BITCOIN VS BITCOIN CASH: WHAT’S THE DIFFERENCE?
Those who haven’t studied digital currencies much might think that Bitcoin and Bitcoin Cash are the same, but they are actually two different forms of cryptocurrency. The former was the first cryptocurrency and it was created many years ago by an anonymous programmer who goes by the pseudonym, “Satoshi Nakamoto“. It took a few years for that first digital currency to begin capturing attention, although it didn’t take long for a few others to start arriving on the scene. Bitcoin Cash was created in August 2017 by what enthusiasts refer to as a “hard fork.” This occurs whenever one cryptocurrency splits into two, creating a second one distinguishable from the first. Essentially, Bitcoin’s code was changed, which caused a split and the creation of a second cryptocurrency. Bitcoin Cash isn’t even the only one created by a fork from the first cryptocurrency to attract mass attention. One sister digital currency, if you will, is Bitcoin Gold, which was created by a fork in November of 2017.
What Makes Bitcoin Cash better than Bitcoin?
After a lack of consensus among Bitcoin’s developers as well as miners, the cryptocurrency witnessed a hard fork in the month of August in 2017. This dispute was nothing but the Bitcoin miner group’s attempt to control the hash power used for mining the cryptocurrency. While Bitcoin has taken control away from the central banks and governments, it has helped miners in evolving their capabilities. As a result, the developers are now interested in keeping the entire mining group at bay. This has further resulted in a war between miners and developers with regard to controlling the Bitcoin mining process. In this article, Platinum Crypto Academy will tell you what makes Bitcoin Cash better than Bitcoin, specifically from an investment point of view.
Currently, there’s a war between Bitcoin and Bitcoin Cash and the dropping pair prices are certainly indicating that a lot is happening within the Bitcoin space. In fact, the entire matter is related to capacity, which has affected the transaction timings of Bitcoin that has slowed down to almost ten minutes. Following this, both developers and miners are battling with each other for addressing the issue.
The Miners & The Developers
The Bitcoin miners are looking to enhance the blockchain’s capacity and transaction times. On the other hand, the developers are looking to incorporate certain changes within Bitcoin Business, while also removing the hash power feature that is controlled entirely by the miners. This is one of the biggest reasons why Bitcoin Cash has been introduced after the hard fork.
SegWit2x and Bitcoin
Mining companies and pools representing around 80-90 percent of Bitcoin computing ability voted in favour of incorporating a technology called segregated witness or SegWit2x. This technology minimises the data required for verification in every block by simply eliminating signature data from within the data block. However, Bitcoin miners were not in favour of SegWit2x, as they felt that the technology didn’t solve the scalability issue appropriately. That’s precisely why they decided to launch Bitcoin Cash.
Scaling for Bitcoin
The problem related to scaling as well as enhancing the speed of the transaction verifying procedure can be solved in two ways.
The first option is by making the data amount required for verification in every block smaller, thereby making Bitcoin transactions cheaper as well as quicker.
The second option is to increase the size of the data blocks, allowing for processing of increased amounts of information at any given point of time. Bitcoin Cash has resulted in an 8MB increase in the block size and has further accelerated the verification procedure.
Which is better: Bitcoin Vs Bitcoin Cash
When it comes to determining whether Bitcoin Cash is better than Bitcoin or vice-versa, the answer would entirely depend on the miner or user’s outlook with respect to the cryptocurrency. However, one shouldn’t forget that Bitcoin Cash offers quick transaction speed as well as low fee in comparison to Bitcoin. Besides, Bitcoin certainly faces scalability issues whereas Bitcoin Cash has the ability to scale up and surpasses the traditional systems of payments like Visa. This could be one of the major reasons why crypto investors would value Bitcoin Cash over Bitcoin. If you’d like to find out which other cryptocurrencies may surpass Bitcoin, then don’t forget to book a consultation with one of our Master Crypto Traders below!