The 5 Advantages of Bitcoin Cash and 5 Reasons Why it Will Overtake Bitcoin
The beginning of Bitcoin Cash is one for the history books. And this is not just because of its skyrocketing price that saw it hit triple digits in a little over one month, or because it doesn't have the transaction fees long time users of Bitcoin were used to. It is also because of the philosophy behind bitcoin cash — and how it relates to bitcoin. Bitcoin cash was born out of a philosophical misunderstanding: Where should cryptocurrencies go. Some think they are a means of payment, something you spend and spend again on whatever you like. Others think they are just digital gold: Large amounts that can be spent once. To me, this philosophical disagreement is the reason why I think that it will overtake bitcoin.
1. Bitcoin Cash has lower fees
There are some key differences between bitcoin and bitcoin cash that investors should be aware of. While the two cryptocurrencies share a common origin and much of the same underlying technology, bitcoin cash has been designed from the ground up to address some of the shortcomings of its predecessor. A major difference between the two cryptocurrencies is the size of their respective transaction fees. Bitcoin cash has extremely low transaction fees when compared with those for bitcoin, making it a particularly attractive cryptocurrency for merchants and other businesses that handle high volumes of transactions.
2. Bitcoin Cash is quicker
Bitcoin cash has a significantly larger maximum block size than bitcoin, which allows it to process more transactions per block, thereby reducing wait times. Another advantage over bitcoin is that bitcoin cash offers instant transactions (as opposed to waiting 10 minutes or more) while still maintaining a high degree of security through its use of strong cryptographic signatures and proof-of-work mining.
Bitcoin cash also differs from bitcoin in terms of how transactions are finalized. In contrast to its predecessor, which uses a consensus mechanism known as "proof-of-work," in which miners compete against one another using computational power to solve complex mathematical problems in order to validate transactions and add them to the blockchain, bitcoin cash relies on a consensus mechanism known as "proof-of-work."
3. Bitcoin Cash is more democratic and decentralized
The value of a cryptocurrency comes from its unique properties and the community behind it. The community for Bitcoin Cash is more decentralized than that of Bitcoin, which means that it’s inherently more democratic.
Bitcoin has only one decision-making group: developers who maintain the software and miners who run the network. This group is small and often criticized for being too centralized. In contrast, Bitcoin Cash has many groups, such as exchanges, wallet providers, payment platforms, and merchants with varying incentives. They all agree to work together because they believe in the same idea—one that allows them to grow their business with minimal friction. These groups function independently but share a common goal: to support Bitcoin Cash as an open, global payment system.
This decentralization supports the democratic nature of Bitcoin Cash by giving everyone a voice in how it functions. If you prefer to use Bitcoin as a store of value instead of as a currency, you can easily choose a wallet provider like Bitgo that allows you to set your transaction fees very high—in this way, you can effectively “vote” against on-chain transactions (transactions which are posted on the blockchain).
4. Bitcoin Cash has more capacity
In a professional tone: Bitcoin Cash has more capacity than Bitcoin. The Bitcoin network can only handle around 4 transactions per second while the Bitcoin cash network can handle around 60 transactions per second. With this speed, there is not much waiting time for confirmation of payments and hence more room for growth. With this increased speed in confirmations, it would be easier to use BCH as a day-to-day payment method. Also, with no block size limit in BTC, the transaction fees are much higher than that of BCH.
5. Bitcoin Cash is better for Merchants
Bitcoin cash is better for merchants and consumers because bitcoin cash is more affordable for merchants to accept payments, has lower fees, and has faster confirmation time.
Conclusion
As of now, Bitcoin Cash has a better chance of overtaking Bitcoin than SegWit Bitcoin or Unlimited. I believe in the next bull run, BCH will be the best choice for investors to hold. It also has the strongest consensus among core developers, which is why I think it has such a strong chance of success.
