Difference Between Bitcoin and Bitcoin Cash
Difference Between Bitcoin and Bitcoin Cash
Bitcoin vs Bitcoin Cash- a war between two crypto goliath. The one difference between Bitcoin and Bitcoin Cash is that Bitcoin Cash is a fork of Bitcoin. Bitcoin Cash nodes were part of Bitcoin blockchain. It was originated from Bitcoin. Bitcoin and Bitcoin Cash forked in 2017 and it made long-lasting effects. Here we will describe how BTC and BCH are different and why the fork happened. In 2017, the Bitcoin Blockchain encountered an event called ‘hard fork’. Technologically, this term is generally used to refer to an upgrade or change in the protocol. To this several opposing groups disagree on how to proceed with the development of Bitcoin.
This led to two opposing parties- One group incorporated mainly a large group of Bitcoin miners and other group was composed of Bitcoin user community and Bitcoin core developers. The two groups were disagreed on how Bitcoin should proportionate its protocol. The miners demanded Bitcoin to use bigger blocks, to allow more transactions to be fitted into each block that is being mined.
Bitcoin cash :
The Bitcoin users and developers demanded to implement Segregated Witness, this upgrade could compress transaction data, to fit more transaction to be fitted in each block. They wanted to implement the same goal but no one was willing to compromise to get the desired result. The reason being Bitcoin forked into two different crypto-currencies, each sharing common transaction history. Bitcoin cash supporters wanted larger blocks and regular Bitcoin supported by developers by compressing the transaction.
What is Fork?
As there are few Bitcoin forks exist but no other is well known as Bitcoin Cash. A fork is implemented when the blockchain's original code is updated but some accept the update. The Bitcoin, the original blockchain, remains same but updated nodes split off to original blockchain and the new blockchain is created that is called Bitcoin Cash and the new coins on the blockchain segregate from original blockchain. A forked version of bitcoin happen, the original coin holder will automatically get the forked version of the coin. When Bitcoin Cash forked from Bitcoin someone holding 10 BTC would automatically receive a certain number of BCH matching the value of their 10 BTC.
Detailed Explanation of Bitcoin Cash
Bitcoin Cash is a crypto-currency that holds its own blockchain. Its work is also similar to digital currency and New BCH is conceived to Bitcoin Cash mining. It was forged at the end of 2016 that makes it younger than original Bitcoin. The Bitcoin developers wanted to implement some important changes to Bitcoin. But Bitcoin
community could not make an agreement concerning some changes that need to make to implement the idea. So, developer’s team forked Bitcoin to implement a new version of the same code with some modifications.
The reasons that make all the difference between Bitcoin and Bitcoin Cash are incorporated here:
- Bitcoin Cash offers cheaper transfer fees approximately $0.20 per transaction that makes a transaction in BCH cheaper than BTC. A BTC transaction cost approximately $1 per transaction as it used to charge up to $25 per transaction previously.
- BCH transaction or transfer time is much faster so you do not need to wait 10 minutes to verify Bitcoin transaction.
- BCH handle more transactions per second. It means more people can use BCH in comparison to BTC.
The reason behind these changes is that Bitcoin Cash block is eight times bigger than a Bitcoin block. This proves BCH cheaper, faster, and more scalable than Bitcoin. This is the reason Bitcoin Cash is becoming more adopted day by day.
Bitcoin Cash Vs Bitcoin: The Prices War
Crypto-currencies like Bitcoin or Bitcoin Cash derive its values from how much these are adopted, demanded, and used. These can be analyzed in terms of return on investment and value growth. Bitcoin Cash is just one year old and it is still in the phase of capturing and realizing its place in the crypto market. There is speculation that Bitcoin Cash could take a large portion of Bitcoin’s market share that is making it new dominant crypto-currency in the market. The Bitcoin cash has more scaling capacity that allows more people to use it with ease and lower fees. To fix the Bitcoin problem, the developer community could not find or make a mutual update to
fix the Bitcoin code and Bitcoin could lose the war between BTC and BCH. And future more people will switch to BCH as the main value storage and transactional currency. In the recent past, Bitcoin Cash has been an up and down trend in comparison to Bitcoin. Currently, it is staying in the range of 10-15% of Bitcoin price. The reason for the rapid growth of BCH is that newbie investors see Bitcoin Cash as a cheaper Bitcoin with a lower entry point in the market.
The Features Difference Between Bitcoin and Bitcoin Cash
Bitcoin Cash Advantages
The best advantage of Bitcoin Cash is that it provides a cheaper and faster option. This is the reason it is more scalable that allows more people to transact on the blockchain. The development team is quick to implement the solutions that make it more scalable. That provides a great future potential for adoption and use. It is also cheaper to move between the exchanges. When Bitcoin cash prices surge than it trades against the Bitcoin and proved a solid investment option that could make Bitcoin lose its dominance in the market. Bitcoin Cash Disadvantages Currently, Bitcoin Cash does not enjoy much investor’s confidence as Bitcoin. Its adoption rate
and penetration in the digital market is lower than Bitcoin. The price of BCH roam around 10-15% of Bitcoin price, the cost of Bitcoin Cash is relatively the same as Bitcoin. Means a person who mines Bitcoin Cash makes 50-60% less profit than mining the Bitcoin. Finally, in the trading BCH provide far less trading pair with BTC. That makes Bitcoin cash adoption rates and prices much lower than Bitcoin.
Bitcoin Advantage Over Bitcoin Cash
As original crypto-currency, Bitcoin works as a base currency of the entire crypto-currency sector. It is the reason all other crypto-currency work against. Bitcoin is popular and provides more trading pairs option with other. It has made 44.5% of the entire capital in crypto-currency sector and is considered the A gold standard in this growing market. As compared to the community they are vast and cult-like following that proves to be the biggest advantage of the Bitcoin.
Bitcoin Disadvantage Over Bitcoin Cash
The major disadvantage of the Bitcoin is regarding the scalability issues. Bitcoin is slower, older, and cost more per transaction. As the sector will grow, Bitcoin could lose its dominance to other coins. Another main disadvantage is that the core development team of Bitcoin is not united like other crypto teams. And it makes scaling solution more difficult to agree on.
Where You Can Buy These Coins
One of the most popular exchanges to purchase Bitcoin and Bitcoin Cash is Coinbase. You can use fiat to buy these crypto-currencies through credit card and bank account. It is available in 32 countries. If a person does not belong to these countries, he could buy these coins from other platforms like CoinMama or Cex.io. If the broker does not provide an option for BCH you can exchange the Bitcoin on a trading platform like Binanace.
Another option is to buy from a P2P exchange like LocalBitcoins.
Bitcoin and Bitcoin Cash: Conclusion
All over the world, people are under the impression that Bitcoin Cash and Bitcoin is on a war. The practical reason is Bitcoin Cash is a faster and cheaper asset in blockchain transaction. The difference between Bitcoin and Bitcoin cash in terms of practicality is much.
As time goes by, the newer currency provides more good features and the old currency keep on improving the base structure and other good options. The difference between Bitcoin and Bitcoin cash weigh little bit to the side of Bitcoin Cash. This could make the BCH main tool for transactions.
BTC will still to be used as it considered Gold of the digital currency. Both stand to grow in future in terms of value and adoption and making these worthy investments to look into and consider. Now you know the difference between Bitcoin and Bitcoin cash so you can better decide how you want to invest in these currencies and how you want to use them. So be happy to trade in the digital crypto-currency market.