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In today’s world of cryptocurrencies Bitcoin is still the number one coin. Many people do not believe in Bitcoin, they say that it is old and outdated, that there are many other coins out there who have better solutions then Bitcoin, but the fact is that Bitcoin still remains number one cryptocurrency.
Now I am sure that you’ve heard about Bitcoin Cash. And you are probably wondering is Bitcoin Cash another coin or is it a part of the same coin. In today’s post I am going to focus on the difference between thеse 2 coins (Bitcoin and Bitcoin Cash).
Bitcoin Cash originated from Bitcoin itself. Bitcoin Cash nodes were once a part of the Bitcoin Blockchain and Bitcoin Cash was a fork of Bitcoin.
I am sure if you have some basic knowledge about Bitcoin you know that Bitcoin was the first cryptocurrency and for many years wasn’t much known in the world. It’s gain its popularity within the last years. Bitcoin was created as any other currency. You can use it to buy, sell and trade for goods, services, investments and more. Also Bitcoin is not controlled, owned by any single group or a party compared to all the other currencies which are controlled and owned by the governments of the countries. Bitcoin was developed to make the things easier for the every day use. For example when you are transferring money to a friend or family the bank needs to authorize and process the transaction, for which transaction is charging certain fees. With Bitcoin on the other hand the transactions on the blockchain are verified by the computers that run the blockchain, and these computers can be owned by anybody – the blockchain is decentralized.
On the blockchain the transactions are stored and submitted in blocks. The computers are verifying the entire block of transactions after solving a complicated mathematical problem. And when that problem is solved, the transactions in the block are verified and a new Bitcoin is created and given as a reward to the computer that has solved the problem. And this process is called mining. However, as many people are trying to get their hands on some Bitcoin and the rate of creating Bitcoins decreases, the common belief is that the value will increase. And that’s why so many people are crazy about Bitcoin. And today Bitcoin is still the most valuable cryptocurrency on the market.
Many other cryptocurrencies are trying to outrank Bitcoin and reduce its dominance but only a few are getting closer. However Bitcoin cash may be an exception.
Since Bitcoin Cash is a fork of Bitcoin, let’s see what a fork is before I explain Bitcoin Cash.
There have been a few Bitcoin forks. A fork is created when the original code of a blockchain is updated but only some of the nodes (Computers) on the blockchain accept the update. The original Blockchain (like bitcoin) remains the same and the updated nodes split of from the original blockchain and create a new blockchain (like Bitcoin cash) and the coins on the Blockchain become separate and unique from the ones on the original blockchain. This idea came from a group of influential miners, developers, investors and users. The official Bitcoin Cash Website defines itself as:
Bitcoin Cash is a peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate. The official date and time for the fork was: 1st of August 2017. So anyone who was holding the original coin at that time will automatically get the forked version of the coin. So, if someone had 10 BTC before the fork, automatically received a certain number of Bitcoin cash matching the value of 10 Bitcoins.
Today same like Bitcoin, Bitcoin Cash is a cryptocurrency with its own blockchain. Everything happened because small group of influential miners, developers, investors and users wanted to make some important changes to the Bitcoin. The fork happened without the agreement of a majority of miners and hash power. But anyway it happened. Let’s see now the changes that were made to Bitcoin cash and what are its Benefits and Features:
- They gave a new name to the coin.
- Bitcoin Cash has cheaper transfer fees (around $0.20 per transaction).
- Bitcoin Cash has much faster transfer times.
- Bitcoin Cash can handle more transactions per second.
- The block size limit has been increased up to 8MB.
- A better security
With all the new updates that Bitcoin cash have, has made this coin to be much faster, cheaper and more scalable than Bitcoin. And every day Bitcoin Cash is becoming more and more adopted by the people.
The cryptocurrencies derive their value from how much they are adopted, used and demanded. In this case both Bitcoin and Bitcoin Cash are holders of value. Until now Bitcoin has the most value, but Bitcoin cash is gaining a lot of users and value and is almost a year old. A lot of people speculate that Bitcoin Cash will take a good portion from the Bitcoin’s market and it might be the new dominant crypto in the industry. In the recent past Bitcoin Cash has been worth as low as 5% of Bitcoin and at the moment is 10-15% of the price of Bitcoin. Bitcoin Cash has many new investors and it’s growing rapidly.
The main advantage of Bitcoin Cash is that it is cheaper and faster to use.
The main disadvantage is that Bitcoin Cash doesn’t have as much investors as Bitcoin. Its adoption is much lower than the Bitcoin. This has a lot to do with the fact that the coin is much newer than Bitcoin. While the price of Bitcoin Cash is around 10-15% of the price of Bitcoin, the cost of the mining is the same. And that makes it less profitable than Bitcoin. And also when it comes to trading Bitcoin Cash has far less trading pairs than Bitcoin.
If you would like to buy Bitcoin Cash you can do it on some of the most popular crypto exchanges like Coinbase, CEX-IO, Binance and others. You can always check on their website.
Many people are under the impression that Bitcoin Cash vs Bitcoin is a war, and that the one should be better than the other one. Bitcoin Cash is an updated version with faster and cheaper transactions and fees, but Bitcoin is the original cryptocurrency, most adopted and currently the greatest store of value in the cryptomarket. In the future Bitcoin Cash can become the main tool for transactions as more users adopt it. And Bitcoin can continue to be used as a store of value that is considered the gold of digital currency. Both of them will grow in value over time, making it a worthy investment for any investors to look into.
For example you can invest into Bitcoin Cash to use it as your main form of currency to transact with, or you can invest in Bitcoin the way you would invest in gold-for investment benefits. The question is which one you prefer? And what for?
VERY IMPORTANT: Always make additional, independent research, and always consult a financial investor before investing. I am not a financial advisor, simply a crypto enthusiast. My posts are educational and informational.
Until the next post……STAY SAFE and
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