Bitcoin is the most valuable cryptocurrency in the market, and many investors are starting to take notice. Bitcoin is the first cryptocurrency, launched in 2009 by Satoshi Nakomoto.
Bitcoin’s price has fluctuated over the past year from lows of around $10,000 per coin to over $60,000. Bitcoin was originally intended to be a peer-to-peer electronic cash system used for making payments.
However, due to slow processing and volatility, Bitcoin is not very easy to use when it comes to payments. Instead of making online payments with bitcoin, people bought and held coins in the hope that they would increase in value over time, similar to the way some people hold gold.
But a group of bitcoin users in 2017 who wanted to improve bitcoin’s ability to process transactions, and make it easier to use the cryptocurrency for its original purpose as a peer-to-peer electronic cash system, created a currency called bitcoin cash.
What is Bitcoin Cash?
Bitcoin and Bitcoin Cash are two different cryptocurrencies that operate independently and have technological differences, and this can be known from the naming and tokens that you know:
BTC and BCH.
Bitcoin, the oldest cryptocurrency and the largest by market capitalization, was launched in 2009. Bitcoin Cash was forked from Bitcoin in 2017 and has grown into an asset in its own right.
A bitcoin transaction is very long and time consuming. For example, Visa, the world’s leading credit card company, processes about 1,700 transactions every second, compared to just seven transactions for Bitcoin.
As more and more people join and adopt Bitcoin, expanding its network, it also gets slower. As bitcoin has grown in size, it has become an investment tool rather than its original purpose as a currency.
This is why Bitcoin Cash appeared. Therefore, Bitcoin Cash, besides sharing many attributes with Bitcoin, also incorporates many changes, which makes it different and also closer to the vision document that was originally authored in 2008 by Satoshi Nakamoto.
How is Bitcoin Cash different from Bitcoin?
The first and most important is that Bitcoin Cash, compared to Bitcoin, has a lower transaction cost and faster data transmission. Therefore, Bitcoin Cash can be used by more people at the same time.
It is important to note that Bitcoin Cash, at least for the time being, does not enjoy as much consumer confidence as Bitcoin. The maximum block size of Bitcoin Cash is 32MB compared to 1MB of Bitcoin. This makes Bitcoin Cash more scalable, able to carry out more transactions per second, lowering its environmental impact, and increasing its viability as a currency, in theory.
On its website, Bitcoin Cash claims to have the ability to process up to 200 transactions per second, thus reducing transaction costs as well.
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