The most popular cryptocurrency, Bitcoin, has been ruling the market for digital currencies. But with getting popularity the cryptocurrency, Bitcoin gets slower and cannot perform the transaction at the speed of which is required for a digital world. And also the transaction cost becomes higher with more users using it. So to overcome the painfully slow speed of bitcoin a new cryptocurrency was developed which can perform the transactions faster and quicker with less transaction cost. So confusions among these two coins may arise, Which one of them is better, Bitcoin or Bitcoin Cash? In which you should invest? Do not worry we will provide you everything you need to know about it.
What is Bitcoin Cash?
It is a “hard fork” of Bitcoin, which is a process of development of a new currency from pre-existing blockchain.
Some miners and developers had initiated the fork as they were not satisfied with the transaction speed and its slowness.
Bitcoin community was divided into two groups, one who were miners and who needed the faster speed to mine and other is Bitcoin’s users and developers.
These both two groups were not ready to compromise with each other which lead to the launch of a new coin “Bitcoin Cash” with the process of “Hard fork”.
On the day when the Bitcoin was forked, Bitcoin Cash came into existence that is from August 2017. The last common block which they both had was 478558 and from the block 478559, a new currency was split from Bitcoin known as Bitcoin Cash.
Bitcoin Cash cryptocurrency used a timer to initiate fork so its wallet started to reject BTC block and BTC transactions since 13:20 UTC, August 1, 2017. And it has the block size of 8 MB which makes it faster as it is able to carry more data in each block.
Difference between Bitcoin and Cash
Both cryptos are more similar to each other as Bitcoin Cash is a hard fork from Bitcoin. But it’s a hard fork so that’s why it has a separate existence in currency world. The hard fork made it a different currency than Bitcoin. The major difference in Bitcoin and Cash are :
- Bitcoin is slower and unreliable for the quick transaction.
- Bitcoin only can do 7 transactions per second whereas even Visa card can perform around 24000 transactions per second.
- The Bitcoin has only 1 MB of block size whereas Bitcoin Cash has 8 MB which makes it able to store more data in each block.
- Bitcoin cash is faster but it is believed to less secure than the Bitcoin cryptocurrency.
- Bitcoin has a greater network than Bitcoin Cash and even 10 times more full nodes than Bitcoin Cash.
- The transaction cost in Bitcoin is higher than the Bitcoin Cash and slower too and it also takes more time to verify the transaction in Bitcoin.
- It is not possible to directly exchange Bitcoin Cash with Bitcoin although Bitcoin Cash had split from Bitcoin, but as now they are completely different and separate cryptocurrencies they cannot be stored in the same wallet and cannot be exchanged.
10 Facts You Should Know Before Buying it :
- Both Bitcoin and Cash work on proof of work algorithm.
- Bitcoin Cash has the ticker symbol BCH.
- It also has its subunit as Satoshi.
- It is forked from Bitcoin and its first ever block was 478559.
- It is a decentralized cryptocurrency with no central agency or organization which control over it. It works on completely on an algorithm developed by programming.
- It is also mined like Bitcoin and 12.5 BCH is rewarded in every 10 minutes.
- Total Bitcoin Cash ever produced will be only 21,000,000 BCH.
- It is faster and reliable for the transaction than bitcoin but it is considered less safer than the original Bitcoin insecurity.
- It is not only the hard forked cryptocurrency from Bitcoin, but also Bitcoin Gold was forked from Bitcoin.
- All those people who own Bitcoin before 478558 blocks are automatically owner to Bitcoin Cash and further block after the block 478558 who owns Bitcoin, will not automatically own Bitcoin Cash.
How to Buy Bitcoin Cash?
It has been widely accepted and adopted by different digital currency exchanges. CIX.IO, Coinbase, Kraken, Bitstamp, Shapeshift, etc can be used for the exchange process of Bitcoin Cash. Here is the full step by step process to buy Bitcoin Cash :
Step 1: Choose a secure wallet
First, you need to choose a wallet that is secure enough to store the coins that you are going to buy Bitcoin Cash.
You need to have a wallet that can hold or store Cash coins. There are mainly two popular hardware wallets Ledger and Trezor.
They have even provided to claim your Bitcoin Cash from splits of Bitcoin earlier.
Hardware wallets are considerably thought to be more secure than other wallets.
Or you can also choose software wallet to store Bitcoin Cash like Exodus, Jaxx, Electrum, Keepkey, BTC.com, Bitpay, and Coinomi.
For more suitable wallets for you, you can also view the list of wallets on its Official website.
Step 2: Choose an Exchange to buy Bitcoin Cash coins
Now you need to buy the Bitcoin Cash from an exchange.
The popular exchanges available for Bitcoin Cash are Coinbase, CEX.IO, Bitfinex, Poloniex, HitBTC, Kraken, etc can be chosen as an exchange to buy Bitcoin Cash. You can also view other available exchanges list from its official website.
You might need to pay a fee for exchange and use of credit card may get you costly fee.
Here are some most popular exchangers
1. Coinbase: The most popular exchange, Coinbase, has supported the exchange of Bitcoin Cash. It is one of the reputed exchange available for the exchange of Bitcoin Cash.
2. CEX.IO: It is also one of the popular exchange available to exchange into Bitcoin Cash. You can your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
3. Binance: Another popular exchange to buy Bitcoin Cash is Binance. It allows traders and merchant to transfer payment at a lower cost. Binance supports multiple languages and more than sixty cryptocurrencies.
You need to provide identification details about you to buy crypto, which is completely safe and no need to worry about privacy concerns.
You can choose any exchanges from these lists and you can buy Bitcoin Cash with cash, credit card, and debit card or else you can also use bank transfer services to get it from popular exchanges.
Normally the payment processes within an hour but it might also take 24 hours to get approval of transaction.
Step 3: Transfer your Bitcoin Cash to your wallet
Bitcoin Cash after buying from exchanges, you can leave it there also but it is highly not recommended to do so.
Either you need to transfer your Bitcoin Cash coins to your Bitcoin Cash wallet to keep your coins safe and secured.
It is to be done immediately after the exchange process completes.
If you leave your Bitcoin Cash coins in exchange, it is at risk to be hacked or shut down of the exchange site, so to stay secured you need to store your Bitcoin Cash coins in a secure wallet with a private key.
Here is another interesting post: How to Buy Bitcoin? Why Should buy And Why You Shouldn’t!
Is Bitcoin Cash Better Than Bitcoin?
It is a hard fork of Bitcoin, so mostly the functionalities of Bitcoin and Cash is similar but a question arises, “Which one is better?” and “Which is fruitful to invest?”.
We all know that currently, Bitcoin is the leading cryptocurrency in the digital currency market.
So it is not an easy task for any new cryptocurrency to take over the position of Bitcoin.
Though Bitcoin came first and had its privilege of first at the top, it has some weakness too with rising in popularity.
Bitcoin cannot be used for a fast transaction or as a regular digital currency for day to day use because it takes a lot of time to verify a single transaction.
This weakness of Bitcoin made Bitcoin Cash a demand for time to make a real digital currency for day to day use. Bitcoin can only do seven transactions in a second, which is very much less than pre-existing visa card too.
Bitcoin Cash has increased its size to 8 MB to perform transaction at better speed than Bitcoin.
Both these currency uses a similar algorithm and are developed for similar use.
But Bitcoin is lagging in speed. Whereas Cash is faster and it’s also easier to mine. It makes it vulnerable to security issues. It does not have similar security as provided by Bitcoin.
Bitcoin has a transaction cost a lot higher than Cash and with the rise in its users it will become even higher but in comparison to transaction cost of Bitcoin, Cash has the very much low fee for a transaction which is also a factor for attraction to Cash rather than Bitcoin.
The high transaction cost of Bitcoin makes a problem of transactions of lower money as the cost of transaction fee might have to pay more than the actual payment that has to be done.
The future of digital currency needs speed to perform a large number of transactions per second, it is obvious that Bitcoin will not be able to speed up its transaction so the better option will certainly be its clone which is even faster, cheaper and easier to mine.
So if anyone is planning to invest in cryptocurrencies for future profit, then Bitcoin Cash will not be a bad debt.
Either of them, Bitcoin and Cash, can be a profitable investment, as of now Bitcoin is at first position and Cash is at a top five position. But it is better to take the advice of the Business expert or digital cryptocurrency expert before investing in such volatile cryptocurrency as they also have many risks to invest. So we strongly recommend not to invest that much amount, which you can not bear the loss.