WHAT’S THE DIFFERENCE BETWEEN BITCOIN AND BITCOIN CASH?

Bitcoin vs Bitcoin Cash is a popular topic in the cryptocurrency community as both digital currencies have grown to become major players in the crypto market. Although both cryptocurrencies share many attributes such as the same white paper, the same supply, the same mining algorithm, and a similar reward system, they do not share the same views on scalability. 

Over the years, Bitcoin has been the dominant cryptocurrency in the financial markets, gaining traction and mainstream acclaim which has made its price surge to unexpected levels. However, issues of slow transaction processing and scalability have surfaced about Bitcoin in recent times. For instance, Visa – a credit card company- processes about 65,000 transactions per second while the maximum transaction Bitcoin can accommodate in a second is Seven.  

Transactions performed on the Bitcoin network take up to minutes to process and this is attributed to increasing in Bitcoin users on the network. As Bitcoin continued to expand rapidly, scaling the amount of data entering each block became a problem. This leads to increased transaction fees, network congestion, and slow transaction processing times. 

As of 2017, when the market experienced record growth and concerns about the scalability of Bitcoin became more imminent as the Bitcoin network was prone to transaction delays and network congestion. At this stage, Bitcoin couldn’t be implemented as a peer-to-peer electronic digital currency due to transaction delays and extravagant network fees. This lead to the introduction of a new digital currency known as “Bitcoin Cash (BCH)” which was created to address the scalability issues of Bitcoin. 

BCH was created by a group of miners and developers who initiated a process which is known as the “hard fork” to create the new cryptocurrency. The idea behind BCH was to implement an increased block size of 8 MB to speed up the transaction process. As of 2018, the block size was later increased from 8 MB to 32 MB in size to provide swift transactions to Bitcoin users. 

These developments to BCH have made it possible to process transactions quicker and cheaper than Bitcoin as quicker transactions imply cheaper transaction processing fees. However, the fast transaction processing of BCH can present security vulnerabilities because of its large block size. 

In recent times, Bitcoin has been finding technical updates to solve its scalability issues and one of the major developments in the implementation of Segregated Witness (SegWit) into its network. Bitcoin is still recognized as the superior cryptocurrency because of its value and its potential to deliver exceptional returns.  

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Bitcoin is a prominent cryptocurrency in the crypto market but has been experiencing technical problems such as transaction delays and poor scalability. Bitcoin Cash was created in 2017 to address these scalability problems and provide better performance to users. Both cryptocurrencies are similar in many aspects but differ in their views of scalability. 

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