In the world of cryptocurrency, there is a lot of discussion between those who support Bitcoin and those who support Bitcoin Cash. However, many fundamental differences separate the two cryptocurrencies.
Yet they are often linked because specific individuals and businesses see them as compatible alternatives to each other.
Bitcoin is a cryptocurrency with a market capitalization of over $70 billion. Unfortunately, Bitcoin has a highly deflationary monetary policy that means we can only mine 21 million Bitcoins in circulation.
A large amount of controversy is directed at the use of this cryptocurrency to launder money and finance terrorism, as it’s difficult to track the transactions on the network. However, this is one of its most potent attributes because it also makes it difficult for anyone person or authority to shut down the network.
What is Bitcoin Cash?
It’s a “hard fork” of Bitcoin, which means that it has copied and then evolved the original blockchain ledger.
Bitcoin cash is also capped at 21 million coins but can be divided into eight decimal points. In addition, it has a block size limit of 8MB compared to 1MB in Bitcoin, meaning that transactions are processed about four times faster. The big question is which of these two cryptocurrencies will win out in the long run.
Bitcoin cash supporters argue that more giant blocks are necessary for a cryptocurrency to be scalable and compete with traditional payment processors such as PayPal or Visa. Still, others say that this makes it more challenging to keep track of transactions. Furthermore, one of the major selling points of cryptocurrency, anonymity, is lost in a network that adopts more giant blocks because the ledger becomes more transparent.
There are also security concerns about cryptocurrency exchanges and wallets adopting Bitcoin cash since it would create another layer of complexity in the already convoluted workings of digital currency. With so much hate and debate surrounding both currencies, it might seem like the introduction of Bitcoin cash would hurt Bitcoin, but some experts think that it could benefit its rival. Bobby Lee, CEO of China’s first Bitcoin exchange BTC China argued this point at the Singapore Management University on Wednesday, saying the split will help resolve Bitcoin’s capacity problem and legitimize both currencies.
Understanding more about Bitcoin Cash!
The Bitcoin Cash community is at odds with other crypto communities because it supports a larger block size than Bitcoin does. This allows the Bitcoin Cash community to process more transactions in each block, increasing current transaction speeds.
The Bitcoin community has not increased its block size and has enabled Segregated Witness (SegWit), separating the cryptographic witness signature from the transaction identifier. The Bitcoin Cash community believes this move by Bitcoin to enable SegWit enhances scalability because it also reduces the weight of transactions in each block.
Essentially, the Bitcoin cash community views larger blocks as a solution to scaling and the use of SegWit as a stop-gap measure.
The Bitcoin community vehemently disagrees and argues that decentralization and security will decrease by increasing block sizes because fewer nodes will be able to run full nodes. Furthermore, they argue that mining operations would become more centralized in the hands of a few wealthy miners with large amounts of capital to purchase specialized, expensive mining equipment.
In contrast, the Bitcoin community views SegWit as a more secure option because it reduces the size of transactions and reduces the number of things that can go wrong with each transaction.
There are many other fundamental changes between Bitcoin and Bitcoin Cash. However, one of the most fundamental differences is that BTC can send transactions between users almost instantly, whereas BCH transaction speeds are significantly slower.
In the cryptocurrency world, there is a lot of discussion between those who support Bitcoin and those who support Bitcoin Cash, to know more you can check more about benefits of trading platform. Many fundamental differences separate the two cryptocurrencies. Yet they are often linked because specific individuals and businesses see them as compatible alternatives to each other.