Since the beginning of the Bitcoin era, common people restricted themselves from mining Bitcoin because of the fear of scalability. And, the threat is real! Not many industries or countries accept Bitcoin for transactions.
A transaction involving Bitcoin is recorded in the Blockchain ledger, which is decentralized and hard to manipulate. Hence, a Bitcoin transaction is safer than any digital money, but the Bitcoin network is slower than credit card processing in banks.
At this point, the Bitcoin miners introduced Bitcoin Cash, which is better and effective in many ways than Bitcoin. What are the key differences between Bitcoin and Bitcoin Cash? Let us share the insights with you in this article.
Bitcoin Vs Bitcoin Cash: Overview
Bitcoin [BTC] and Bitcoin cash [BCH] are like Fred and George, they are twins and share many features beyond your imagination. Bitcoin is the first cryptocurrency introduced to the world and still considered as “Gold 2.0”. However, mining Bitcoin and Bitcoin transactions are a little difficult.
Bitcoin Cash, on the other hand, is way cooler and meant to be used as ‘digital cash’. As per the Cryptocurrency News, Bitcoin cash was introduced by the Bitcoin miners through the hard fork of Bitcoin. It simply means that both BTC and BCH share a common code and common transaction history.
Bitcoin Vs Bitcoin Cash: Key Differences
Now, if BTC and BCH have so much in common, then why are people leaning more toward the BCH than BTC? Let’s explore the key difference between Bitcoin and Bitcoin Cash here:
Market Cap
BTC: High
When it comes to market capitalization, BTC is ruling the Bitcoin market as the most circulated cryptocurrency. The current market cap of BTC is ~ $400 billion.
BCH: Low
Compared with BTC, BCH has a much lower market cap, which is ~ 2 billion and is counted among the top 30 cryptocurrencies.
Price
BTC: High
The price range of BTC is notoriously unstable, which is the core reason why people are stepping back from investing in BTC. In the past year, BTC price touched a peak of $68,721.93 and again fell to less than $20,000.
BCH: Low
The market price of BCH is also volatile, but it is much more smoother and affordable than BTC. In the past year, the price of BCH was as high as $800 and lowered by ~$100.
Transaction speed
BTC: Slow
The limit block size for BTC is still 1 megabyte. This is why BTC transactions are super slow. They can only process between 3-7 transactions in a second.
BCH: Fast
The available block size for BCH is 32 megabytes of data and it allows processing more than 100 transactions per second!
Transaction Fees
BTC: Higher
Now that the processing time is slow, it is more competitive. The average transaction fee for BTC was as high as $60 [currently $1-2].
BCH: Lower
The transaction fees of BCH are as low as a few cents.
Security
BTC: High
With limited transactions per second, BTC is more secure than BCH.
BCH: Low
Expanding block sizes and increasing the number of transactions weakened BCH’s security.
Bitcoin Vs Bitcoin Cash: Which Is Better For Investors?
The value of cryptocurrencies fluctuates often. Hence, whether you are investing in BTC or BCH, you are prone to lose money if the value falls.
However, considering the differences between BTC and BCH features, it is safe to invest in BTC if you are looking more into security. However, if you are looking more into transaction speed and lower price, then BCH could be your choice.
Conclusion
Cryptocurrencies and digital currencies are now playing a pivotal role in international transactions. So, if you are looking to invest in Bitcoin or Bitcoin cash, study and compare the features they are offering and choose according to your needs. Find your favorite already? Share with us!
