Did you know that Bitcoin Cash allows more transactions into a single block than Bitcoin does?
Despite their differences, many people confuse Bitcoin with Bitcoin Cash. Those who don’t understand the difference between these two cryptocurrencies often miss out on valuable investment opportunities.
To help you understand the relationship between Bitcoin vs Bitcoin Cash, we’ve written a short guide. Read on and we’ll tell you what’s important to know.
How Bitcoin and Bitcoin Cash Originated
A person by the name of Satoshi Nakamoto created Bitcoin back in 2007. As the world’s first cryptocurrency, Bitcoin took the world by storm. It is now the world’s most popular cryptocurrency.
Many people don’t realize that Bitcoin’s developers originally intended it to be a peer-to-peer electronic payment system. Unfortunately, they didn’t realize until after developing Bitcoin that it was highly volatile. The other problem was that Bitcoin’s transaction speeds were extremely slow.
This made it difficult to use Bitcoin as an electronic payment system. Therefore, a team of developers created Bitcoin Cash in 2017. Their goal was to create a cryptocurrency that did not have the same problems as Bitcoin did.
Developers created Bitcoin Cash through a hard fork on the Bitcoin blockchain. This means that Bitcoin Cash uses the same underlying code as Bitcoin does. The difference is that Bitcoin Cash uses a different blockchain protocol, which means that Bitcoin and Bitcoin Cash are actually two different chains.
How Bitcoin and Bitcoin Cash Are Similar and Different
The most important difference between these cryptocurrencies is that Bitcoin Cash has a shorter transaction period. A Bitcoin Cash transaction takes about two minutes and a Bitcoin transaction takes around ten minutes. Most credit card transactions take less than a few seconds.
Bitcoin and Bitcoin Cash also have different block sizes. Bitcoin has a block size of 2MB, but Bitcoin Cash has a block size of 32MB. Since it’s possible to perform more transactions on blocks that are larger in size, Bitcoin Cash is easier to scale.
It’s also important to know that companies such as Byte Federal are making it much easier for people to perform transactions with Bitcoin. For example, it’s possible to use their ATMs to buy and sell Bitcoin with the use of a debit or a credit card.
Another difference between the two cryptocurrencies is that Bitcoin Cash’s transaction fees are also much less than those of Bitcoin. Lastly, Bitcoin Cash uses smart contracts but this is not something that Bitcoin does.
Bitcoin vs Bitcoin Cash: Similar but Different
It’s easy to be confused about the similarities and differences between Bitcoin vs Bitcoin Cash. Even though they are both built on the same blockchain, Bitcoin Cash has faster transaction speeds. Bitcoin is much more popular than Bitcoin Cash because it has many more practical uses.
Do you want to learn more about cryptocurrencies? If so, consider visiting the Money section of our website.