The topic Bitcoin vs. Bitcoin Cash has always been confusing, even for investors. Continue reading and understand the fundamental difference, also similarities between Bitcoin and Bitcoin Cash.
What is Cryptocurrency?
For those who are new to this term, cryptocurrency is basically an online currency which is considered as safest since it cannot be copied or cannot be forfeited while maintaining complete transparency over each transaction. Thus, making it more secure than any other type of online currency. Apart from this, cryptocurrencies are also commonly used as an investment asset. And there are various different currencies such as Bitcoin, Bitcoin Cash, Litecoin, Ethereum, etc.
Bitcoin vs. Bitcoin Cash
Bitcoin: Bitcoin is the earliest cryptocurrency, developed and debuted back in January 2009. Bitcoin and other cryptos follow concepts laid out on White Papers by the inventor, Satoshi Nakamoto himself. The real identity of the person involved in this great invention is still mysterious. Bitcoin revolution, although it offers lower transaction rates, can be considered pretty slow when it comes to transactions, taking around 2 weeks for the transaction to reflect in one’s bank account.
So, unlike Government-issued currencies, Bitcoin is operated under Decentralized Finance systems. In the month of July 2017, mining and other incorporated companies that take upto 80% of Bitcoin’s power to another authority named as Segregated Witness or commonly known as SegWit. This technology, when it came to light, became an immense asset since it greatly increased transaction speeds of Bitcoin transactions just by meddling with blocks in the blockchain.
Bitcoin Cash: Bitcoin Cash, on the other hand, is different. Bitcoin Cash, although being started by Bitcoin miners and other developers, has equal contribution when it comes to the future of cryptocurrency market. However, it has been far different than those of Bitcoin, and not just for transaction speeds and reliability. The primary difference between Bitcoin and Bitcoin Cash came to light when SegWit was considered. Both have different accessibility for SegWit.
Another significant difference was the fact that for Bitcoin, the ideal size of each block in blockchain transaction was around 1 MB which was increased later on with the help of SegWit. But, Bitcoin Cash, at the start, had considerably larger blocks of 8 MB which further, in 2018, was increased to 4 times of the original size that is 32 MB. This, regardless of already having incredible transaction speeds, became even faster and gradually gaining backing from investors.
Even though we can say, Bitcoin Cash (BCH) has faster transaction speed, thus, more numbers of transactions, this also comes with considerable downsides in security. To achieve this speed, Bitcoin Cash has lesser security as compared to that of the original Bitcoin Network. Apart from this, Bitcoin is more popular and has more usability. Thus, making the chances of liquidity next to zero. In contrast, BCH users may or may not face such issues in the far or near future.