The original Bitcoin BTC , while revolutionary, suffered from scalability issues. Transaction processing speed was also a big problem with Bitcoin. Bitcoin is also not very practical for use as currency in the real world either. By August , many Bitcoin miners, developers, and online community members of the Bitcoin ecosystem voted to initialize a hard fork of the original Bitcoin blockchain.
This hard fork initialization from the original Bitcoin blockchain created Bitcoin Cash. Bitcoin Cash is a P2P electronic currency system that improves upon its predecessor dramatically. Bitcoin Cash electronic payments can be sent person-to-person with enhanced privacy, fast transaction rates, and relatively minimal fees. When you use Bitcoin Cash, there is no centralized, government-sanctioned monetary system or central bank policy that dictates its use. The most optimum way to explain Bitcoin Cash may be to describe its hard fork beginnings briefly.
The Bitcoin Hard Fork Bitcoin was first conceptualized in by Satoshi Nakamoto as an alternative financial theory in the aftermath of the global financial crisis. It was first released in January Nakamoto may be a pseudonym or an alias representing a team of developers. The blockchain, a kind of public ledger that processes, verifies, and records transactions, makes Bitcoin a decentralized technology.
Anyone utilizing a computer can mine, buy, or exchange the Bitcoin cryptocurrency. However, the Bitcoin blockchain and ecosystem network is notoriously slow. Each Bitcoin block is 1MB. So, the more people who try to transact on it, the slower the entire blockchain becomes. The blockchain network can process about seven transactions per second. Visa can process 65, transactions every second. The Bitcoin ecosystem community erupted into a cryptocurrency civil war over the processing speed issue.
One faction voted to initialize a hard fork of Bitcoin to improve processing speeds, creating Bitcoin Cash in the process. A Bitcoin Cash block size is 8MB. The larger sized blocks enable faster verification, transaction, and overall processing fees. Bitcoin Cash BCH is a cryptocurrency that shares many of the same characteristics as Bitcoin BTC yet also integrates a number of changes and features that set it apart.
Bitcoin Cash is a decentralized peer-to-peer electronic cash system that does not rely on any central authority like a government or financial institution. As such, it represents a fundamental redesign of the very nature of money.
The core features of Bitcoin Cash are:. More philosophically, these two use cases combine with the decentralized and open nature of the protocol to make Bitcoin Cash the network a method for supporting and enhancing global economic freedom. The total supply of Bitcoin Cash will never exceed 21 million coins.
This is written into the code that defines the Bitcoin Cash protocol. As a decentralized network, Bitcoin Cash users ultimately decide how the protocol evolves - and since it is not in the interests of participants to dilute their holdings by changing the protocol, the million-coin limit will almost certainly remain in place forever.
The rate that new coins are added to the circulating supply gradually decreases along a defined schedule that is also built into the code. The issuance rate is cut in half approximately every four years.
At that point 18,, of the 21 million coins The fourth halving, in , will reduce the issuance to 3. By comparison, the supply of gold, although limited, is nevertheless subject to the forces of supply and demand. As the price of gold rises, more gold miners are incentivized to search for gold. The leads to an increase in the supply of gold, which places downward pressure on the price. Bitcoin Cash enables peer-to-peer payments between individuals - just like cash, but in the digital realm.
Critically, fees for sending Bitcoin Cash typically amount to less than a penny per transaction, and settlement occurs near instantly, regardless of the physical location of participants. This makes Bitcoin Cash useful for not only remittances and cross-border trade, but also for daily transactions like buying groceries.
Since the fees and transaction times are so low, Bitcoin Cash is also effective for micro-transaction use cases like tipping content creators and rewarding app users. Economic freedom is the ability for individuals to freely acquire and use personal resources however they choose, both independently and in cooperation with others.
It is a vital component of human dignity and a fundamental human right. Money - as a vehicle that can be used for both storing and exchanging value - is a central tool for enabling economic freedom. Bitcoin Cash provides, on an opt-in basis, an alternative form of money that supports economic freedom. Unlike national currencies, Bitcoin Cash integrates strong protection against 1 monetary confiscation, 2 censorship, and 3 devaluation through uncapped inflation. It was created on August 1 after participants in the Bitcoin ecosystem were unable to agree on methods for scaling the cryptocurrency.
Since transactions consist of data, a larger block size enables more transactions to be included in each block, resulting in a higher throughput. The Bitcoin protocol had for years limited the size of each block to 1MB. As the number of Bitcoin users grew, competition for the limited block size gradually led to higher transaction fees and prolonged settlement times. Bitcoin is not a static protocol. In other words, people decide what Bitcoin is. Faced with the challenge of scaling Bitcoin, one side felt the need to maintain 1MB block sizes.
The other side wanted to increase the block size, allowing for more transactions per block. This instant upgrade was seen as a simple method to keep transactions fast and reliable, and fees low. Read more: What is Bitcoin? Since forking in , the multiple independent teams of developers working on the Bitcoin Cash protocol have brought a number of innovations aimed at improving the usability of Bitcoin Cash as a peer-to-peer electronic cash system that supports economic freedom.
These innovations, which set Bitcoin Cash apart from Bitcoin, are summarized below:. The larger block size increases the volume of transactions that the Bitcoin Cash network can process on chain. While Bitcoin typically processes between transactions per second, Bitcoin Cash has the capacity to process as many as transactions per second.
This helps to reduce the cost per transaction and increase transaction speed and reliability. Bitcoin Cash transactions typically cost less than a penny. Bitcoin Cash developers can use smart contract languages like Cashscript to enable more complex functions than the basic transactions that are possible on Bitcoin.
Other use cases include private payments with tools such as CashShuffle and CashFusion. Using the Simple Ledger Protocol , developers can issue new tokens that live on the Bitcoin Cash blockchain similar to how ERC tokens live on the Ethereum blockchain. This enables people to send and receive USDT for pennies per transaction using a non-custodial digital wallet like the Bitcoin. The key feature of NFTs is that they are digital tokens which are distinguishable from each other.
This enables a wide range of potential use cases, from digital artwork marketplaces to tradeable in-game items. The lack of replace-by-fee in the Bitcoin Cash BCH protocol makes Bitcoin Cash more secure, as unconfirmed transactions are irreversible. It also enables near-instant transactions of small amounts. With the May Bitcoin Cash protocol upgrade, the unconfirmed chained transaction limit which was previously set at 50 was removed and double-spend tests were introduced.
This is a digital signature scheme that allows for more complex signing capabilities. Transactions that adopt Schnorr signatures consume less space, making them less expensive. Although currently supported by the Bitcoin Cash protocol, Schnorr signatures have yet to be widely adopted by wallet providers.
This, however, is not true. The main advantage of Bitcoin Cash is that it is cheaper and faster to use. This is because it is more scalable, meaning that more people can transact on the blockchain at any given time. Its development team is quick to implement solutions that make the blockchain more scalable. Which gives it great future potential for adoption and use.
It is also cheaper to move around between exchanges. Whenever its price surges, it is a great trading asset against Bitcoin and a solid investment to hedge against Bitcoin, should Bitcoin lose its market dominance one day. Note : Nothing in this article is financial advice!
You should always consult a financial advisor before investing. Also, always choose reliable cryptocurrency wallets, such as Ledger Nano S , Coinbase and Trezor , to keep your coins secure! Bitcoin Cash does not have as much investor confidence as Bitcoin. This has a lot to do with the fact that this coin is much newer than Bitcoin.
Bitcoin Cash mining is relatively the same as mining Bitcoin. This means that someone who mines Bitcoin Cash makes much less profit than someone mining Bitcoin with the same equipment. For this reason, miners are not as quick to mine Bitcoin Cash. As the original cryptocurrency, Bitcoin is the base currency of the entire sector.
It is what all other cryptocurrencies trade against as well as ETH, most of the time and is tradable on most exchanges. Bitcoin is the most popular and has the most trading pairs with other cryptocurrencies. As of 23 rd March , Bitcoin makes up The disadvantages of Bitcoin when compared to Bitcoin Cash mainly regard the scalability issues facing Bitcoin.
Bitcoin is older , slower and costs a lot more per transaction. It is likely that as the sector grows, Bitcoin will continue to lose its dominance to these other coins. Another disadvantage is that the core development team of Bitcoin is not united as good as other crypto teams, like that of Ether, for example. They appear to be divided as a group and lacking clear leadership. This makes the implementation of scaling solutions more difficult to agree on and implement to the network — not good at all!
One of the most popular exchanges to buy both Bitcoin and Bitcoin Cash is Coinbase. On this platform, you can use fiat to buy popular cryptocurrencies including Bitcoin and Bitcoin Cash through your credit card, bank account and more.
Unfortunately, Coinbase is only available in 32 countries:. Learn what is the best time to buy Bitcoins, and when to sell Bitcoin, too! Learn about the the most secure vaults in the world, and how you can acquire one of such vaults yourself! Learn how to convert Bitcoin to cash on Binance P2P, and start exchanging today! Many people are under the impression that Bitcoin Cash VS Bitcoin is a war, and that one should be better than the other.
For practical reasons, Bitcoin Cash is a faster and cheaper asset to use for transacting on the blockchain. But Bitcoin , being the original cryptocurrency , is the most adopted and currently the greatest store of value in the cryptomarket. This leads me to believe that both these coins can remain as staples in the industry as it evolves and matures.
BCH can become the main tool for transactions and moving money around as more users adopt it. BTC can continue to be used as a store of value that is considered the gold of digital currency. Both stand to grow in value and adoption over time, making them worthy investments for any investor to look into and consider. Now that you know the differences between these two coins, you can better decide how you want to invest in them and how you will use them.
For example, you can invest into Bitcoin Cash to use it as your main form of currency to transact with. However, you could invest into Bitcoin the way you would invest in gold - for investment benefits. The question is, which is it that you prefer? And what for? Do you prefer Bitcoin as an investment but Bitcoin Cash as a usable coin? Let me know! Important note : Always do further, independent research, and always consult a financial investor before investing. We do not publish biased feedback or spam.
So if you want to share your experience, opinion or give advice - the scene is yours! You can purchase Bitcoin Cash and Bitcoin at reliable cryptocurrency exchanges , such as Coinbase and Binance , or choose an even easier way to buy these cryptocurrencies with your credit card - Simplex. If you want to try out software wallet first, choose Coinbase.
Picking out the best crypto exchange for yourself, you should always focus on maintaining a balance between the essential features that all top crypto exchanges should have, and those that are important to you, personally. That said, many users believe that Coinbase is one of the simpler exchanges on the current market.
The exchange platform i. Binance acts as a middleman - it connects you your offer or request with that other person the seller or the buyer. When considering cryptocurrency exchange rankings, though, both of these types of businesses exchanges and brokerages are usually just thrown under the umbrella term - exchange. This is done for the sake of simplicity. No, definitely not! While some of the top cryptocurrency exchanges are, indeed, based in the United States i. Coinbase or Kraken , there are other very well-known industry leaders that are located all over the world.
While there are many reasons for why an exchange would prefer to be based in one location over another, most of them boil down to business intricacies, and usually have no effect on the user of the platform. Buy Bitcoin Now. By Laura M. All the content on BitDegree. The real context behind every covered topic must always be revealed to the reader. Feel free to contact us if you believe that content is outdated, incomplete, or questionable.
Laura M. Bitcoin Cash VS Bitcoin - a war of two crypto titans! Table of Contents 1. Bitcoin 2. A Fork 3. Bitcoin Cash 4. Verified Staff Pick. When you use Bitcoin Cash, there is no centralized, government-sanctioned monetary system or central bank policy that dictates its use. The most optimum way to explain Bitcoin Cash may be to describe its hard fork beginnings briefly. The Bitcoin Hard Fork Bitcoin was first conceptualized in by Satoshi Nakamoto as an alternative financial theory in the aftermath of the global financial crisis.
It was first released in January Nakamoto may be a pseudonym or an alias representing a team of developers. The blockchain, a kind of public ledger that processes, verifies, and records transactions, makes Bitcoin a decentralized technology. Anyone utilizing a computer can mine, buy, or exchange the Bitcoin cryptocurrency. However, the Bitcoin blockchain and ecosystem network is notoriously slow. Each Bitcoin block is 1MB. So, the more people who try to transact on it, the slower the entire blockchain becomes.
The blockchain network can process about seven transactions per second. Visa can process 65, transactions every second. The Bitcoin ecosystem community erupted into a cryptocurrency civil war over the processing speed issue. One faction voted to initialize a hard fork of Bitcoin to improve processing speeds, creating Bitcoin Cash in the process. A Bitcoin Cash block size is 8MB. The larger sized blocks enable faster verification, transaction, and overall processing fees. While the original Bitcoin is more suitable for investment, Bitcoin Cash is the decentralized cryptocurrency variation of fiat currencies.
How relevant is it compared to competitors? In terms of popularity, Bitcoin Cash currently ranks in position 21 out of the thousands of cryptocurrencies. This compares with a seven day change of Trading volume indicates how many units of a currency are being bought and sold on specific exchanges. High trading volumes are likely to drive more on-chain activity, for example when people deposit and withdraw funds. It can be a good indicator of the general interest in the cryptocurrency.
Bitcoin Cash BCH — это тип цифровой криптовалюты, позволяющий создавать современный актив с помощью транзакций между самостоятельными узлами майнинга и других. Bitcoin Cash — криптовалюта, форк биткойна, отделившийся от него. Разветвление от основной ветви произошло 1 августа года. В ноябре года произошло разделение Bitcoin Cash на несколько веток. Bitcoin, which was invented by the pseudonymous Satoshi Nakomoto remains a separate cryptocurrency. Unlike Bitcoin (BTC), Bitcoin Cash aims to scale so it can.