Before getting into our topic, we need to explain the difference between bitcoin (BTC) and bitcoin cash (BCH). We can safely say that there is a war raging between both these coins at the moment. Of course, that competition is just improving the financial world. As a matter of fact, Bitcoin cash originated from bitcoin. Once upon a time it was a part of the Bitcoin blockchain. In the crypto circles bitcoin cash is known as a “fork” of bitcoin. We will explain in detail what a “fork” is below. You can learn more about the blockchain technology right HERE.
Additionally, before mentioning the difference between these two coins, we will talk a little bit about their history. Many experts believe that BCH is a better digital asset because of several advantages it has. However, we will cover all of that below. For total novices in the crypto world, we suggest heading over to our Bitcoin Dictionary section and learning about the basics. The Crypto News section, on the other hand, will give you weekly updates on digital coins which is very beneficial to experienced crypto users. Nevertheless, first we need to cover the difference between bitcoin and bitcoin cash.
Bitcoin was the first ever cryptocurrency and for many years it wasn’t very known. It is just like any other real currency. You can use it to buy, sell and trade for goods, services, investments and more. The blockchain technology that it’s made of prevents it from being counterfeited. It also means it is not owned, issued or controlled by any one single group or party. Today, Bitcoin is the most valuable cryptocurrency on the market. Other currencies are attempting to outrank Bitcoin and reduce its dominance over the digital-coin sector; however, only few are getting close. Bitcoin Cash may be an exception to that due to the difference between Bitcoin and Bitcoin Cash!
On the other hand, bitcoin cash was created much later. BCH is a cryptocurrency with its own blockchain. It works just like a digital currency and new BCH is created through mining. It was created at the end of 2016, making it much younger than Bitcoin. However, as we said above, it was “forked” from the BTC. Basically, the creators of BTC wanted to make changes to bitcoin but not all of them could agree on the details. For that reason, some of them “forked” bitcoin so they could create a new version of the same code but it would hold their own modifications. That’s how Bitcoin Cash was born.
Here are the changes they made:
- Cheaper transfer fees (around $0.20 per transaction), meaning, transactions in BCH will save you more money than using BTC.
- BCH has faster transfer times. So, you don’t have to wait the 10 minutes it takes to verify a Bitcoin transaction!
- BCH can handle more transactions per second. This means that more people can use BCH at the same time than they could with BTC.
As we promised, we will also explain what a “fork” is in the crypto world. Basically, a fork is created when the original code of a blockchain is updated but only some of the nodes (computers) on the blockchain accept the update. So, they all start as bitcoin but then the implemented changes make them something else. There are many bitcoin forks out there; however, none are as popular as Bitcoin cash. Anyone holding the original coin at the time it was forked will automatically get the forked version of the coin they were holding. So, when Bitcoin forked to Bitcoin Cash, someone who had 10 BTC received a certain number of BCH with the same value as their 10 BTC.
Difference Between Bitcoin and Bitcoin Cash
Finally, we get to the part where we will explain the major differences between these two coins. The first and most important one is the size of the block. Bitcoin Cash increased it’s block to 32 MB while Bitcoin still has it’s initial 2 MB. This basically affects the miners who are mining both coins. BCH’s bigger block means that you will mine a larger amount of BCH in a shorter period of time than you would BTC. So basically, Bitcoin’s much higher price is what’s keeping it at the top. Because, if BCH comes closer to it in price, it would be a much more viable crypto asset.
The next very important difference is the transaction volume per day. For instance, regular banks process over 100 million transactions per day. Let’s take Visa for example, as they do something over 150 million transactions a day. If we reduce that to seconds, statistics show that Visa is doing over 24,000 transactions per second. Bitcoin, on the other hand, can handle about 7 transactions per second. Processing a transaction takes 10 minutes on average. Now, as Bitcoin users go up, waiting times are lengthened because there are more transactions to process without a change being made in the technology responsible for processing them. The changes made to Bitcoin cash allow much faster transactions and there is no need to wait for those 10 minutes.
Last but not least, we have to mention the following as a major difference between these two coins. Bitcoin has been on the market for much longer. Additionally, it has a cult like follower base, a huge community which supports it in every step. Even people who have no clue about cryptocurrencies have heard about Bitcoin while not many know about Bitcoin cash. The price of BCH is around 10-15% of the price of Bitcoin, while the cost for mining it is the same as mining Bitcoin. Basically, people who mine Bitcoin cash make 50-60% less profit than the ones mining Bitcoin with the same equipment.
This is the main reason why BCH is still far behind BTC even though the technology behind it is much more advanced. However, we have to note that BCH has been on the market for only a short period of time. If it continues with this approach and gets many investors in the future, BCH could hope to pass BTC several years down the road. This is, of course, if Bitcoin developers don’t make much needed changes to their product.
We hope that you now know the basic differences between Bitcoin and Bitcoin Cash. For more bitcoin topics and guides, you can always check our Crypto Information section. The Coinbet24 bitcoin sports betting & online casino gives you an opportunity to place bitcoin bets. You can use your BTC to make bets anytime.