You must have heard about the major cryptocurrencies such as Bitcoin and Bitcoin Cash. Also, you can buy these digital currencies at Coinbase that is a secure, reliable, and fastest exchange platform.
But you might still be confused about what the difference between Bitcoin and Bitcoin cash is. If this question bothers you, you are in the right place. This guide will help you find differences between Bitcoin and Bitcoin Cash.
Did you know?
Bitcoin Cash (BCH) was created from Bitcoin itself. BCH is the fragment of the Bitcoin blockchain. Therefore, it is called a fork of Bitcoin.
You might be wondering which digital currency you should invest in. Before making a final decision, you need to know the difference between Bitcoin and Bitcoin Cash.
What is Bitcoin (BTC)?
Bitcoin is the first-ever digital currency, created by Satoshi Nakamoto, back in 2008. Bitcoin is a decentralized digital currency that allows users to send online payments from one party to another without requiring intermediaries such as financial institutions.
Bitcoin is not controlled or issued by any central authority. Also, the transactions made on the Bitcoin blockchain are verified by powerful computers that run the blockchain. The total number of this cryptocurrency is fixed, which is limited to 21 million Bitcoin.
What is a Fork?
A fork is created by updating the original code of blockchain technology. There are various Bitcoin forks. However, none of them is used and is renowned as Bitcoin Cash.
The original Bitcoin blockchain remains unchanged while the updates nodes split off from blockchain to create Bitcoin cash that has its own specific blockchain.
What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is the version of the Bitcoin core. It works similarly to digital currency. Bitcoin cash was first announced in August 2017, and therefore, it is much younger than Bitcoin that affects its market cap.
Historically, Bitcoin developers and miners created Bitcoin Cash who was highly concerned about the future of Bitcoin and its scalability.
What is the difference between Bitcoin and Bitcoin Cash?
● Transaction Fees
The transaction fee of BCH is quite low than Bitcoin. More precisely, BCH’s transaction fees are $0.0019 compared to Bitcoin that has a transfer fee of $0.20 per transaction. Therefore, making transactions in Bitcoin cash can save you money than Bitcoin.
● Transfer Time
Bitcoin cash has comparatively faster transfer times than Bitcoin. Bitcoin network is slow due to problems in its blockchain. However, in Bitcoin cash, users don’t have to wait longer to get their transactions verified. In Bitcoin transactions, it takes about 10 minutes for verification.
Bitcoin cash (BCH) has its own specified blockchain that is one significant distinction from Bitcoin. To speed up the verification process, Bitcoin cash implements an increased block size of 8MB.
Contrastingly, Bitcoin’s block size is limited to just 1MB that lowers its transaction speeds while increasing its transaction fees.
However, due to the larger block size of BCH, there are some downsides as well. For instance, due to faster transaction speed, the security of Bitcoin cash could be compromised compared to the Bitcoin network.
● More and More Transactions
Bitcoin cash can manage more transactions per second, meaning that many people can use Bitcoin cash at the same time. This is due to Bitcoin cash’s large block size that accommodates more transactions that also lowers the waiting time.
One key point of comparison between Bitcoin and Bitcoin cash is pricing. When it comes to price, no cryptocurrency can beat Bitcoin. Since March 2010, the price of 1 Bitcoin, which was $0.05 to December 2019, has substantially increased to more than 12 million percent.
Unfortunately, the performance of Bitcoin cash is not that strong. Bitcoin cash had also lost around 65% of its value since 2017 when it was first created.
All of the differences between Bitcoin and Bitcoin cash are due to changes in the block size. Since BCH’s block size is 8 times bigger than BTC, it makes Bitcoin cash (BCH) cheaper, faster, and more scalable. Based on this fact, many users are adopting Bitcoin (BCH) by the day.
Now that you know the differences between Bitcoin and Bitcoin Cash, you can make a more informed decision to either invest in Bitcoin or Bitcoin cash.
One of the most reliable and fastest exchange platforms to buy and sell both Bitcoin and Bitcoin Cash is Coinbase.