Monday, December 16, 2019

What’s the Difference Between Bitcoin and Bitcoin Cash?

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

Everyone who is new to the cryptocurrency world sometimes mistakes about Bitcoin (BTC) and Bitcoin Cash (BCH). In fact, on some exchanges, on the pages where Bitcoin transfer is to be made, they fix in a notice informing users not to send Bitcoin Cash to Bitcoin addresses to avoid loss of funds. That is to show how often people get these two cryptocurrencies frequently mixed up. But then, you might have asked yourself, ‘What’s the difference between Bitcoin and Bitcoin Cash?’

BCH Forked From BTC

Bitcoin is the pioneer cryptocurrency of the digital assets world. It was created in 2008 and launched subsequently early 2009 by Satoshi Nakamoto, a person/group of people whose true identity is yet to be revealed. Bitcoin was launched in response to the global economic crisis where the value of currencies all over the world dropped. Satoshi, understanding that the problems of fiat currency would remain unchanged as it has been for decades, launched Bitcoin. He stated that Bitcoin would be a currency with a supply that would not be able to be controlled by anyone or any government.

bitcoin

Bitcoin has since its launch experienced a series of price drops and spikes. The price of a singular bitcoin was $0.001 as at the time of its launch. Today, it is worth about $4,000 with its all-time high topping $19,753 on December 17, 2017. Bitcoin is referred to as the reserve currency of the cryptocurrency market. For those who want to invest in Initial Coin Offerings (ICOs), most buy Bitcoin. Investors who wish to purchase altcoins (other coins apart from Bitcoin), buy Bitcoin first to exchange into those cryptocurrencies. It remains the most dominant and liquid currency in the cryptocurrency market.

bitcoincash

Bitcoin Cash, on the other hand, is a hard fork of Bitcoin. It was created in 2017 when the hard fork was activated on August 1 of the same year. Bitcoin Cash was created because some crypto developers felt the need to increase bitcoin’s block size limit. Basically, Bitcoin Cash was designed to be a better, faster version of Bitcoin as a payment method. During the period prior to Bitcoin Cash’s formation, fees on the Bitcoin network were getting higher and Bitcoin investor, Roger Ver, among others, pushed for a split.

Bitcoin price was speculated to fall around that period, as demand was anticipated to be split between Bitcoin and Bitcoin Cash since anyone who owned Bitcoin would own an equal amount of Bitcoin Cash in terms of units. Trading for Bitcoin Cash began at the price of $240 while Bitcoin was traded at $2,700.

Bitcoin Cash received support from several exchanges, and its price peaked at around $3,700 after being listed on an American exchange, Coinbase. In November 2018, Bitcoin Cash further split into two blockchains with the first Bitcoin Cash referred to as Bitcoin ABC, and the fork referred to as Bitcoin SV. The push for the fork was supported by Craig Wright, a man who has claimed to be Satoshi Nakamoto.

Future of Bitcoin and Bitcoin Cash

Bitcoin Cash and Bitcoin both serve the same purpose and share the same vision. Both aim to be massively adopted as payment methods in the nearest future. Bitcoin Cash, however, possesses an edge here as it can handle 68 transactions per second as compared to Bitcoin’s 3.3 to 7 transactions per second speed.

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