Bitcoin vs. Bitcoin Cash: Understanding the Difference
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Despite having similar-sounding names, Bitcoin and Bitcoin Cash are two entirely different cryptocurrencies in many aspects. Contrary to popular belief, Bitcoin Cash is not a low-cost alternative to Bitcoin either. So, how is Bitcoin different from Bitcoin Cash?
In this blog post, Liquid wants to discuss some of the significant differences between Bitcoin and Bitcoin Cash. It’s crucial that you understand the unique characteristics of Bitcoin and Bitcoin Cash before you invest in either of these similar-sounding cryptocurrencies.
So, without any further ado, let’s jump right into it.
Bitcoin Vs. Bitcoin Cash: The Introduction
Bitcoin, or BTC as we know it, is the world’s first popular cryptocurrency. Created in 2009 by a mysterious entity known as Satoshi Nakamoto, Bitcoin is a digital currency powered by a public ledger called the Blockchain. Since its inception, Bitcoin has grown spectacularly in terms of popularity and value. At the time of the first-ever transaction in 2009 (bloc 170), one Bitcoin was worth $0.0001. At the time we are writing this blog post, the same old Bitcoin is worth more than $45,000! Can you believe it?
On the other hand, Bitcoin Cash or BCH is a cryptocurrency created just recently in 2017. The creation of Bitcoin Cash is the result of community efforts around finding an alternative to Bitcoin that was fast becoming an unsuitable choice for mass transactions. However, Bitcoin Cash is a fork (means a copy of the source code) of the original Bitcoin project. The community aimed to improve the transaction speeds and scalability of Bitcoin. Ultimately, they gave birth to a whole new and different cryptocurrency altogether. In 2018, Bitcoin Cash was split into two Blockchains: Bitcoin Cash ABC and Bitcoin SV.
Advantages of Bitcoin over Bitcoin Cash
Here are some key reasons you may want to stick to the original gangster: Bitcoin.
- A Larger Community
Bitcoin is by far the largest cryptocurrency in market capitalization and the number of investors. Thanks to the spike in its value in recent years, Bitcoin has emerged as a household name in various global markets. On the other hand, Bitcoin Cash largely remains undiscovered territory for a big chunk of crypto enthusiasts. Some people often falsely imply that Bitcoin Cash is a carbon copy of the original Bitcoin project.
- Security Concerns
Even though the underlying code of Bitcoin and Bitcoin Cash is essentially the same, Bitcoin Cash has undergone certain modifications to the original codebase to achieve better scalability and faster transactions. These changes are often subject to security concerns since the BCH community has fast-tracked the transactions’ verification process.
Besides, Bitcoin has showcased unprecedented growth in terms of value. Some experts believe a price of one Bitcoin could reach as high as $1 million by the end of 2021. On the other hand, Bitcoin Cash is yet to show such promising growth.
Advantages of Bitcoin Cash over Bitcoin
Here are the significant advantages of moving to/or investing in Bitcoin Cash.
- Easily Manageable
Unlike Bitcoin, volatility may not be the biggest concern when dealing with Bitcoin Cash. Because its value hasn’t crossed $1000 yet, most people can afford it. That is one of the reasons why Bitcoin Cash exists in the first place, in addition to scalability and faster transactions, of course.
- Quicker Transactions
Bitcoin Cash has an increased block size of 8MB, which is eight times higher than Bitcoin. Meaning, Bitcoin Cash transactions are usually faster than Bitcoin, making it a more suitable choice for day-to-day transactions. Furthermore, you can transact in Bitcoin Cash without incurring high fees.
Thanks to its off-the-charts value, massive popularity, and conventional design, Bitcoin transactions often suffer scalability issues. On the other hand, Bitcoin Cash is a scalable platform. Besides, developers behind Bitcoin Cash provide some easy-to-use implementation tools to set it up as a payment method. Thanks to its widespread acceptance, Bitcoin Cash is already listed on some leading cryptocurrency exchanges worldwide, including Liquid. Guess what? GAS fees are minimal even during a price surge.
Bitcoin continues to grow amid the on-going bull run fuelled by the Elon Musk-led Tesla pouring in $1.5 billion worth of investment. Experts believe BTC will continue to gain in the years to come. However, the BTC community would have to address low transaction speeds and the lack of scalability.
Despite being valued so little compared to the mighty Bitcoin, Bitcoin Cash is projected to grow in the upcoming years. At the same time, the community tries to improve its transaction speeds. It’s primarily why more people are optimistic about the benefits of investing in Bitcoin Cash in the long-term.
Buy Bitcoin or Bitcoin Cash Instantly on Liquid
Sign up for an account on the Liquid website or mobile app. You will be able to buy Bitcoin or Bitcoin Cash online in just a matter of minutes. One of the easiest ways to buy cryptocurrencies is through Liquid’s Quick Exchange feature. Buy with your visa card or swap with any other cryptocurrency listed on Liquid.