What is the difference between bitcoin cash and bitcoin? This is a question that often confuses people who are new to the cryptocurrency space.
To say it simply bitcoin cash is a fork of the original bitcoin blockchain. This means that it shares many similarities with bitcoin, but there are also some key differences.
In the article below, we will explore both of these cryptocurrencies. Keep reading to learn more!
What Is Bitcoin Cash and What Is Its Purpose?
As we’ve mentioned before, bitcoin cash (BCH) is a fork of the bitcoin blockchain. It was launched in August 2017 and was designed to be a more practical and user-friendly version of bitcoin.
Bitcoin cash is intended to be used as a medium of exchange, like traditional fiat currencies. However, it is not clear what the future holds for it. While some businesses have begun accepting bitcoin cash, it is not yet widely used. Only time will tell whether bitcoin cash will become a major player in the world of cryptocurrency.
Also read: How Do Crypto Payments Work?
What Are the Differences Between Bitcoin Cash and Bitcoin?
The most obvious difference between bitcoin cash and bitcoin is the block size limit. Bitcoin cash has increased the limit to eight megabytes, while bitcoin remains at one megabyte. This allows for more transactions to be processed per second on the bitcoin cash network.
Another key difference is that SegWit, a protocol upgrade that improves scalability, is not supported by bitcoin cash. It makes the bitcoin cash network less efficient than the bitcoin one.
Finally, the two cryptocurrencies have different transaction fees. Bitcoin cash transaction fees are generally lower than those of bitcoin. This is because the larger block size limit of bitcoin cash allows for more transactions to happen at the same time. It reduces congestion and eliminates the need for high fees.
How Can You Buy Bitcoin Cash and What Are the Risks Involved?
While there are many ways to purchase bitcoin cash,
the easiest way is to buy it on an exchange. Exchanges are online platforms that allow you to buy and sell cryptocurrencies using fiat currency (i.e., USD). Coinbase and Binance are two of the most popular ones.
Once you’ve purchased your BCH, you can store it in a cryptocurrency wallet. Wallets are digital storage devices that can be used to hold cryptocurrencies like bitcoin cash. There are many different types of wallets available, including software, hardware, and paper wallets. However, not all wallets support all types of cryptocurrencies, so check that your wallet supports BCH before you attempt to store it there.
Investing in cryptocurrency is risky, and you should always do your own research before investing. This is especially true for bitcoin cash, as it is a relatively new cryptocurrency. That being said, there is potential for growth, and if you’re careful, investing in BCH could turn out to be a wise decision.
Also read: Converting Cryptocurrency to Cash: How Feasible Is It?
Bitcoin Cash vs. BTC: Which One Is Better?
Now that we know the difference between Bitcoin Cash vs. BTC, let’s compare these two cryptocurrencies to see which one is better.
Bitcoin cash has several advantages over bitcoin. Let’s look at them:
- It has improved scalability compared to bitcoin. This makes it a more attractive option for businesses and users who want to use cryptocurrency as a means of payment.
- The fees associated with bitcoin cash are lower than those of bitcoin.
- It has a larger block size limit. Due to that, the transactions are processed more quickly.
On the other hand, bitcoin has some advantages as well.
- It is a more established cryptocurrency. It is easier to pay with it as it is more widely accepted by businesses and users.
- Bitcoin has a more robust development team and is, therefore, more likely to continue being developed and improved.
- While the fees associated with bitcoin are higher than those of bitcoin cash, they are still relatively low compared to other payment methods.
So, which one is better? Ultimately, it depends on your needs and preferences. If you are looking for a more scalable option with lower fees, then bitcoin cash may be the best choice. However, if you are looking for a more established option, then bitcoin may be more suitable for you. Whichever one you choose, be sure to do your own research and invest only what you can afford to lose.
In this article, we have compared bitcoin cash and bitcoin. We’ve looked at their differences in terms of scalability, transaction fees, and development team. Ultimately, it is up to you to decide which one is better for you. However, we would recommend that you act responsibly when you’re making your trading decisions.