26 July 2020

Bitcoin

During September of 2015, the regulator of the commodity market in the United States, the (CFTC), officially declared Bitcoin as a commodity. This has emphasized a particular recognition of cryptocurrency by financial institutions. Financial transactions in Bitcoin and trading on specialized platforms are now carried out in compliance with the rules governing the exchange of raw materials.

Today, big banks seek to make the most of the financial potential of blockchain and Bitcoin technology.

Bitcoin serves as a virtual currency used by billions of customers around the world, which are a real alternative to traditional currencies.

Bitcoin Cash

Bitcoin Cash (BCH) is a clone of an old version of Bitcoin on which the team of developers modified specific parameters, in particular the size of the blocks. The idea is to be able to accommodate more transactions in the parent blockchain without resorting to “off-chain” solutions such as the Lightning Network deployed on Bitcoin. However, the project lacks traction as most of the Bitcoin community has never supported this vision. Bitcoin Cash is mainly seen today as a tool for speculation in the markets.

Bitcoin vs Bitcoin Cash: Which is Better

Bitcoin is a cryptocurrency that exists on a network of computers within the blockchain.

The blockchain is a unique and revolutionary recording technology. It makes registers more difficult to tamper with, as they are verified by the majority. The key problem with this technology is that the calculations are rather slow. Bitcoin is only able to process 7 transactions per second.

 

However, Bitcoin Cash is the solution to this transaction speed problem that plagues Bitcoin. The transaction costs of Bitcoin Cash are much lower than those of Bitcoin. Bitcoin fees can typically go up to $1 per transaction, compared to around $0.20 for Bitcoin Cash. Bitcoin Cash transfer times are also faster in the sense that you don’t have to wait more than 10 minutes to process a given transaction.

Bitcoin Cash also allows more transactions to be processed at any given time, so more people can use the currency at the same time. Also, it is capable of offering these advantages because its block on the blockchain is eight times larger than that of Bitcoin.

 

Data as of 07/26/20 Bitcoin Bitcoin Cash
Symbol BTC BCH
Current Price $9,910 $246
Market Capitalization $183 billion $2.4 billion
Launch 2009 2017
Circulating Supply >17 million >17 million
Maximum Supply 21 million 21 million
Mining/ Release Rate 12.5 per block 12.5 per block
Maximum Transaction Per Second 7 60
Network n/a n/a
Approximate Block time 10 minutes 10 minutes

 

Conclusion

To sum up, one can say the Bitcoin Cash offers significantly more functions compared to Bitcoin. However, Bitcoin Cash is a newer currency that is still trying to find its place in the market. Its advantages in terms of price and scalability are clear. For now, it does not have the same confidence and the same support from those who invest in Bitcoin. On top of that, miners don’t make as much profit by mining Bitcoin Cash, so they are less involved in mining these blocks.

 

Bitcoin has the advantage of being the dominant force in the cryptocurrency market. Overall, if Bitcoin is doing well, other cryptos are more likely to do well, and vice versa. Bitcoin represents 44.5% of the total capital of cryptos, so it is the dominant player in this area.

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Edmund McCormack
Tech industry veteran and blockchain technology investor. Simplifying cryptocurrency for almost a decade.

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