Bitcoin Vs Bitcoin Cash: Which Crypto Is The Better Investment?

Bitcoin Cash (BCH) was created in 2017 as a result of a hard fork on the Bitcoin platform. As Bitcoin grew in popularity, the system slowed down. Bitcoin Cash was created to address this issue and to make other important changes to Bitcoin that its developers couldn't agree on.

Bitcoin Cash has cheaper transfer fees (around $0.20 per transaction) and faster transfer times. It can also handle more transactions per second. However, Bitcoin is the most popular cryptocurrency in the world and the largest by market capitalization.

So, which is the better investment? Well, that depends on what you're looking for. If you're after a long-term investment, Bitcoin is probably the safer option. But if you're looking for something to use for transactions, Bitcoin Cash could be the better choice.

Bitcoin Cash's faster transaction times

Bitcoin Cash's larger block size means that it can handle more transactions per second, allowing more people to use the network simultaneously. This also means that transaction fees are lower for Bitcoin Cash, as there is less competition to fit transactions into each block. Bitcoin transactions can cost around $25 per transaction, while Bitcoin Cash transactions cost about $0.20.

The faster transaction times of Bitcoin Cash are a significant advantage over Bitcoin, especially for those who frequently perform crypto transactions. This has led to Bitcoin Cash being touted as a potential solution to Bitcoin's scalability issues and a future dominant crypto. However, Bitcoin Cash has yet to gain the widespread adoption and liquidity of Bitcoin, which remains the most popular and valuable cryptocurrency.

Bitcoin Cash's lower transaction fees

The larger block size also means that transactions are confirmed quickly, and the platform can handle more transactions per second. This scalability means more people can use Bitcoin Cash at the same time than Bitcoin, and it is also more cost-effective for those transacting larger amounts of Bitcoin Cash.

The lower fees are an attractive feature for investors, and Bitcoin Cash is gaining in value and users. This is particularly true for those who frequently perform crypto transactions. It is an ideal option for use as a primary transactional currency.

It is important to note that the fee for a Bitcoin transaction can vary depending on network congestion. The busier the network, the higher the fee.

Bitcoin Cash's scalability

Bitcoin Cash has faster transaction times and lower fees than Bitcoin. This is because each block on the Bitcoin Cash blockchain is eight times bigger than Bitcoin, allowing for more transactions to be processed per block. Bitcoin Cash can process up to 15 transactions in up to 150 minutes, while Bitcoin transactions can take anywhere from 10 minutes to two days to verify. As a result, Bitcoin Cash is more scalable, faster, and cheaper than Bitcoin.

The scalability of Bitcoin Cash has made it a popular alternative to Bitcoin, as it can handle more transactions and is cheaper to use. This has led some to believe that Bitcoin Cash will take a significant chunk of Bitcoin's market share and become the dominant crypto.

However, it is important to note that Bitcoin Cash's larger block sizes have been criticised for degrading the decentralised state of the network.

Bitcoin's store of value

Bitcoin is often referred to as digital gold. It is a decentralised, scarce, and globally accessible asset, making it an attractive store of value. Bitcoin's purchasing power has increased over time, and it can be readily exchanged for fiat currency, precious metals, real estate, and property.

Bitcoin has proven to be a spectacular way to grow wealth. With an annualised return of 230% over the last decade, it performed 10 times better than the Nasdaq 100. However, Bitcoin has also suffered from high volatility, and there is no guarantee that its performance will continue.

Bitcoin's decentralised nature means it is not issued or controlled by any central authority. Transactions are verified by the computers that run the blockchain, and these can be owned by anyone. The blockchain technology that Bitcoin is built on prevents counterfeiting.

Bitcoin's digital scarcity is a key factor in its value. There is a total supply of 21 million Bitcoin tokens, and as of January 2021, there were only 2,385,193 bitcoins left.

Bitcoin is also highly divisible, with each Bitcoin capable of being divided down to 1/100,000,000th of a unit, known as a satoshi. This makes it a fungible asset, as every Bitcoin is interchangeable with any other.

Bitcoin transactions are recorded on a public, transparent blockchain, making them easily verifiable. Its decentralised nature also makes it difficult for any single entity to control or censor transactions.

Bitcoin's liquidity and utility have improved exponentially in recent years, making it more accessible for users. More countries and jurisdictions are accepting Bitcoin as legal tender, and a growing number of businesses worldwide accept it as a form of payment.

In summary, Bitcoin's decentralised nature, scarcity, and global accessibility make it an attractive store of value. Its durability, portability, fungibility, divisibility, scarcity, and verifiability further enhance its value. However, Bitcoin's volatility and limited use as a means of exchange are challenges that could impact its performance in the future.

Bitcoin's first-mover advantage

Bitcoin was the first-ever cryptocurrency and, as such, has benefited from what is known as the "first-mover advantage". This refers to the competitive edge that a product or service gains by being the first of its kind in a new market or industry.

In the case of Bitcoin, being the first cryptocurrency meant that it had an uncontested opportunity to establish brand recognition, market share, and consumer loyalty before other cryptocurrencies entered the market. This advantage is particularly notable in the cryptocurrency industry, where blockchain-based projects and exchanges compete for a relatively limited market share and user base. Capturing a large user base in the early stages can give a significant lead to a cryptocurrency.

However, the first-mover advantage does not guarantee continued success. History shows that if a better product comes along, the first-mover advantage can only get a company so far. Being the first of its kind does not secure Bitcoin's position forever, and it will have to offer something else or eventually be replaced.

Indeed, Bitcoin Cash, a hard fork of Bitcoin, was created in 2017 to address some of the issues with Bitcoin, such as slower transaction speeds and higher fees. Bitcoin Cash offers faster and cheaper transactions, which has led to its growing popularity and market value.

In conclusion, while Bitcoin's first-mover advantage has undoubtedly contributed to its success and widespread adoption, it is not the only factor that determines its value and longevity. To maintain its dominance, Bitcoin will need to continue evolving and adapting to meet the needs and expectations of its users.

Frequently asked questions