Were you aware of the fact that Bitcoin Cash originated from Bitcoin itself? That’s true — Bitcoin Cash nodes were once a part of the Bitcoin blockchain. Bitcoin Cash is a fork of Bitcoin. But which of the two should you choose to invest in? What is the difference between Bitcoin Cash VS Bitcoin? What’s a “fork’? There are a lot of questions, and I’m here to answer them all!
In July 2017, mining pools and companies representing roughly 80 per cent to 90 per cent of bitcoin computing power voted to incorporate a technology known as a segregated witness, called SegWit2x. SegWit2x, which by removing signature data from the block of data that needs to be processed in each transaction and having it attached in an extended block, makes the amount of data that needs to be verified in each block smaller. This is not an insignificant technological shift, as the signature data has been estimated to account for up to 65 per cent of data processed in each block.
The average block size of bitcoin increased to 1.305 MB, surpassing previous records and the talk of doubling the size of blocks from 1 MB to 2 MB ramped up in 2017 and 2018, and, as of February 2019. By January 2020, however, block size has declined back toward 1 MB on average.4. Terms of improving bitcoin’s scalability are helped by the larger block size. Research released by cryptocurrency exchange BitMex showed that SegWit implementation had helped boost the block size, amid a steady adoption rate for the technology, in September 2017.
Bitcoin Cash is a different story. Bitcoin Cash was begun by bitcoin miners and developers who are equally worried about the future of the cryptocurrency and its ability to scale effectively. However, about the adoption of a segregated witness technology, these individuals had their reservations. They felt the anonymous party that first proposed the blockchain technology behind cryptocurrency, as though SegWit2x did not address the fundamental problem of scalability in a meaningful way, nor did it follow the roadmap initially outlined by Satoshi Nakamoto. Furthermore, the process of introducing SegWit2x as the road forward was anything but transparent, and there were democratization of the currency and concerns that its introduction undermined the decentralization.
In August 2017, effectively creating a new currency: BCH, some miners and developers initiated what is known as a hard fork. BCH has its own blockchain and specifications, including one very important distinction from bitcoin. With an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it, BCH has implemented an increased block size of 8 MB to accelerate the verification process.
When compared to the Bitcoin Network, Bitcoin Cash is thus able to process transactions more quickly, meaning that wait times are shorter and transaction processing fees tend to be lower. Many more transactions per second can be handled by the Bitcoin Cash network than the Bitcoin network can. However, downsides come with faster transaction verification time as well. Security could be compromised relative to the Bitcoin network and this is one potential issue with the larger block size associated with BCH. Similarly, users of BCH may find that liquidity and real-world usability is lower than for bitcoin, as bitcoin remains the most popular cryptocurrency in the world as well as the largest by market cap.
The debate about transaction processing, v scalability and blocks has continued beyond the fork which then led to Bitcoin Cash. In November of 2018, for example, resulting in the creation of yet another derivation of bitcoin called Bitcoin SV, the Bitcoin Cash network experienced its own hard fork. While also making modifications to facilitate scalability and faster transaction speeds, Bitcoin SV was created in an effort to stay true to the original vision for bitcoin that Satoshi Nakamoto described in the bitcoin white paper. No signs of being resolved are shown in the debate about the future of bitcoin.
Bitcoin Advantages Over Bitcoin Cash
Bitcoin is the base currency of the entire sector as it is the original cryptocurrency. It is tradable on most exchanges and is what all other cryptocurrencies trade against (as well as ETH, most of the time). Bitcoin has the most trading pairs with other cryptocurrencies and is the most popular.
As of 23rd March 2018, Bitcoin is considered the Gold standard of a rapidly growing industry and makes up 44.5% of the entire capital of the crypto-sector. The largest benefit Bitcoin has over Bitcoin Cash is its community and the cult-like following: it’s the first cryptocurrency anyone hears about. It is super, super popular — if your Grandpa knows about one cryptocurrency, I’ll bet you $100 its Bitcoin!
Bitcoin Disadvantages Over Bitcoin Cash
The scalability issues facing Bitcoin are mainly regarded as the disadvantages of Bitcoin when compared to Bitcoin Cash. Bitcoin is slower, older and costs a lot more per transaction. It is likely that when the sector grows, then Bitcoin will proceed to lose its dominance over these other coins.
The core development team of Bitcoin is not as good as other crypto teams, like that of Ether, for example, and this is another disadvantage. They appear to be lacking clear leadership and divided as a group.
The implementation of scaling solutions is made more difficult by this to agree on and implement to the network — not good at all!
Bitcoin Cash VS Bitcoin: Where Can You Buy Them?
Coinbase is one of the most famous exchanges to buy both Bitcoin and Bitcoin Cash. You can use fiat to buy popular cryptocurrencies (including Bitcoin and Bitcoin Cash) on this platform through your credit card, bank account and more. Unfortunately, only in 32 countries, Coinbase is available :
U.S.A., Canada, UK, Switzerland, Sweden, Spain, Slovenia, San Marino, Portugal, Poland, Norway, Netherlands, Monaco, Malta, Liechtenstein, Latvia, Jersey, Italy, Ireland, Hungary, Greece, Finland, Denmark, Czech Republic, Cyprus, Croatia, Bulgaria, Belgium, Austria, Australia and Singapore.
You can always buy Bitcoin and exchange it for Bitcoin Cash on a trading platform like Binance if you use a broker that doesn’t sell BCH but sells BTC.
Bitcoin Cash VS Bitcoin: Conclusion
A lot of people are under the feeling that Bitcoin Cash VS Bitcoin is a war, in which one should be better than the other. For practical reasons, to use for transacting on the blockchain, Bitcoin Cash is a faster and cheaper asset.
But being the original cryptocurrency, Bitcoin is the most adopted and currently the greatest store of value in the cryptomarket. As it evolves and matures, this leads me to believe that both these coins can remain as staples in the industry.
BCH can become the main tool for moving money around and transactions as more users adopt it. BTC can continue to be utilized as a store of value that is regarded as the gold of digital currency. Making them worthy investments for any investor to look into and consider, both stand to grow in value and adoption over time.