Do you know Bitcoin Cash itself is originated from Bitcoin?
That’s right- Bitcoin Cash nodes used to be a part of the Bitcoin blockchain.
But which one should you choose to invest in? And how Bitcoin is different from Bitcoin Cash?
This article is intended to answer your entire questions regarding this.
Bitcoin is considered one of the safest currencies in the world because of the security of transactions ensured by it as all the transactions are fully verified. However, unluckily, transaction times are the most important because the network would tend to be flooded as users increase, but the blockchain remains the same.
Actually, the Bitcoin network can process only 7 transactions per second and these take 10 minutes to execute.
Thus, it takes time and for this, two solutions have been introduced- one was to reduce the amount of information included in each block and another was to increase the size of the blocks in order to process more information.
However, most of the computing power of the Bitcoin network was owned by pools and mining companies.
In 2017, they decided to add SegWit2x technology. This technology decreases the data to be authenticated in each block by obliterating the signature data from the data block that needs to be processed per transaction.
Thereafter, the consensus of miners and developers launched Bitcoin Cash in the concern of improving the speed and fluidity of the Bitcoin network.
This new cryptocurrency has a larger block than Bitcoin and its objective is to accelerate the speed of authentication of the blocks within a specified level of difficulty to avoid flooded the network when the number of users becomes too large.
The major differences between Bitcoin and Bitcoin Cash are:
- As compared to Bitcoin Cash has fewer transfer fees so making transactions in Bitcoin Cash will save more money.
- Bitcoin Cash has faster transfer times. So, you do not have to wait for the 10 minutes it takes to verify a Bitcoin transaction! That is why it is more scalable, meaning more people can transact on the blockchain at any given time.
- Bitcoin Cash can handle more transactions per second than Bitcoin. This means that more people can use Bitcoin Cash at the same time than they can with BTC.
All these changes are due to the fact that a Bitcoin Cash block is eight times bigger than a Bitcoin block. This makes Bitcoin Cash faster, cheaper, and more scalable than Bitcoin. Bitcoin Cash is becoming more and more accepted because of this.
All in all, many people are under the impression that Bitcoin Cash vs. Bitcoin is a confrontation and that one should be better than the other.
For sensible reasons, Bitcoin Cash is a faster and cheaper asset to use for transacting on the blockchain, while Bitcoin being the original cryptocurrency, is the most accepted and currently the utmost store of value in the crypto market.
This leads me to think that both of these coins will stay as staples in the industry as it develops and grow-up.