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 rip-offs of Bitcoin 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 now since Bitcoin’s invention, but no one is certain about the inventor(s). 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 what changes to make 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 could be processed due to the increased size of blocks. 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 will take about 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 as a result of cheap and faster transactions. Similarly, more people can use Bitcoin Cash simultaneously than Bitcoin.
The Difference in Prices and Value
Cryptocurrencies get their value from three determinants, that is how they are adopted, used, and demanded. Bitcoin, being the oldest digital currency, has been the highest holder of value. 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 predicted that Bitcoin was going to lose a large portion of customers to Bitcoin Cash. By solving the existing scalability problem in Bitcoin’s blocks, Bitcoin Cash was meant to gain a considerable advantage over its parent crypto.
The war between Bitcoin and Bitcoin Cash is still ongoing. The worth of Bitcoin Cash is estimated between 10-15% 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 each given 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. Being the lead coin, it has the advantage of numerous trading pairs since most cryptocurrencies trade against it. For this factor, Bitcoin’s superiority remains on a constant 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 newer than Bitcoin, Bitcoin Cash finds it hard to penetrate the market. It has low investor confidence, which makes its adoption rate low.
- Bitcoin cash mining is similar to Bitcoins. As a result, miners who mine Bitcoin Cash get lesser profits. For this reason, miners prefer to mine Bitcoin instead.
- 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 a bit slower than that of other coins of its kind because of a lack of unity among Bitcoin’s development team. They lack a visionary leader; hence, the division slows them down in implementing 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 like your investment goals, risk tolerance, and market trends before making any choices.
Can I use Bitcoin Cash for everyday transactions?
With its faster transaction speeds and potentially lower fees, Bitcoin Cash might be more suitable for everyday purchases than Bitcoin’s current state. However, merchant adoption for both currencies is still 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 the top five most valuable cryptos.
Being a successful fork of Bitcoin and solving the scalability issues in its parent blocks, Bitcoin Cash seems like a better investment than Bitcoin in 2020.
As it gains strength, Bitcoin Cash is predicted to keep growing and rising in worth. Shortly, Bitcoin Cash could rally Bitcoin for the pole position in the crypto industry.
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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.
