Bitcoin is no longer the sole star in the crypto scene. Yes, no one is denying that the coin still holds the numero uno stature, but it is also true that the crypto world has recently embraced a bunch of new coins that speak of great promise as well. Among the new powerful coins that can pose serious competition to BTC today, one of the crucial names is Bitcoin Cash (BCH).
The article below offers a comparative study on the two so that you can have a better understanding of which one to invest in.
Launched in 2009, Bitcoin is a trailblazer in the cryptocurrency scene. The biggest cryptocurrency to date, BTC was developed to introduce a cutting-edge decentralized P2P electronic cash that is based on advanced
blockchain technology. Given its decentralized infrastructure, Bitcoin cannot be governed or controlled by any single authority. All the Bitcoin transactions are recorded in a decentralized global immutable and encryption-guarded blockchain-based ledger. As a result, no one can alter or censor BTC transactions which makes them way safer compared to traditional fiat money.
But, one of the major drawbacks of BTC is its extremely restricted block size limit which is a mere 1 MB. It was not a problem initially but as the coin started gaining traction, this limited block size proved to be insufficient to manage an increased flow of transactions on a daily basis.
No wonder, the crypto world started looking for options that can beat the scalability issue of Bitcoin and assure better speed. It led to the birth of more competitive coins like Bitcoin Cash among many others.
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Interestingly, Bitcoin Cash was launched in 2017 through Bitcoin hard fork to present a coin with better scalability than Bitcoin. While BTC was introduced with a 1 MB block size, BCH was launched with an 8x bigger 8 MB size. Later on, the block size was further scaled to an even grander 32 MB.
In other words, BCH is designed with a faster transfer speed that enables it to manage more transactions (compared to BTC) per second. As a result, more people would be able to use Bitcoin Cash simultaneously compared to what you would find with Bitcoin. Also, BCH assures more economical transaction fees ($0.20) compared to that of Bitcoin ($1).
So, Which One?
What we can infer here is that Bitcoin Cash has a much stronger capacity to handle a growing scale of the user base. The crypto scene is gaining momentum with each passing month, and you have more people looking forward to testing the waters now than you had 7-8 years back. In that light, you need a coin with increased scalability to handle increasing traffic and Bitcoin Cash surely shows immense promise here. The cheaper transaction rate is another big draw here.
So, which one to go for? Well, both the coins mentioned here are great in their own aspects. But, while Bitcoin is still ruling the roost, Bitcoin Cash also shows a brighter future with its stronger emphasis on far improved scalability, and economical transaction fees. Yes, Bitcoin will remain the king and most likely the most traded ones, but Bitcoin Cash will clearly take a strong part by its improvement and continuous adoption.
Sydney Ifergan is a crypto expert and Advisor for the Digibyte Foundation.