Bitcoin Cash has originated from Bitcoin itself. It was started by the developers keeping in mind the future of cryptocurrency and its ability to scale effectively. In the year 2017, the Bitcoin miners split Bitcoin through a process called “Hard ForK,” creating a new version of bitcoin called Bitcoin Cash. It has the block size limit of 8Mb which is the increased limit of transactions. This means that through Bitcoin cash, two million transactions can be processed per day. Thus, Bitcoin cash was developed to evolve Bitcoin effectively over time. Apparently, the creators had thought that Bitcoin has a future to become a new form of cash.
Talking about Bitcoin, it is known as the first cryptocurrency which can be used to buy or sell goods or services or make tradings. Bitcoin is not controlled by any government or bank. Thus, it can be independently used by its owners. It works as pair-to-pair on the blockchain which is decentralized. Its realistic maximum blocksize is of 2 megabytes which converts to 7 transactions per second. These transactions take about 7 minutes to execute.
These are now two different currencies because the two have different algorithms. The cash cannot be sent to bitcoin addresses and does the bitcoin cannot be sent to bitcoin cash’s address. So, the two are not interchangeable. There are some major differences between the two. Let’s look at them.
The key differences between Bitcoin Cash and Bitcoin
- A single miner cannot completely rule over bitcoin, i.e. it has a lot of mining pools. On the contrary, it is centralized.
- In order to distinguish bitcoin cash from bitcoin, the two require different transaction signature.
- While it has a greater block size, Bitcoin operates on the approach of a second-layer solution.
- It is safer to use in comparison to Bitcoin. It even has additional stability as its new algorithm normal chain work even in the case of the number of miners.
- Bitcoin Cash’s transfer fee is lesser than that of Bitcoin’s transfer fees. BCH’s transfer fees are about around $1 USD per transaction.
- BCH is still not very popular among miners. This is because the cost of mining Bitcoin Cash is almost as same as Bitcoin mining. So, the mining of Bitcoin Cash is less profitable than that of Bitcoin. Thus, the reason it is yet to become the first choice of the miners.
- Bitcoin acts as the base currency for the entire sector. This is because most of the other cryptocurrencies trade against it and it is easily tradable on various platforms.
While Bitcoin is already a dominant cryptocurrency in the market, Bitcoin cash is still at the stage of capturing the market. However, the traits like Bitcoin Cash’s more scalability, cheaper transaction fee, and faster to use properties reflect that in the near future, Bitcoin Cash might have a better potential for adoption and use. The day its price would rise, it would become a better trading asset in comparison to bitcoin. It is quite a possibility that owing to the rising popularity of Bitcoin Cash, Bitcoin might lose its market dominance someday.
However, as of now, Buy Bitcoin is still the most adopted cryptocurrency. This is because it is recognized as the original cryptocurrency. People do prefer to invest in bitcoins to claim their investment benefits.
What do you prefer to use? Have you ever made the use of Bitcoin Cash? Comment below.