We are here to talk about the difference between Bitcoin and Bitcoin Cash.
What is Bitcoin?
According to Investopedia, Bitcoin (BTC) is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for intermediaries like banks. Bitcoin’s basic features include being distributed, transparent and peer-to-peer.
What is Bitcoin Cash?
Bitcoin Cash (BCH) is a cryptocurrency that was created in August 2017 as a fork of Bitcoin Classic. Bitcoin Cash increases the size of blocks, allowing more transactions to be processed. Bitcoin Cash is a decentralized peer-to-peer electronic cash system that does not rely on any central authority like a government or financial institution.
Why are there two versions of Bitcoin?
In August 2017, the Bitcoin blockchain experienced a hard fork. This resulted in the creation of Bitcoin Cash, which is a cryptocurrency that is similar to Bitcoin but with a larger block size limit.
Bitcoin vs. Bitcoin Cash: Key differences
The key differences between Bitcoin and Bitcoin Cash are speed, security and cost.
Transaction speed - Bitcoin Cash has a transaction block size of 32MB, allowing for over 100 transactions per second, while Bitcoin can only process seven transactions per second.
Security - Bitcoin Cash processes transactions more quickly and at a lower cost than Bitcoin because it requires less mining power to verify new blocks. This makes the system less secure than Bitcoin.
Transaction costs - Bitcoin Cash has cheaper transfer fees (around $0.20 per transaction), so making transactions in BCH will save you more.
Bitcoin (BTC) - #1 cryptocurrency by market cap (as of April 2023)
Bitcoin Cash (BCH) - #29 cryptocurrency by market cap (as of April 2023)
Bitcoin and Bitcoin Cash Price
Bitcoin has both bear and bull markets. Bitcoin’s (BTC) last bull run price peaked at almost $69,000 in November 2021, but the asset and the general crypto market have since reversed the gains.
Bitcoin is currently in a bear market as of December 2021.
Conclusion
Despite both being named Bitcoin, the two cryptocurrencies are quite different in terms of functionality. Bitcoin Cash (BCH) has some advantages over Bitcoin, including lower transaction costs and faster transaction times. However, it is not as well-known or as popular as Bitcoin.
❗Please be reminded that cryptocurrency trading is highly risky and is not suitable for the general public. We encourage you to do your own research before investing.
❗This is not trading or investment advice. Its informational purposes only.
