The question of Bitcoin vs. Bitcoin Cash has dominated the crypto space for decades. In fact, it has been taunted as a war of two crypto titans. It’s worth noting, however, that Bitcoin Cash originated from Bitcoin.
Yes, the Bitcoin Cash nodes you currently own were at some point part of the Bitcoin blockchain.
Simply put, Bitcoin Cash is a fork of Bitcoin. But what is the difference between Bitcoin and Bitcoin Cash? Is Bitcoin Cash the same as Bitcoin? Will Bitcoin Cash overtake Bitcoin?
Should I buy Bitcoin or Bitcoin Cash? If these are some of the questions running through your mind, read this piece and learn BTC vs. BCH in detail.
First…What Is A Hard Fork?
Before jumping into Bitcoin vs. Bitcoin Cash, it is important for crypto investors to understand what it means to say Bitcoin Cash is a hard fork of Bitcoin.fyoutu
A hard fork is generated once the original code of a blockchain is updated, but only a few nodes on the blockchain accept it.
In the case of BCH vs. BTC, the original blockchain (Bitcoin) remains the same, and updated nodes split off from the original blockchain to create a new blockchain (such as Bitcoin Cash).
The new coins become unique and separate from the ones on the original blockchain, and this is where the discussion of Bitcoin vs. Bitcoin Cash comes from.
What if someone is holding a certain number of original coins at the time they were forked? Their Bitcoins will not be lost!
They will get the forked version of all the coins they held. For instance, if you had 25 BTC, you will receive a particular number of BCH that matches the value of 25 BCH once the BTC is forked.
Now that you understand why BCH is regarded as a fork of BTC, let’s look at Bitcoin vs. Bitcoin Cash in more detail.
Undoubtedly ‘the father’ of all cryptocurrencies, Bitcoin has been around for a decade and has gained massive popularity across the globe.
This digital currency has been adopted across all industries and can now be used to buy, sell, trade for goods and services, and more.
It was developed in 2008 by a pseudonymous person known as Satoshi Nakamoto, who published a paper discussing how the digital currency would work. In 2009, it started being traded and mined.
Bitcoin runs on Blockchain Technology and is not owned, issued, controlled, or operated by a group or entity. It is decentralized in nature, and all its transactions are verified and secured by computers that run the blockchain.
On the blockchain, every transaction is stored and submitted in blocks. Computers then verify the blocks by solving complex math problems. When problems are solved, transactions are verified, and new Bitcoins are created.
How does it work?
This cryptocurrency utilizes public key public cryptography along with innovative technology for bookkeeping, which helps achieve authorization, balance verification, delivery of assets, the prohibition of double-spending, and more. Without a private key, you cannot transact.
Every key is complex and would need highly-advanced computers and exceptionally skilled hackers to crack it. In other words, the Bitcoin blockchain is virtually impossible to hack.
As far as scarcity is concerned, Bitcoin is more scarce than gold. In total, only 21 million Bitcoins will be in existence. Once that number is reached, people will not be allowed to mine more Bitcoins.
There are about 16 million Bitcoins today, but it will be long until the count of this cryptocurrency reaches 21 million. This is because the number of Bitcoins created in one block is cut by half every four years.
The scarcity of Bitcoin simply assures investors that one Bitcoin today will be worth one Bitcoin ten or twenty years from now.
Bitcoin has a market cap of $199.62 billion and is, without a doubt, the most valuable digital currency in the crypto space.
Bitcoin Cash was incepted on August 1, 2017 – the day it was forked from Bitcoin. This means that BTC and BCH share a similar transaction history until this time.
The hard fork that led to the creation of BCH was a result of a debate in the cryptocurrency community on the subject of scalability.
This scaling problem emanated from the struggle of processing large transactions on the Bitcoin’s network. In the bid to seek a sustainable solution, the community, though in a highly divided discussion, decided to implement Bitcoin Cash.
Bitcoin Cash is based on the fact that larger transaction blocks can solve the scaling problem.
When more transactions are accommodated into one block, transactions are processed much faster. BTC’s block size is 1MB, while BCH’s block size is 32MB.
This means that BCH process transactions faster than BCH, and this is the biggest fundamental difference between these two crypto giants.
Bitcoin Vs. Bitcoin Cash: Features
There are some of the features that create a rift between Bitcoin and Bitcoin Cash. Among those we can count the following.
BCH handles more transactions per second
Throughout its existence, BTC has only been able to process 7 transactions per second.
On average, BCH can handle up to 116 transactions per second. This means that more people can use the BCH network at the same time than on the BTC network.
BCH has faster transfer times
You may need to wait for up to 10 minutes for a transaction to be verified on the BTC network.
The amount of time a transaction would take on the BCH network is not defined because it depends on the number of confirmations required from the destination address.
However, the time taken to verify every transaction is less than that of BTC.
Bitcoin Cash has fewer transfer fees
On the BTC network, a single transaction costs around $1. Previously, fees went up to as much as $25 per transaction. In Bitcoin Cash, the transfer fee per transaction is $0.25.
This means that investors save more money when using BCH than when using BTC.
BCH is cheaper to move around exchanges than BTC
When prices surge, BCH is an exceptional trading asset since it’s easier to move between exchanges. BCH is, therefore, a great investment that could easily take the place of BTC should it lose dominance someday.
These differences between BCH vs. BTC are mainly because the Bitcoin Cash block is about 32 times faster than a BTC block.
This means that Bitcoin Cash is more scalable, faster, and cheaper than Bitcoin.
1MB Vs. 32MB Blocks
One of the main differences between BTC vs. BCH is that the former uses 1MB blocks while the latter has a chain base block size of 32MB. This means that BCH blocks are big enough to process a bigger number of transactions over time than BTC.
Thanks to the small block size, Bitcoin can only handle 7 transactions per second. Every transaction can 10 or more minutes to process.
Since the Bitcoin network has grown significantly, waiting times are no longer since the number of transactions has increased without a change in the underlying technology that processes them.
BCH blocks on the other side are limited to 32MB. This means a better transaction verification speed than BTC, regardless of the number of miners supporting it. BCH is able to process more transactions per second and process them faster than the Bitcoin network.
Experts, however, warn that the faster verification time that comes with Bitcoin Cash could have downsides as well. One of the biggest potential problems that come with the larger block size is that security could be compromised.
Bitcoin vs. Bitcoin Cash: Prices
Digital currencies, including Bitcoin and Bitcoin Cash, derive their value from how they are used, demanded, and adopted. They are analyzed in terms of value growth and return on investment.
Factually, these two cryptocurrencies are holders of value. Bitcoin has held the most value for years, but we must acknowledge that BCH is gaining value and users at a commendable rate.
BCH is relatively young, and it’s still trying to realize and capture its place in the crypto world. Most experts speculate that BCH is gaining adoption fast, and it might take a significant portion of BTC’s market share sooner or later and become the dominant crypto.
The main reason why BCH is gaining value fast and proving to be a threat to BTC is that it has fixed the scaling problem in BTC and has allowed more people to use digital currency easily and at lower transaction rates.
If Bitcoin developers fail to come to a consensus and agree on the best update to its code and fix issues, then there is no doubt Bitcoin Cash will win the war between BCH vs. BTC.
So what will happen?
This simply means that people will consider using BCH as their primary store of transactional currency and value.
The BCH price hit its peak in December 2017 at $3,785. However, its value has dropped significantly, and it currently trades at $230.21. However, this slide is not unique to Bitcoin Cash, considering that all cryptocurrencies that were part of the 2017 Bullrun – including BTC have all experienced similar falls.
What might be mind-boggling for investors is that the value of BCH in Bitcoin terms has hit its all-time lows and now stands at 0.0021 BTC per BCH.
BTC’s market cap stands at $4.2 billion, while that of BTC stands at $199.62 billion. Thanks to its high scalability, BCH has maintained a vocal community of users.
However, the popularity of this digital currency as the main competitor of BTC is slowly warning, as there are lots of governance issues that have dominated the Bitcoin Cash protocol in 2020.
A group of developers recommended enforcing a 12.2% tax on every block in the BCH blockchain to fund community development.
Are BCH and Bitcoin separate cryptocurrencies?
After a divisive debate, it was decided that the Infrastructure Funding Proposal and the suggested miner tax should be scrapped.
Part of the development team has, nonetheless, decided to add an 8% tax on block rewards on the next upgrade – and this has created more division within the management of the protocol.
Apart from the issues surrounding the management of the BCH protocol, another reason that is holding BCH’s growth is the confusion most investors have between Bitcoin vs. Bitcoin Cash.
Most novice investors don’t see BCH as a separate cryptocurrency altogether. Instead, they see it as a cheaper Bitcoin with a lower entry point to the digital currency space. This is mainly because they share the same name and come from the same community and branding.
The confusion surrounding BTC vs. BCH has resulted in a negative perception towards BCH as copycat crypto aimed at baiting new investors into investing in fake BTC. However, this is far from the truth.
It’s worth noting that BCH is not fake Bitcoin. It is simply another digital currency that investors should consider without fear.
To learn other differences between Bitcoin vs. Bitcoin Cash, let’s look at the advantages and disadvantages BTCH has over BCH:
What are Bitcoin advantages over Bitcoin Cash?
Well, Bitcoin is the base currency of all other cryptocurrencies, including Bitcoin Cash. It is what other digital currencies trade against and is often tradable on almost all, if not all, exchanges.
Today, BTC is worth 57.3% of the crypto industry. What makes it different from Bitcoin Cash is that it has a huge following thanks to its popularity. Most cryptocurrency users perceive the real-world usability and liquidity of BTC as lower than that of BCH.
Disadvantages BTC has over BCH
The scalability issues facing BTC is the primary disadvantage it has over BCH. BTC is older, slower, and charges more per transaction.
Experts warn that as the crypto market grows, Bitcoin will lose its dominance over other coins, especially Bitcoin Cash.
- Bitcoin Cash was started by a group of Bitcoin developers and miners who were concerned about the scalability issues in Bitcoin and the future of this cryptocurrency.
- While BTC blocks are limited to 1MB, BCH blocks are 32MB, and this is why Bitcoin Cash processes more transactions faster than Bitcoin.
- Bitcoin Cash is not a fake Bitcoin like most people believe. It is another digital currency that seeks to solve the scalability issues that come with the Bitcoin network.
Should I buy Bitcoin or Bitcoin Cash?
Even though Bitcoin Cash seems to be superior to Bitcoin in almost every way, there is no definite answer to the digital currency you should choose over the other.
Consider your needs and use this article as a guide before making a decision.
Will Bitcoin Cash Overtake Bitcoin?
Since its inception in 2017, BCH has always been considered a direct competitor to Bitcoin. However, whether BCH will overtake BTC remains to be seen. Bitcoin has a market cap of over $199 billion, while BCH has a market cap of $4.2 billion.
Also, Bitcoin has a cult-like following across the globe and enjoys high adoption rates. If this is anything to go by, then it might take a while before BCH overtakes Bitcoin. But if this happens, we will be the first to update you!
This post provides a coveted dose of knowledge about two amazing cryptocurrencies – Bitcoin vs. Bitcoin Cash.
Both cryptos have distinct long-term goals, and their differences in block size and how they handle transaction volumes reflect those goals. It’s worth mentioning that these two digital currencies are not at war with each other.
Rather, they are two distinct cryptocurrencies that may sooner or later co-exist peacefully. Therefore, there is no better cryptocurrency to invest in between the two.
Simply determine your long-term goals and invest in the one you believe will help you achieve them. In fact, consider investing in both BTC and BCH and make the best out of them!
Just remember: it doesn’t matter which one you choose when you use Tezro app, as it allows exchanges in Bitcoin and Bitcoin Cash.
Download Tezro app now and click here to read more about Tezro features.