Bitcoin Vs Bitcoin Cash: Which Is The Better Investment?

Bitcoin was the first cryptocurrency to achieve public awareness. It was created in January 2009 by the pseudonymous Satoshi Nakamoto. It is a digital currency that operates on a decentralised platform and offers lower transaction fees than traditional online payment systems. Bitcoin Cash, on the other hand, was created in August 2017 as a result of a hard fork on the Bitcoin platform. This was due to concerns about Bitcoin's future and its ability to scale effectively.

Bitcoin Cash offers faster transaction times and lower fees than Bitcoin. It is also more scalable, making it a viable payment platform. However, Bitcoin is the most popular and dominant cryptocurrency in the world, with a larger market capitalisation.

When deciding whether to invest in Bitcoin or Bitcoin Cash, it is important to consider the benefits and drawbacks of each. Bitcoin is the gold standard of cryptocurrencies, while Bitcoin Cash is faster and cheaper to transact with. It is also important to do your own research and understand the risks involved in investing in cryptocurrencies.

Bitcoin Cash's faster transaction times

Bitcoin Cash has faster transaction times than Bitcoin. This is because a Bitcoin Cash block is eight times bigger than a Bitcoin block. Bitcoin Cash blocks can be up to 32MB, while Bitcoin blocks are limited to 4MB. This means that Bitcoin Cash can handle more transactions per second, allowing more people to use it at the same time.

Bitcoin Cash transactions are almost instantaneous, while Bitcoin transactions generally take anywhere from 10 minutes to an hour. The average confirmation time for a Bitcoin payment is about 10 minutes, but transaction times can vary. Each confirmation is equivalent to the Bitcoin transaction being included in one block, and each block takes about 10 minutes.

The faster transaction times of Bitcoin Cash also result in lower transaction fees. A Bitcoin transaction costs $59 on average, while a Bitcoin Cash transaction costs less than a penny.

However, the downside of faster transaction processing is that Bitcoin Cash is potentially less secure than Bitcoin. Fewer miners are needed to process and confirm transactions, which could compromise the security of the Bitcoin Cash network.

Bitcoin Cash's lower transaction fees

Bitcoin Cash has lower transaction fees than Bitcoin. Bitcoin Cash's transaction fees are less than a penny, while Bitcoin's are much higher, at around $1 USD per transaction, although they have been as high as $25 and nearly $60 during periods of network congestion.

The higher transaction fees of Bitcoin are a result of the limited block space available for transactions on the Bitcoin network. During times of congestion, transaction fees can skyrocket as people try to outbid each other to get their transactions confirmed.

Bitcoin's higher market value

Bitcoin has a higher market value than Bitcoin Cash. As of August 2024, Bitcoin's market cap is $881 billion, while Bitcoin Cash's market cap is $7.1 billion.

Bitcoin was the first-ever cryptocurrency and, for many years, it wasn't widely known. Bitcoin is just like any other real currency, and it can be used 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.

The total number of Bitcoin that will ever exist is limited to 21 million. As more people try to get their hands on some Bitcoin and the rate of creation decreases, the common belief is that the value will increase.

Bitcoin Cash, on the other hand, is a fork of Bitcoin, created in 2017 to address the issue of Bitcoin's relatively low volume of transactions per second, limiting its utility for payments. Bitcoin Cash uses a larger block size than Bitcoin—blocks are groups of transactions added to the blockchain at the same time. Bitcoin Cash expanded its block size to 32 MB, which allows it to process over 100 transactions per second.

Bitcoin Cash works very similarly to Bitcoin. It’s an open-source, decentralized digital ledger that utilizes proof of work. Miners confirm and add transactions to the blockchain by using cryptography to solve equations, receiving Bitcoin Cash tokens as a reward for their work. They can then sell the coins to others.

The key difference between Bitcoin and Bitcoin Cash is the block size. Because of this adjustment, Bitcoin Cash can have faster and less expensive transactions. A Bitcoin transaction costs $59 on average, while Bitcoin Cash costs less than a penny.

The downside to processing everything more quickly, though, is that it’s potentially less secure than Bitcoin. There are fewer miners needed to process and confirm transactions, which could make it easier for the Bitcoin Cash security to be compromised.

Bitcoin Cash's potential to take a large chunk of Bitcoin's market share

Bitcoin Cash has the potential to take a large chunk of Bitcoin's market share due to its ability to address Bitcoin's scalability issues. Bitcoin Cash has a larger block size, allowing for more transactions per second and lower transaction fees. This makes it more scalable, faster, and cheaper than Bitcoin. As a result, it is gaining users and value quickly, and many crypto community players believe it will become the dominant crypto.

Bitcoin Cash was created as a hard fork of Bitcoin in August 2017 to address Bitcoin's slow transaction speed and high transaction fees. The Bitcoin Cash block size was initially increased from 1MB to 8MB, and later to 32MB, while Bitcoin's block size remains at 1MB. This means that Bitcoin Cash can handle significantly more transactions per second, making it faster and cheaper to use.

The advantages of Bitcoin Cash include its lower transaction fees, faster transaction processing rates, and greater scalability. It is also gaining popularity due to its ability to address Bitcoin's scalability issues, allowing more users to access it at lower fees and faster transaction rates.

However, Bitcoin Cash also has some disadvantages. It does not have the same level of investor confidence as Bitcoin, and its adoption rate and market penetration are much lower. Additionally, Bitcoin Cash mining is relatively similar to Bitcoin mining, but miners make much less profit.

Despite these disadvantages, Bitcoin Cash has the potential to take a large chunk of Bitcoin's market share due to its ability to address Bitcoin's scalability issues and provide faster and cheaper transactions. Many investors and traders prefer Bitcoin Cash for these reasons, and it is gaining value and users quickly. Therefore, it is a strong contender to become the dominant crypto in the industry.

Bitcoin Cash's scalability

Bitcoin Cash has faster and cheaper transactions than Bitcoin. This is because Bitcoin Cash has a larger block size than Bitcoin, allowing it to process more transactions per second. Bitcoin Cash blocks are eight times bigger than Bitcoin blocks, allowing for more transactions to be included in each block.

Bitcoin Cash blocks have a size of 32 MB, allowing it to process over 100 transactions per second. On the other hand, Bitcoin blocks are limited to 1 MB, allowing only about seven transactions per second.

The larger block size of Bitcoin Cash also means that it has increased scalability compared to Bitcoin. This results in lower fees for users, making it more transactable.

Frequently asked questions