Did you know that Bitcoin Cash originated from Bitcoin itself? That’s right — Bitcoin Cash nodes were once a part of the Bitcoin blockchain. Bitcoin Cash is a fork of Bitcoin.
But which of the two should you choose to invest in? What is the difference between Bitcoin Cash vs Bitcoin? What’s a “fork’? There are so many questions, and I’m here to answer them all!
First, let’s look at a little about Bitcoin and its background. Then, I’ll explain what a fork is. After that, we’ll look at the story behind Bitcoin Cash and its features.
Bitcoin was the first ever cryptocurrency and for many years it wasn’t very known. It is just like any other real currency. You can use it to buy, sell and trade for goods, services, investments and more.
The blockchain technology that it’s made of prevents it from being counterfeited. It also means it is not owned, issued or controlled by any one single group or party.
Today, Bitcoin is the most valuable cryptocurrency currently on the market. While other currencies are attempting to outrank Bitcoin and reduce its dominance over the digital-coin sector, few are getting close. However, Bitcoin Cash may be an exception to that due to the difference between Bitcoin and Bitcoin Cash!
As Bitcoin Cash is a fork of Bitcoin, I’ll explain what a fork is before I explain Bitcoin Cash!
A Fork
There are quite a few Bitcoin forks, but none are as used or as well known as Bitcoin Cash. A fork is created when the original code of a blockchain is updated but only some of the nodes (computers) on the blockchain accept the update.
The original blockchain (like Bitcoin) remains the same, and the updated nodes split off from the original blockchain and create a new blockchain (like Bitcoin Cash) and the coins on the blockchain become separate and unique from the ones on the original blockchain.
Anyone holding the original coin at the time it was forked will automatically get the forked version of the coin they were holding. So, when Bitcoin forked to Bitcoin Cash, someone who had 10 BTC would automatically have received a certain number of BCH matching the value of their 10 BTC.
Bitcoin Cash
Like Bitcoin, Bitcoin Cash is a cryptocurrency with its own blockchain. It works just like a digital currency and new BCH (Bitcoin Cash) is created through Bitcoin Cash mining. It was created at the end of 2016, making it much younger than Bitcoin.
Bitcoin was forked to create Bitcoin Cash because the developers of Bitcoin wanted to make some important changes to Bitcoin. The developers of the Bitcoin community could not come to an agreement concerning some of the changes that they wanted to make. So, a small group of these developers forked Bitcoin to create a new version of the same code with a few modifications.
The changes that make all the difference between Bitcoin Cash vs Bitcoin are these:
Bitcoin Cash has cheaper transfer fees (around $0.20 per transaction), so making transactions in BCH will save you more money than using BTC. A BTC transaction can cost around $1 USD per transaction, although it previously went up to around $25 per transaction!
BCH has faster transfer times. So, you don’t have to wait the 10 minutes it takes to verify a Bitcoin transaction!
BCH can handle more transactions per second. This means that more people can use BCH at the same time than they can with BTC.
All these changes are due to the fact that a Bitcoin Cash block (in the blockchain) is eight times bigger than a Bitcoin block. This makes BCH faster, cheaper and more scalable than Bitcoin. Bitcoin cash is becoming more and more adopted by the day because of this.
That's all for today, a little introduction of the two, have a good day.
Yes cos they are similar to each other