Since the arrival of crypto currencies more than a decade ago, nowadays we can say that they are at their peak and everything indicates that the future will be far more prosperous than we can imagine. That is why thousands of users have decided to invest in them, however, to achieve optimal results, it is necessary to know where we will deposit our money, and for no one is a secret that Bitcoin tops the list of the most successful crypto currencies, but it is not the only one that is booming. Bitcoin Cash also has a lot to offer, and considering that, today our appointment focuses on differentiating each one to make the decision that best suits us.
Bitcoin - Bitcoin Cash: Stable or Volatile Cryptocurrencies?
For starter, we must know the nature of the currency in which we want to invest. As many of you will know, cryptocurrencies have proven over a decade that they can be an asset that considerably increases their value, this being the case of Bitcoin and Bitcoin Cash, since both have more in common than just the name.
These cryptocurrencies are quite popular in the market due to their varying value and despite the "instability” that precedes them, in general, they make their numbers go up instead of down, a feature that attracts the most enthusiasts. But not everything is perfect, and it happens that this same quality can be a headache for the less understood in the topic, which can generate confusion at the time of "losing value" and end up confusing the investor, who in a desperate measure to protect their money, ends up selling their cryptocurrencies.
On the other hand, we have the coins that have an almost static price and despite the years, their value varies very little, which translates into stability. Among the most recognized are found the Dai or the Tether.
With all of the above said, we can deduce that both Bitcoin and Bitcoin Cash belong to “volatile” cryptocurrencies, and investing in them requires a strong hand and nerves of steel, although the rewards that they can offer us are dreamlike.
Bitcoin - Bitcoin Cash: Are they the same cryptocurrency?
We must clarify that although both have the same name, they are not the same and each has its own price. The first to emerge was Bitcoin, the cryptocurrency that dominates the market by far, but that does not mean it is perfect. As its popularity grew, several shortcomings were perceived that many investors wanted to solve. Among them we have the 1MB information blocks, which could be mined in 10 minutes, but as expected, the users wanted more power, which is why the plan to bring the information blocks to 8MB was born, which would increase by 8 times the speed of the transactions.
However, from that moment on, a division arose between those who were in favor of the change and those who were against it, thus originating the birth of Bitcoin Cash in 2017. It should be noted that the improvements that were being requested for Bitcoin were applied to the new project, and in honor of the initial cryptocurrency, it received the same name accompanied by another word. In short, Bitcoin and Bitcoin Cash have nothing to do with each other and both represent completely different assets.
Bitcoin - Bitcoin Cash: What are their main differences?
Once we have decided to invest in "volatile" cryptocurrencies, such as Bitcoin or Bitcoin Cash, now we must know how they differ and what are their uses, since this information can mark the line between a good or bad investment.
Bitcoin leads the list with a figure that exceeds USD 50K, while Bitcoin Cash has a value of around USD 1.000, and from this moment, many will realize the abysmal difference between the two and will think that the correct investment is in the highest value asset. However, before you make a decision, there are still more aspects to evaluate that differentiate these cryptocurrencies.
One of the aspects that we must emphasize is their uses, and from now on we must ask ourselves the following question:
"Which is the best strategy?"
Once we have identified the volatility of both currencies, now we must break down how to use them, or at least, how we can achieve the highest possible profitability. Starting from the previous questions, we can say that both cryptocurrencies are used for the following:
• Trading: buying and selling in the short term. Minimal returns that translate into quick investments.
• Reserve: protect our money against devaluations.
• Long-term investment: High profits in relatively long periods.
Now, in case you want to know more exactly how Bitcoin and Bitcoin Cash are used, we must say that the first of these points to long-term investment. With a value that exceeds USD 50K, many users anticipate that it will exceed USD 100K before the end of the year, however, this is still a market study that is subject to change and therefore may not reach the expected estimates.
On the other hand, Bitcoin Cash, although it can also be used as a long-term investment, its nearest future keeps it as a trading and reserve tool, so it is also quite attractive to a growing audience.
Is Bitcoin Cash a copy of Bitcoin?
With all the above raised, we can say that Bitcoin Cash despite being born from the original project, Bitcoin, has great differences that make it a cryptocurrency with a promising future, so from now on, we can say that "no", it is not a copy, and on the contrary, we are facing an asset with good prospects; and although it is far from reaching the most successful cryptocurrency in the market, we must say that with its short lifetime, it trades an adequate value that is always subject to rising or to go down. We cannot forget that at the end of the day, it is still a “volatile” cryptocurrency.
In conclusion: which one is better to invest in? Bitcoin or Bitcoin Cash?
Everything will depend on the results that you are looking for. If you want short-term profits, trading Bitcoin Cash can be very lucrative, or you can use it to protect your money. As an additional fact, the possibility that in the future its value will grow considerably is always latent.
Now, if you are looking for a long-term investment with the promise of multiplying your money several times, Bitcoin is your best choice, but once again, we must remind you that these gains are achieved with patience, and on many occasions, we can see how Bitcoin rapidly loses its value, which once again characterizes it as a "volatile" cryptocurrency.