Do you know Bitcoin Cash (BCH) was originated from Bitcoin? Yes, it’s true; Bitcoin Cash was a part of Bitcoin Blockchain. It is a modified and advanced code version of Bitcoin. Technically speaking Bitcoin Cash is a fork of Bitcoin.
What is a Fork?
There are some Bitcoin forks available like Bitcoin Gold, Bitcoin Private, and Bitcoin Cash. But no one is popular like Bitcoin Cash. Now the question is How the fork is created. A fork is created when a block of code is updated and it is acceptable on some computers called nodes. In this way, Bitcoin Cash is also a fork of Bitcoin Blockchain.
A fork is like Bitcoin Cash also works as a separate Blockchain. When fork comes the original Blockchain remains the same and the updated code gets separated from the original Blockchain and it also acts as a full Blockchain.
When a fork comes anyone holding the original Blockchain gets some part of the new fork according to its value. For example, when Bitcoin is forked to Bitcoin Cash a person holds 20 Bitcoins have automatically got the same value of Bitcoin Cash.
Now before proceeding to the difference between Bitcoin and Bitcoin Cash let us know what is Bitcoin and Bitcoin Cash.
What is Bitcoin (BTC)?
Bitcoin is the first and most trusted cryptocurrency in the world and for many years it was not very popular. Like other currencies Bitcoin is not a physical currency, it is a virtual currency. If we talk about other currencies like Rupees, US Dollars, British Pound, etc. these currencies are issued by governments and managed by banks so these currencies are centralized by the government and Banks.
On the other side, Bitcoin is not verified by any central authority like Government and Banks. The transactions of Bitcoin are verified by computers which can be owned by anyone, so it is decentralized.
On the Blockchain, all the transactions are stored in a block. So it is called a Blockchain. The computers on the Blockchain verify each block of the transaction once by solving some complicated mathematical problems. When the problem gets solved the new Bitcoin is formed and it is given to the computer which solves the problem. This entire process is called mining.
The total number of bitcoins that could be mined is 21 million. And at present 16 million Bitcoins are mined. After every 4 years, the number of Bitcoins mined gets cut in half. So it will take a very long time when 21 million Bitcoins will be reached.
What is Bitcoin Cash (BCH)?
Bitcoin Cash is a fork of Bitcoin. It was created in 2016 by Bitcoin developers because they want some changes in Bitcoin. The bitcoin community does not agree with these changes in Bitcoin. So some of the developers of Bitcoin forked Bitcoin Cash by creating a new version of Bitcoin code. Like Bitcoin, Bitcoin Cash could be mined with BCH mining.
The block of BCH is eight times bigger than Bitcoin, So it is much faster than Bitcoin.
Bitcoin Cash (BCH) vs Bitcoin (BTC)
The main changes that make the difference between these two cryptocurrencies are:
- Transfer Time: Bitcoin Cash has a faster transfer than Bitcoin. Now you don’t need to wait for 10 minutes to take a transaction like Bitcoin.
- Low Transfer Fees: Bitcoin Cash has low transfer fees (approx. 0.20$ per transaction) as compared to Bitcoin. Whereas in a BTC transaction it will cost you approx. 1$ per transaction. So making transactions in BCH can save you a lot of money as compared to BTC.
- Number of Transactions: BCH can handle more number of transactions per second as compared to BTC. It means more people can use Bitcoin Cash for transactions at the same time.
Bitcoin Cash vs Bitcoin: In terms of Prices
The price of cryptocurrencies depends on how much they are used, adopted, and demanded by people? Both currencies have different price ranges according to their usage and demand. These currencies are volatile so their prices increase and decrease according to market demands.
If we compare the price of these currencies then the price of Bitcoin is much higher than Bitcoin Cash. BCH is less than one year old. Most people trust Bitcoin more than Bitcoin Cash. The main reason is less adoption of BCH as compared to BTC. It is still in the stage of adoption and realization of its place in the market. People think BCH might take a good portion of the market because it has solved many problems like transaction time, and cost as compared to BTC.
Which one is Better BCH or BTC?
Bitcoin has much investor confidence as compared to Bitcoin Cash. BCH is the much newer coin in the market so its adoption rate is much lower as compared to BTC. The price is BCH is 85-90% lower than BTC. If we talk about which one is better then we can easily say BCH is better than BTC.
Conclusion: Both cryptocurrencies are better for investment according to the above facts. We can invest in both according to our usage and trust. But if you want to make transactions then BCH is much better than BTC due to its fast transfer rate and lower transfer cost as compared to BTC.
I am Pawan Kashyap currently living in Amritsar. I always try to grab new things from the cryptocurrency market. From my observations and trends in the market, I always try to provide the best and accurate information in the form of articles from this blog. Follow us on Facebook, Instagram, and Twitter to join us.
