In the world of cryptocurrencies, Bitcoin (BTC) has always been high on the awareness rate as well as the adoption rate. Since its inception in 2009, the crypto space has struggled to cope up with certain flaws such as scalability. This criticism led to its forking, which gave birth to Bitcoin Cash (BCH), which was created on the Bitcoin blockchain itself, but with some updates. Although Bitcoin Cash wasn’t the first one to be forked, it indeed became the most prominent one by securing the high rank up the market capitalization ladder.
Its been more than a decade that Bitcoin came into existence, and there were no problems in handling transactions. But with the onset of it becoming popular, more and more transactions are happening daily, which makes the transaction fees higher and speed slower. The network, in turn, struggles to handle huge loads of data while maintaining low fees. The developers thus proposed to increase Bitcoin’s block size to get rid of the scalability issue.
A new block can be created through the process of mining in case of Bitcoin and Bitcoin Cash, where the miners solve complex computational calculations, and the first one to solve gets rewarded with the right to add a new block to the blockchain. They get a block reward for validating the transactions and securing the network.
Bitcoin’s block size is approximately 1 Megabyte, which cannot tackle at periods of high transaction volume, leading to a long waiting line (mempool). At such times, the user either has to wait for his turn or pay a high transaction fee for the miners to prioritize the transaction. In order to get over this problem permanently, some of the Bitcoin community members created this hard fork for Bitcoin called Bitcoin Cash in August 2017, which increased the block size to 8 Megabytes.
But the larger blocks take up huge hard drive space, which costs more for the node operators- the servers that store the blockchain and serve it to the users. This leads to the centralization of the nodes, which compromises the security of the network.
Therefore, the Bitcoin small blockers keep the blocks small and figure out scalability options with features like “lightning network” or “layer 2”.
Bitcoin Cash has lower transaction fees than Bitcoin, which is $.0019 for BCH vs. $0.39 for BTC.
BCH blocks can accommodate more transactions at once, which means the waiting time is lesser for the users. However, Bitcoin Cash is nearly used as much as Bitcoin, so testing has been done based on its network traffic, not as the same degree as Bitcoin. BCH block height is more as compared to Bitcoin, which clearly states why BCH transactions are confirmed faster.
The current block generation time for Bitcoin is 10 minutes, in which around 2,759.12 transactions can be done. The bitcoin blockchain can hence handle 4.6 transactions per second. The average size of a Bitcoin Cash transaction is around 250 bytes. As with every 10 minutes, 32 MB blocks are generated, BCH can support as much as 768,000 transactions per hour, which means 18,000,000 transactions per day.
In terms of the adoption rate, needless to say, Bitcoin is the clear winner. Most people hold or have invested in Bitcoin, and even institutions have accepted Bitcoin faster than Bitcoin Cash because of its popularity. The main reason behind Bitcoin’s credibility is that its the first cryptocurrency that has been ruling for over a decade, that too with the highest market capitalization.
Even in the case of the mining power, Bitcoin stands up. Hash Rate means the computing power used by the miners to validate the transactions and secure the network. Bitcoin Cash’s total hash rate is just a fraction of Bitcoin’s. As of March 16, 2020, Bitcoin’s hash rate is recorded at 99.7948 Exahashes and the BCH hash rate is recorded at 3.8014 Exahashes, which is around 33X lesser.
This means Bitcoin Cash is more susceptible to a 51% attack- where an illicit agent gains 51% or more of the network’s hashrate, leading to malpractices like reversing the transactions.
When it comes to price, it’s nearly impossible to beat the value of Bitcoin. BTC has proved itself to be the most valuable crypto asset since its inception.
As of March 17, 2020, Bitcoin is trading at $5268.67, with a market capitalization of around $96 billion and a circulating supply of 18,274,275 BTC.
Bitcoin Cash is trading at $180.80, with a market capitalization of around $3 billion and a circulating supply of 18,225,288 BCH.
Before taking any investment-related decisions, don’t forget to do thorough research. Bitcoin is the most valuable crypto asset, but if you are looking for less of an investment, you can go for BCH.
You can’t segregate cryptocurrencies as “better” or “best”, it’s based on the market and its performance. Thee are other factors like the cryptocurrency community and roadmap, that can be taken as a factor to measure its potential.
We have discussed the major differences between Bitcoin and Bitcoin Cash above, of which the main difference is that Bitcoin Cash is a fork of Bitcoin created years later.
Like Bitcoin, Bitcoin Cash is also used as a payment system- which allows lower transaction fees and faster transaction times.
As the crypto market is volatile, it is difficult to predict the future. Bitcoin has been maintaining its position any which way. Bitcoin Cash has also been gearing up with the potential to grow.
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