What is the difference between Bitcoin and Bitcoin Cash for Beginners?

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Bitcoin and Bitcoin Cash are two different cryptocurrencies that work independently and have technological differences, but you may not know this from the names or even their token symbols of BTC and BCH, respectively. Bitcoin, the oldest cryptocurrency and the largest by market capitalization, was launched in 2009. Bitcoin Cash split from Bitcoin in 2017 and has grown and become an asset in its own right. But how did it come about?

When Satoshi Nakamoto, the anonymous person (s) behind Bitcoin, wrote his whitepaper, the vision was to have a peer-to-peer version of electronic money that enables online payments that one party to a others can send without going through a financial institution. Twelve years later, that vision has grown into a giant digital token that defines the cryptocurrency market. Bitcoin price in India was Rs. 35.15 Lakhs as of 2pm IST on August 18th.

In addition to the usual concerns about the uncertainty and volatility of cryptocurrencies, there has been an issue with the speed at which these transactions are processed. The reason for this is that the Bitcoin transactions are processed first, followed by verification, which is then recorded in a digital ledger called the blockchain.

Well, it turns out to be a pretty tedious and time consuming process. Try this out. Visa, a global leader in the credit card business, processes around 1,700 transactions every second compared to just seven for Bitcoin.

Make Bitcoin More Scalable

As more and more people join Bitcoin and expand their network, it will also slow down. Over time, as Bitcoin grew in size, it became an investment tool instead of its original purpose of being a currency. And that’s why what happened in August 2017 was what industry experts call a “fork”.

Bitcoin Cash therefore not only shared many attributes with Bitcoin and also integrated various changes, making it different and also closer to the vision document originally written in 2008.

The main difference between the two is that while they sound similar, they are two completely different currencies. Let’s delve further.

How is Bitcoin Cash different from Bitcoin?

For many of us, the first question will be the value of each one as an investment. At the time of writing, the Bitcoin price in India is over Rs. 35 lakh while the Bitcoin Cash price in India is over Rs. 50,000. As an investor, the price of the tokens is of course not that important, but whether they gain in value or not, so that’s not the only thing you need to know.

Among the other big differences, the first and foremost is that Bitcoin Cash has lower transaction costs and transfers data quickly compared to Bitcoin. Bitcoin Cash can therefore be used by several people at the same time. However, it’s important to note that Bitcoin Cash doesn’t enjoy as much consumer trust as Bitcoin, at least for now.

The maximum block size of Bitcoin Cash is 32MB compared to 1MB of Bitcoin. This makes it more scalable and able to conduct more transactions per second, reducing its environmental footprint and, in theory, increasing its profitability as a currency. On its website, Bitcoin Cash claims that it can process up to 200 transactions per second, which also reduces transaction costs.

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