miner has a majority of 51% to rule them all is quite impossible, Bitcoin Cash is highly centralized, Right now we already have 3 mining pools that make more than 51% together, This can be a dangerous situation because the future of the currency becomes too reliant on these three.
Bitcoin Cash added protection adjustments to close these gaps and make the new currency safer for all to use, Bitcoin Cash uses a different hash algorithm to the one Bitcoin uses, So, the replay between the two chains is no longer possible.
Bitcoin Cash’s technology allows for an increase in the number of blocks, Bitcoin Cash has a different transaction signature to verify its distinction from Bitcoin, The main benefit of Bitcoin Cash is that it is cheaper and faster to use, This is because it is more scalable, meaning that more people can transact on the blockchain at any given time.
Bitcoin Cash supports EDA, Emergency Difficulty Adjustment (EDA) is a new algorithm which ensures normal chain work in case of dramatic changes in the number of miners, This provides additional stability to the currency as a whole, Cryptocurrencies like Bitcoin or Bitcoin Cash derive their value from how much they are adopted, used and demanded, We can analyze them in terms of ROI (return on investment) and value growth.
The scalability issues that Bitcoin was facing were one of the crucial hindrances for the network, Bitcoin Cash’s main aim was to rectify that through an increase of the block size, Currently, it is 32MB which allows for up to roughly 200 transactions per second depending on the traffic & amount of funds being transferred.
Bitcoin Cash is cheaper than BTC, One of the things holding BCH’s rapid growth back is the confusion that people have between Bitcoin & Bitcoin Cash, Many new investors see Bitcoin Cash as a cheaper Bitcoin with a lower entry point to the market, This is because they share very similar names and come from the same branding & community.
Bitcoin Disadvantages Over Bitcoin Cash
Bitcoin is still prone to get hacked, It is aware that hackers target their website every day and they are working on improving their defenses but there is still no guarantee that your account will not be stolen in the future, The price may fluctuate wildly, The price may be on its all-time high today but tomorrow is going to be a different story, You need time when you are going to sell to be sure about what you are going to get.
The disadvantages of Bitcoin when compared to Bitcoin Cash mainly regard the scalability issues facing Bitcoin, Bitcoin is older, slower and costs a lot more per transaction, Bitcoin will continue to lose its dominance to these other coins.
Another disadvantage is that the core development team of Bitcoin is not united as good as other crypto teams, like that of Ether, They appear to be divided as a group and lacking clear leadership, This makes the implementation of scaling solutions more difficult to agree on and implement to the network.