The war of two crypto titans explained with simplicity.
Did you know that Bitcoin cash actually came from Bitcoin itself? Yep it's right!
Bitcoin Cash is a fork of Bitcoin and was once part of Bitcoin blockchain.
By the end of todays post you should be able to see the differences between Bitcoin and Bitcoin Cash and know what's the one you should invest into!
We first need to describe each coin so you know what each one is for.
Let's start with the first cryptocurrency ever, Bitcoin, which for many years wasn't even known to much people.
You can use it to buy goods, services, invest into it and much more in these days.
Bitcoin is made from blockchain technology that prevents it from being faked (duplicated, and so on).
That also means no one actually owns or control the Bitcoin itself.
For example, the Euro (€) is controlled by EU union, and the central party here are banks, government and government companies.
When you make a transfer of Euros to (let's say) your family, you are relying on your bank to authorize and process the transaction itself.
Bitcoin however isn't controlled by any authority nor government company.
That means when you make a transfer of Euros to your family, it isn't relying on any bank or to authorize it.
What does it rely on then?
Bitcoin relies on blockchain, and the transactions are verified by the computers that run the blockchain.
Those computers can be owned by anybody and thus the blockchain is ‘decentralized’
On blockchain, transactions are in some kind of a ‘block’ where computers verify the entire blocks by solving a complicated math problem.
After that Bitcoin is successfully created and is given to the computer that solved the math problem (also known as mining, more about that in next posts)
More and more people are trying to get their hands on some Bitcoin even if it's small amount.
Due to that the Bitcoin is getting more popular, but more importantly more pricy as rarer.
Bitcoin is still the most valuable cryptocurrency on the market today.
It was suppressed only few times by YFI.
Bitcoin cash is very similar to Bitcoin and is a cryptocurrency within it's own blockchain.
It was created at the end of 2016 making it way more younger than Bitcoin.
Bitcoin was forked to create Bitcoin Cash because the developers of Bitcoin itself wanted to make some huge changes to Bitcoin
As the developers couldn't agree on what should be changes, small group of these developers forked Bitcoin to create a brand new version of the same code, however, with some small modifications.
Now let's get to the list of differences between Bitcoin (BTC) and Bitcoin Cash (BCH)
- Bitcoin Cash has a way more cheaper transfer fees
At around $0.18 per transaction is Bitcoin Cash way more cheaper (in transaction fees) than Bitcoin. Bitcoin is usually going around $1.5 per transactions and jumped more than once to price higher than $100.
- Bitcoin Cash can handle more transactions
That means it's able to process way more transactions and thus processing them faster (more below)
- Bitcoin Cash processes transactions faster
Unlike Bitcoin which can take hours or even days (weeks in some cases) to process, Bitcoin cash usually takes less than half an hour to process the whole transaction.
Many people think that Bitcoin and Bitcoin Cash are two titans fighting each other.
For the practical and daily use Bitcoin cash is better asset as it's much cheaper and faster.
However, Bitcoin is the original cryptocurrency and thus is the most adopted cryptocurrency in the world.
Not only that, it can as well make bigger profits and margins in the long term of view.
Bitcoin Cash could become main currency for transactions due to it's low fees and fast processing times.
While Bitcoin could still be used to store your value and make some profit in the long term of view.
The decision is up to you and you should decide yourself whichever coin you prefer more.
In simple words, Bitcoin is a coin that's better for long term and Bitcoin Cash is better coin for daily fund movements and short term investments.
Important note: Always do further and deeper research on your own and always consult your financial decisions with financial investor before investing. Also keep in mind that it's important for you to keep your currencies in secure wallets (digital or hardware) such as Ledger (Hardware), Trezor (Hardware) and Coinbase (Digital).