Which is the most valuable crypto between Bitcoin and Bitcoin Cash? If you are looking to invest or write about cryptocurrencies, it is crucial to distinguish them based on features and value.
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Bitcoin Vs. Bitcoin Cash: Which One Should You Choose To Invest?
To start with, Bitcoin is the pioneer of all cryptocurrencies trading today. Several other Bitcoin clones have been developed and still managed to penetrate the market. Bitcoin, Ethereum, XRP, Tether, and Bitcoin Cash are among the world’s top cryptocurrencies.
The nodes used in Bitcoin Cash were once a portion of the Bitcoin blockchain. However, this does not mean that Bitcoin and Bitcoin Cash are similar. In this article, you will find a report on the distinctions between Bitcoin and Bitcoin Cash.
By understanding the origin of these cryptos and their nature, you will be able to judge their current valuation and predict their future value. If you want to understand and write about cryptocurrency, you can always review a list of finance research paper topics for guidance.
Origin
Bitcoin
For several years, Bitcoin was the only existing cryptocurrency. It did not immediately gain popularity despite its massive value. It has been 12 years since Bitcoin’s invention, but the inventor(s) remain unknown. Satoshi Nakamoto is the name attached to the person or group of persons who invented it. You may wonder – is Bitcoin for beginners?
Today, Bitcoin operates like every other currency except that it is decentralized, meaning it is not issued or controlled by any specific body. For example, the US dollar is issued by the national government and controlled by the banks, meaning domestic currencies are centralized on two parties: the government and the banks. Therefore, we depend on banks to authorize and complete transactions during a purchase or cash transfer.
In the case of Bitcoin, no central parties can issue or control the crypto. Instead, all transactions are recorded on an uneditable list called a blockchain. The blockchain indicates who owns what.
Experts use a process called mining to earn bitcoins. Computers solve complex mathematical problems to verify a block and release Bitcoins in this case. The computer that solved the problem wins the verified Bitcoin, and the system creates a new block.
Bitcoin Cash
Bitcoin Cash is a product of Bitcoin. Somebody created Bitcoin Cash by updating some nodes of the Bitcoin blockchain’s original code. As a result, they made a new blockchain with it, a new version and an update of Bitcoin.
Just like Bitcoin, Bitcoin Cash is created through the process of mining. You can access Further explanations of mining cryptocurrencies or essays on related finance topics at getfinanceessay.com.
However, Bitcoin Cash was a result of disagreements regarding modifications. When the developers of Bitcoin could not agree on changes to the original Bitcoin, Bitcoin Cash was created. It was meant to be a better version of Bitcoin, as stated by its developers: a modified Bitcoin version. The modified fork was done in August 2017.
In this new version, more transactions can be processed due to the increased block size. In November 2018, another fork was made and was split between Cash SS and Bitcoin Cash ABC.
READ ALSO: What Is Bitcoin? BTC Price And How It Works
The Changes Differentiating Bitcoin and Bitcoin Cash
Transfer Fees
Making transactions in Bitcoin Cash is cheaper than in Bitcoin. The Bitcoin transfer fee was $1 for a long time, but due to the pandemic, this rate rose by 547% to $6.47. This is considerably higher than Bitcoin Cash, which ranges from $0.001 – $0.07 depending on the wallet.
Transfer Time
Users will experience faster transfer times when transferring Bitcoin Cash than Bitcoin. If the transaction is included in the immediate block, it could take at least 60 minutes to complete. Otherwise, this could take 7 to 8 dates to complete. On the other hand, a Bitcoin Cash transaction typically takes around 10 minutes to be confirmed.
Transfers Per Second
The Bitcoin Cash blocks are more significant than Bitcoin’s by a factor of eight. As a result, this has made Bitcoin Cash more scalable due to its cheap and faster transactions. Similarly, more people can use Bitcoin Cash simultaneously than Bitcoin.
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The Difference in Prices and Value
Cryptocurrencies derive their value from three key determinants: how they are adopted, utilized, and demanded. Bitcoin, being the oldest digital currency, has been the most valuable. Bitcoin Cash, on the other hand, has been accumulating more users, and its value is rising at an unprecedented rate.
Since its inception, many people have predicted that Bitcoin would lose a large portion of its customers to Bitcoin Cash. By addressing the existing scalability issue in Bitcoin’s blocks, Bitcoin Cash was intended to gain a significant advantage over its parent cryptocurrency.
The war between Bitcoin and Bitcoin Cash is still ongoing. The value of Bitcoin Cash is estimated to be between 10% and 15% of that of Bitcoin. Its current price is $234.24, whereas that of Bitcoin is $10892.20.
READ ALSO: The Legalities Of Crypto Betting: A Global Perspective
The Difference in Features
Advantages
Bitcoin Cash
- Bitcoin Cash is faster and cheaper to use. Due to its scalability, it allows more people to transact at the same time.
- The developers are continually updating solutions to increase their scalability.
- Movement between exchanges is cheaper.
Bitcoin
- Over the last few years, Bitcoin has developed to become the digital base currency of the entire crypto sector. As the leading cryptocurrency, it has the advantage of numerous trading pairs, as most cryptocurrencies are traded against it. For this factor, Bitcoin’s superiority continues to rise.
- Bitcoin’s customer following is almost cult-like. With such popularity, its demand and usage are constantly increasing, subsequently increasing its worth.
Disadvantages
Bitcoin Cash
- Being relatively new compared to Bitcoin, Bitcoin Cash struggles to gain market penetration. It has low investor confidence, which in turn lowers its adoption rate.
- Bitcoin Cash mining is similar to Bitcoin’s. As a result, miners who mine Bitcoin Cash get fewer profits. For this reason, miners prefer to mine Bitcoin rather than other cryptocurrencies.
- In the market, it has fewer trading pairs. This makes it less tradeable and adaptable.
Bitcoin
- Scalability issues pose the most significant disadvantage of Bitcoin compared to Bitcoin Cash.
- The development of Bitcoin is also somewhat slower than that of other cryptocurrencies of its kind due to a lack of unity among Bitcoin’s development team. They lack a visionary leader; hence, the division hinders their ability to implement scaling solutions.
FAQs on Bitcoin vs. Bitcoin Cash
Which one should I invest in?
This is a financial decision requiring your own research. Consider factors such as your investment goals, risk tolerance, and market trends before making any decisions.
Can I use Bitcoin Cash for everyday transactions?
With its faster transaction speeds and potentially lower fees, Bitcoin Cash may be a more suitable option for everyday purchases than Bitcoin’s current state. However, merchant adoption for both currencies is still in the process of evolving.
Will Bitcoin Cash ever replace Bitcoin?
It’s difficult to predict. Both have their own niche and dedicated communities. The future depends on adoption, innovation, and how each coin addresses its challenges.
Conclusion
For the last two years (since 2018), Bitcoin Cash has repeatedly proven to be a good investment. Even with its short existence, it has risen to become one of the top five most valuable cryptocurrencies.
As a successful fork of Bitcoin, solving the scalability issues in its parent blocks, Bitcoin Cash appears to be a better investment than Bitcoin in 2020.
As it gains strength, Bitcoin Cash is predicted to keep growing and rising in value. Soon, Bitcoin Cash could take the pole position in the crypto industry, surpassing Bitcoin.
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About the Author:
Daniel Segun is the Founder and CEO of SecureBlitz Cybersecurity Media, with a background in Computer Science and Digital Marketing. When not writing, he's probably busy designing graphics or developing websites.
