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Difference Between Bitcoin And Bitcoin Cash – Which Is Safer?

Difference Between Bitcoin And Bitcoin Cash - Which Is Safer?

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.

Bitcoin Vs. Bitcoin Cash; Which One Should You Choose To Invest?

If you are in digital cryptocurrencies in the world, you may likely have heard the term Bitcoin and Bitcoin cash trending on social media. There has been confusion regarding the two terms, and it is essential to shed light on the issue. To start with, Bitcoin is the pioneer of all cryptocurrencies trading today. There are several other rip-offs of Bitcoin that have been developed and still managed to penetrate the market. Bitcoin, Etherium, 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 completely similar. In this article you will find a report on the distinctions between Bitcoin and Bitcoin Cash. By understanding the origin of each of these cryptos and their individual nature, you will be able to judge their current valuation and probably predict their future value. If you are looking 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.

Today, Bitcoin operates like every other currency except that it is decentralized, meaning that it is not issued or controlled by any specific body. Currencies, for example, the US dollar, are issued by the national government and controlled by the banks, which means that domestic currencies are centralized on two parties, the government, and the banks. Therefore, we are dependent on banks to authorize and complete transactions during a purchase or transfer of cash.

In the case of Bitcoin, there are no central parties to issue or control the crypto. Instead, all transactions are recorded on an uneditable list referred to as a blockchain. The blockchain indicates who owns what. To earn bitcoins, experts use a process called mining. In this case, computers solve complex mathematical problems to verify a block and release Bitcoins. The computer that solved the problem wins the verified Bitcoin, and the system creates a new block.

Bitcoin Cash

Bitcoin Cash is literally a product of Bitcoin. Somebody created Bitcoin Cash through an update done on some nodes of the Bitcoin blockchain’s original code. As a result, they created a new blockchain, and 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 modification disagreements. 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 done, splitting it into Bitcoin Cash SS and Bitcoin Cash ABC.

The Changes Differentiating Bitcoin and Bitcoin Cash

Transfer Fees

Making transactions in Bitcoin Cash is cheaper than in Bitcoin. For a long time, the Bitcoin transfer fee was $1, but due to the pandemic, this rate rose by 547% to $6.47. This is considerably high compared to 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 as opposed to Bitcoin. If the transaction is included in the immediate block, it could take a minimum of 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 bigger 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 at the same time compared to 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 on to date. The worth of Bitcoin Cash is estimated between 10-15% that of Bitcoin. Its current price is $234.24, whereas that of Bitcoin is at $10892.20.

The Difference in Features

Advantages

  • Bitcoin Cash

  1. Bitcoin Cash is faster and cheaper to use. Due to its scalability, it allows more people to transact at each given time.
  2. The developers are continually updating solutions to increase their scalability.
  3. Movement between exchanges is cheaper.
  • Bitcoin

  1. 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.
  2. Bitcoin’s customer following is almost cult-like. With such popularity, its demand and usage are always increasing subsequently increasing its worth.

Disadvantages

  • Bitcoin Cash

  1. Being newer than Bitcoin, Bitcoin Cash finds it hard to penetrate the market. It has low investor confidence, which makes its adoption rate low.
  2. 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.
  3. In the market, it has less trading pairs. This makes it less tradeable and adaptable.
  • Bitcoin

  1. Scalability issues pose the greatest disadvantage of Bitcoin when compared to Bitcoin Cash.
  2. The development of Bitcoin is also a bit slower compared to other coins of its kind because of a lack of unity in Bitcoin’s development team. They clearly lack a visionary leader; hence the division slows them down in implementing scaling solutions.

Conclusion

For the last two years (since 2018) Bitcoin Cash has proven repeatedly to be a good investment. Even with its short period of existence, it has risen to the top five most valuable cryptos in existence.

Being a successful fork of Bitcoin, and for the reason that it has solved the scalability issues existent 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. In the near future, Bitcoin Cash could rally Bitcoin for the pole position in the crypto industry.

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Daniel Segun
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