Bitcoin is arguably one of the most talked about topics in finance, but there are many questions still unanswered. Bitcoin Cash was created to address some of these concerns, for example- transaction speed and cost. But how do they compare? In this blog post, we will compare Bitcoin vs Bitcoin cash so that you can decide which one is right for your needs.
Let's get started.
An Overview of Bitcoin
Bitcoin is decentralized, meaning it has no central control or issuing authority. Instead of being controlled by a bank or other financial institution, Bitcoin can be issued and managed by anyone with an internet connection through the peer-to-peer network which advocates call "The Blockchain". This allows for safer transactions to take place without the need for middlemen. With this said, there are some issues that have arisen after its first release in 2009.
These problems include slow transaction times (taking upwards of 24 hours), large fees involved with transferring money into specific crypto currencies, as well as limited scalability - only allowing up to seven transactions per second. As people continued using Bitcoin over time they started demanding improvements on what was already created due to these limitations causing delays when transferring money.
An Overview Of Bitcoin Cash
Bitcoin Cash, on the other hand, is a different matter. Bitcoin Cash was created by Bitcoin miners and programmers who were both concerned about the crypto currency’s future as well as its capacity to expand. These people, on the other hand, have qualms regarding the use of partitioned witness tech. They believed SegWit2x couldn’t address the basic issue of sustainability, nor did it adhere to the roadmap provided by Satoshi Nakamoto, the unidentified entity who first suggested the blockchain technology which underpins cryptocurrencies.
Moreover, the method of promoting SegWit2x as a path forward was far from transparent, and there were fears that its implementation would jeopardize the currency's decentralization and democracy.
In August 2017, a hard fork was undertaken by several miners and developers, essentially resulting in the formation of a new monetary system: BCH. BCH does have its own network and standards, with one significant difference from bit coins. BCH has added an enhanced block size of 8 MB that speeds things up the verification system, as well as a variable complexity level to assure the chain's longevity and transactions verification speed, independent of the amount of miners backing it.
The maximal block size for Bitcoin cash was increased fourfold to 32MB in 2018, although average block sizes has remained a tiny percentage of the 32MB limit. 7 Like a way, Bitcoin Cash can process transactions faster than that of the Bitcoin block chain, shorter wait lists and reduced transaction processing costs. The Bitcoin Cash system has a far higher transaction rate than that of the Bitcoin system.
Nevertheless, there are drawbacks to the speedier transaction verification period. The greater block size linked with BCH has the capability to destroy security in comparison to the Bitcoin block chain. Likewise, because Bitcoin is still the most trending crypto in the world and has the highest market capitalization, buyers of BCH may discover that volatility and real-world utility are less than for Bitcoin.
Beyond the schism that resulted in Bitcoin Cash, the discussion about scalability, transactions, and blocks have persisted. The Bitcoin Cash system, for example, underwent its very own block in Nov 2018, leading in the formation of Bitcoin SV, a new variation of cryptocurrency. Bitcoin SV was built in an attempt to keep faithful to Satoshi Nakamoto's initial vision for Bitcoin as expressed in the Bitcoin white paper, whilst simultaneously including changes to improve scalability & processing efficiency. The argument over bit coin’s future looks to be far from being settled.
Bitcoin vs. Bitcoin Cash
There have already been doubts about bitcoins capacity to scale successfully since its beginnings. Transactions involving this digital currency bit coins are handled, validated, and recorded on a block chain, which is a digital ledger. Blockchain technology is a ground-breaking database system. It makes manipulating ledgers much more difficult since the fact as to what has happened is certified by popular sovereignty rather than by a single player. This system is also decentralized, as it is spread among remote machines.
The issue with Bitcoins technology is that it is sluggish, especially when compared to institutions that handle credit card purchases. Visa, Inc. (V), a well-known credit card corporation, handles almost 150 million payments every day, reaching around 1,700 times per second. With 65,000 transactional messages every sec, the firm's capabilities greatly exceed that.
How several times per second could the Bitcoin network handle the transactions? Seven. 2 Trades can take up to a few minutes to complete. As there are far more transactions to execute without the need for a change in operating mechanism that processes these, waiting times have already increased as the Bitcoin community has developed.
The core difficulty of scaling and enhancing the efficiency of the transactions verification process has been the subject of ongoing disputes over bit coin’s tech. Two main treatment methods have been proposed by developers and Bitcoin miners. First one includes reducing the amount of information which needs to be confirmed within every block, resulting in faster and cheaper operations, whereas the second is increasing the size of data bits so more data may be processed at once. These answers led to the creation of Bitcoin Cash (BCH).
Which is More Valuable: Bitcoin or Bitcoin Cash?
As the cryptocurrency market continues to grow, it is becoming more and more difficult not to become involved. More people are buying Bitcoin as a way of investing their money in something new and exciting without having any knowledge about what crypto currencies actually are. Unfortunately, this means that there are more people falling into the trap of investing their money in something they don’t understand and, as a result, losing it all.
When Bitcoin Cash was first launched onto the crypto currency market last year , many were unsure which would become more valuable: Bitcoin or Bitcoin Cash? The jury is still out on whether one could potentially replace the other but what we do know for sure is that not only does each work differently to one another but also has its own individual value. That said, if you want to invest your money in either crypto currencies make sure you understand how each works before taking any action because ultimately both Cryptocurrencies can be extremely volatile in terms of their value.
So, if you’re wondering which is more valuable: Bitcoin or Bitcoin Cash? Well, that really depends on how long you plan to hold onto your digital currency. Both cryptocurrencies have the potential to increase in value over time but only when investing for a short period of time will one be likely worth slightly more than the other. That said, both Cryptocurrencies can also decrease in value at any given moment so it might not always pay off to wait. It all comes down to whether you believe in either crypto currency being able to rise back up again and earn its true investment value."
The Bottom Line
Bitcoin Cash is a fork of Bitcoin that was created in August 2017. One of the most important parts to understand when you start learning about crypto currency is how it works and why transactions are irreversible. You must also know the basic difference in these cryptocurrencies because there are some major advantages/disadvantages when you compare them side by side. If one cryptocurrency has faster processing rates than another then that means transactions will be cheaper or more expensive for users depending on what type of fees each network charges per transaction.