Are you aware of the fact that Bitcoin Cash (BCH) actually sprang from Bitcoin (BTC) and is regarded as its fork? In other words, the nodes of Bitcoin Cash once belonged to the Bitcoin blockchain. They were updated and split out of the initial blockchain to give birth to a new one – the Bitcoin Cash blockchain.
Today we suggest having a closer look at these two coins!
As the crypto giants, Bitcoin and Bitcoin Cash, have found their secure places on the financial market, quite predictably, a couple of questions pop up in investors’ minds. These include: “What are the differences between BHC and BTC?”, “Which cryptocurrency has an edge over the other?”
Rest assured, using this article, WildTornado casino will help you put your finger on the aforementioned questions, shedding light on all of the striking differences between Bitcoin and Bitcoin Cash.
Let us kick off by briefly touching on the subject of Bitcoin itself.
With so much buzz around Bitcoin over the recent years, by this time you might be well informed that the foundation of the crypto in question is the technology known as the blockchain. To elaborate on this, all the transactions occur in the form of recorded information, otherwise known as blocks. As a matter of fact, computers are supposed to solve a rather sophisticated mathematical equation to verify the block. Once this complex task is completed, Bitcoin is formed. This whole procedure is referred to as mining.
Blockchain technology guarantees the security of Bitcoin, eliminating the risks of counterfeiting. It also ensures the absolute decentralization of Bitcoin – the computers, rather than a central authority or a single batch of people, have control over the blockchain and all transaction verifications.
As it stands, Bitcoin’s value significantly overrides the value of all its digital counterparts on the market. However, there appear to be some issues (we’ll linger on them below) that Bitcoin’s developers are unable to tackle. Bitcoin Cash, on the other hand, deals with those quite successfully. As a result, it comes as no surprise that BTC’s popularity is starting to gain steam.
To produce a series of essential changes regarding the convenience of the cryptocurrency transaction process, Bitcoin developers came up with a modified version of Bitcoin’s code. As they call it – they forked Bitcoin to give life to Bitcoin Cash.
Being a rather new development on the digital currency market (2016), Bitcoin Cash also comes into existence via the mining process. That said, in many ways, it’s closely akin to Bitcoin. On the other side, it features characteristics, which are completely different from those of BTC.
The main difference
The crucial difference between Bitcoin and Bitcoin Cash lies in the size of blocks of the two cryptos. The block of the former has the size of 1MB, whereas the block of the latter is an impressive 8MB. The thing is, the bigger the block, the more transactions can be made, which means the essential improvement on transaction speed on the part of Bitcoin Cash.
Let us linger on all the differences between BCH and BTC in the following three sections:
- Transaction fees are much smaller as far as BCH is concerned. If you are willing to save your money, you may want to transfer Bitcoin Cash for about $0.20 per transaction rather than Bitcoin for $1
- BCH offers transaction promptness, so you are not compelled to wait. On the other hand, Bitcoin transfer verification makes you wait around 10 minutes
- With a bigger number of transactions processed per second, many more people can capitalize on Bitcoin Cash at a given time as opposed to Bitcoin
To summarise, the striking advantages of BCH over BTC come from a bigger size of its block and include promptness, cheapness, and scalability.
On the other hand, a bigger size of Bitcoin Cash block translates into a disappointing consequence of much bigger costs of both data storage and hardware. It means a coin is likely to become more and more centralized, and expensive hardware will lead to the situation when only huge mining communities will be able to benefit from working on the blockchain.
BCH vs BTC: the value
The value of cryptocurrencies is dependant on the scale of their demand and adoption in the crypto society. And while Bitcoin price has not been emulated by any of the cryptos, including Bitcoin cash, it is speculated that the latter might get the biggest piece of the crypto pie in not so distant future. The reason for this speculation comes from the ability of BCH to tackle the problem of scaling, as opposed to BTC.
Unless the group of Bitcoin developers comes up with the solution to the issue in question, there is a likelihood of people switching to Bitcoin cash as their main transfer currency.
Quite recently, the value of BCH grew from a low of 5 % of BTC up to as much as 33%. Today, it makes up about 10-12% of the value of Bitcoin.
Which to choose
As a matter of fact, a slow transfer process and big fees are rather unfortunate features of the crypto titan Bitcoin. The point is, BTC is a digital currency that is meant to be characterized by rarity, challenge, and value. Furthermore, the bitcoin society is dubbing it as a “store of value” for the entire cryptocurrency sector. As such, it is paralleled with gold’s value backing up the USD, as well as other fiat currencies. It means Bitcoin, playing the role of electronic gold, is likely to be used more as liquidity rather than currency.
Bitcoin Cash was forked from Bitcoin to address the issues of slow transactions and big fees. As a matter of fact, it is the same Bitcoin, which is fast to send or receive in nature. That’s why “cash” is added to its name. Bitcoin Cash was intended to be the funds to spend next to the gold of Bitcoin.
As the crypto industry undergoes its evolvement and maturity, we believe that both cryptocurrencies are going to play a major role in the digital financial market. The choice should be based on the needs one wishes to accommodate – whether these are storage needs or for transaction purposes.
P.S. We ensure all of our players can enjoy all the benefits of crypto innovation!
Before long you will be able to play at WildTornado with Bitcoin Cash, as well as with other big digital currencies in the industry.
More updates on the subject of cryptocurrency will follow! All the best!