Despite having similar names, Bitcoin and Bitcoin Cash are quite separate cryptocurrencies. Before making a bitcoin investment, you should know the key difference between bitcoin and bitcoin cash.
Bitcoin
The original and most well-known cryptocurrency is called Bitcoin, or BTC. Bitcoin is a digital currency developed in 2009 by an unidentified person or group known only as Satoshi Nakamoto. The Blockchain is a shared database that powers Bitcoin. Since its introduction, Bitcoin has had a phenomenal rise in value and appeal.
Their real-world worth varies widely, but they may be exchanged for other currencies and products. Although it still has issues, BTC is the most widely used cryptocurrency. In particular, it restricts the use of payments by allowing a small number of transactions each second.
Also Read; Bitcoin VS Ethereum: Are They Really Different?
Bitcoin Cash
To overcome this problem, Bitcoin Cash (BCH) was created in 2017. It offers a quicker and less expensive method of processing payments. Since then, Bitcoin Cash has increased in popularity and is among the top 25 cryptocurrencies.
On the other hand, Bitcoin Cash is a fork of the original Bitcoin project, which implies a copy of the source code. The goal of the community was to make Bitcoin more scalable and transaction-fast. In the end, they produced a completely new and distinct cryptocurrency.
Bitcoin vs. Bitcoin cash
Market cap
Bitcoin has a high market cap. With a market worth of about $400 billion, bitcoin is the most valuable cryptocurrency currently in use.
Bitcoin Cash has a lower market cap. It has a little over $2 billion market capitalization. Bitcoin Cash is among the top 30 cryptocurrencies.
Price
Bitcoin’s price has a history of wildly fluctuating. Its cost has fluctuated over the previous year, from as high as $68,721.93 to as low as $20,000. Although volatile, BCH is typically far less expensive than BTC. It once reached an all-time high of over $800 in 2021, while its low was roughly $100.
Transaction speed
Bitcoin transaction speed is slow. As long as block sizes are restricted to 1 megabyte, Bitcoin can still execute 3 to 7 transactions per second. Bitcoin Cash transactions speeds are faster. Since Bitcoin Cash processes more than 100 transactions per second, the possible block size has expanded from 1 MB to as much as 32 MB, allowing for higher capacity.
Fees
Bitcoin fees are higher. It may get competitive since block space is limited. Although it has sometimes reached $60 per transaction, the average transaction cost for bitcoin has recently been about $1–2.
Bitcoin Cash fees are lower. Average transaction costs are often a tiny fraction of a penny since Bitcoin Cash is less well-known and has much greater block space.
Security
The Bitcoin network can maintain more security than BCH by regulating block size and the volume of transactions processed at once. BCH may become less secure than BTC when block sizes and the number of transactions passing through each block increase.
Also Read; Bitcoin Price Surge: Too Good to be True?
Hashrate
To secure the network and validate transactions, bitcoin miners employ their processing power. Additionally, bitcoin takes up around 100 exhalations compared to bitcoin cash, which takes up 1.55.
Final Thoughts
Bitcoin and Bitcoin Cash are great coins to invest in. When deciding on the one to invest in, it is best to know their differences to see the one that best suits you.
