Bitcoin, the most popular cryptocurrency, got divided into Bitcoin and Bitcoin Cash in August 2017. Since then, Miners could opt between Bitcoin and Bitcoin Cash mining as per their will. The two cryptocurrencies are remarkably different, and understanding the distinction helps the users and miners make a wise choice. The differences exist in transaction speed, liquidity, block size, security, and real-time usability, which has contributed significantly to bringing Bitcoin Cash into existence successfully.
The SegWit (segregated witness) technology curates the amount of data that needs to be verified in each block smaller by eliminating the signature data from the block of data that has to be processed in each transaction. After that, this data is attached to an extended block. Signature data accounts for 65 percent of data processed in each block. Therefore, this was not an ideal technological advancement. Due to this issue, conversations started to surface on doubling the size of the blocks from 1MB to 2MB. This led to the increase of the size of Bitcoin to 1.305 MB in February 2019, surpassing previous sizes. This limitation of SegWit2x became a concern, and developers created a new currency known as Bitcoin Cash (BCH). Bitcoin is like investing in gold, whereas Bitcoin Cash is defined as a means of exchange.
A larger block size helps in enhancing Bitcoin’s scalability. This led to Bitcoin Cash which was starred by Bitcoin miners and developers who were cautious about the future of cryptocurrency and its scalability component. They considered that SegWit2x failed to address the scalability factor. In August 2017, the developers developed ‘hard fork’ by creating a new currency, Bitcoin Cash.
The original blockchain of Bitcoin Cash is Bitcoin only. The foremost difference between Bitcoin and Bitcoin Cash is the transaction processing time. The Bitcoin network is slow, whereas Bitcoin Cash creates faster transactions. Not only the waiting time is short, but the transaction fee is also lower while using Bitcoin Cash.
BCH has the same blockchain specifications as Bitcoin, including one very distinct function from Bitcoin, which is an increase in the block size of 8MB to accelerate the verification process. Therefore, it can process transactions more quickly than the Bitcoin Network.
The drawbacks of BCH, however, are that security could be compromised relative to the BTC. Bitcoin to date still stands as the popular cryptocurrency in the world and has the largest market capitalization. Therefore, BCH users may realize that real-world and liquidity usability is much lower than BTC.
The debate about the future of Bitcoin cash does not show any signs of being resolved and coming to a common consensus. BTC is limited by transaction processing time. This challenge has caused disagreements within the Bitcoin mining and developing communities. BCH has become one of the top cryptocurrencies and is proving to be accepted by many merchants for daily transactions. However, BACH’s liquidity is nowhere near to BTC.
There isn’t one cryptocurrency that is overpowering the other. But the hostility between the two doesn’t pose a huge concern to cryptocurrency users because both stem from the cryptocurrency ideology. The only thing to ponder while investing is that each is a different cryptocurrency with some similar and unique factors. It isn’t a one size fits all ideology. It depends on the usage and the transactions. For instance, if you would like to send and receive many small transactions quickly and effectively, BCH is worth investing in. If you want to make an investment in any of the cryptocurrency just to make massive profit then Bitcoin Pro is the perfect platform for you. Check out Bitcoin Pro Reviews on google or any review platform to know more about this amazing platform.
In 2018, Bitcoin recorded 44.5% of the entire cryptocurrency ecosystem, which gives them the upper hand. The debate continues that Bitcoin Cash provides better scalability and transactions without breaching security. But when it comes to reliability and trustworthiness in market capital, the original BCT (Bitcoin Network) takes the win.
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