Personal Finance

Difference Between Bitcoin And Bitcoin Cash Explained

There are several cryptocurrencies at present and Bitcoin is one of the most popular coins. But people often get confused between Bitcoin and Bitcoin Cash. They are completely two different cryptocurrencies. These two have several technology differences and functional differences as well. The token names BTC and BCH are also so similar that they can be confusing for anyone. 

As we already said, there are several differences between these two coins. As time passed-by, the number of differences between Bitcoin and Bitcoin Cash kept increasing. The developers of these two coins worked on different aspects and so the number of differences now are too many. Now people can understand that these two are entirely different coins. 

If you are still not sure what these two cryptocurrencies are and how they are different from each other, then this blog will help you understand them.  If you’re interested in knowing the 5 cryptos for high gains click here.

What is Bitcoin?

Bitcoin is the first cryptocurrency and it was launched in the year 2009. Even after its launch, it was not very popular for a very long time. It may not be recognized as the real currency, there are still many businesses that accept Bitcoin as a mode of payment. That means you can sell, buy and trade any services and goods with Bitcoin.

Bitcoin is not owned by any government or bank. No one controls Bitcoin. If you consider the US dollar, then it is the bank that controls it, while the government of the US issues it. When you make any kind of transaction, your bank will have to process the transaction and approve it. But for Bitcoin, there is no controller and hence no authorization is required. All the transactions happen on the blockchains themselves. Only the computer on which the blockchain is running will have to process the transaction. 

What is Bitcoin Cash?

Now, let us have a look at what Bitcoin Cash is. Bitcoin Cash is known as the fork of Bitcoin. Before we understand what Bitcoin Cash is, let us understand what a fork is. When there are any changes in the blockchain, the original code is updated. If all the computers on which it is running accept the updates, then it remains the same. But if only a few computers accept the update, then a new form is created with the updated computers. The original blockchain will still be the same, but the one that is split will create another blockchain. 

So, when it comes to Bitcoin and Bitcoin Cash, Bitcoin is the original blockchain and Bitcoin Cash is the fork that was created with its split. Now each of them has its coins and tokens. Bitcoin Cash was created in 2016. 

The developers of Bitcoin wanted to make some important updations to Bitcoin. But the community did not accept it. So, a few developers who anyways wanted to make those updated forks and created Bitcoin Cash. 

Difference Between Bitcoin and Bitcoin Cash: 

There are several similarities and changes that you will be able to observe when you start understanding Bitcoin and Bitcoin Cash. Check the main differences between Bitcoin Cash and Bitcoin:

Transaction Fee: 

The first and main difference that you will be able to notice between Bitcoin and Bitcoin Cash is the transaction fee. The transaction fee is less for Bitcoin Cash compared to Bitcoin. It is around $0.20 for Bitcoin Cash but for Bitcoin, it is around $1. So, you have to pay the huge transaction fee for Bitcoin. 

Faster Transactions: 

Another difference is transaction speed. Yes, with Bitcoin Cash, the transactions take just a few seconds. But with Bitcoin, you will have to wait for at least 10 minutes. 

Transactions per second: 

With Bitcoin Cash, you can process more transactions per second. That means many people will be able to use this coin. That is not possible with Bitcoin. 

There are many reasons why Bitcoin Cash provides you more benefits than Bitcoin. But one of the main reasons is the block size of Bitcoin Cash is eight times bigger compared to Bitcoin. That is why it is scalable, cheaper, and faster than Bitcoin. So, nowadays it is more popular compared to Bitcoin. Make your choice depending on these factors. 

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