Bitcoin Came First. Then Came Bitcoin Cash.
If you’ve been in the cryptocurrency space, you’ve definitely heard of Bitcoin. Bitcoin was the first cryptocurrency, and is by far the most popular. Bitcoin is a digital currency that can be used to buy, sell and trade everyday items. For the first 8 years of its existence, Bitcoin was the only crypto named ‘Bitcoin’.
Fast forward to 2017, when a new cryptocurrency was created called ‘Bitcoin Cash’. With similar names, you may be wondering what’s the difference between the two? In this blog post, Coin Cloud explains the difference between Bitcoin and Bitcoin Cash.
Bitcoin was the first ever cryptocurrency introduced to the world. Bitcoin exists on a public ledger, called blockchain, making it completely decentralized and not owned by a single entity. All transactions that occur on the blockchain are final and unable to be tampered with.
Bitcoin presents its users with a plethora of benefits. Some of these include, but are not limited to:
● Protection against fraud
● Low transaction fees
● International transactions
● Secure payments
● And many more
When Bitcoin was first launched, it was slow to catch on in the mainstream. That has since changed, as we are now seeing some of the longest-standing institutions accepting bitcoin and/or building products that allow customers to utilize Bitcoin and its underlying technology, blockchain.
What Is A Fork?
Bitcoin Cash is a fork of Bitcoin. A fork is created when the original code of a blockchain is updated, but only some of the nodes on the blockchain accept the update. The original blockchain remains the same and new nodes split off and create their own blockchain. The coins on this new blockchain also become separate from the coins on the original blockchain. When this happens, anyone that was holding Bitcoin when the fork happened will automatically get an amount of the forked coin equal to the amount of Bitcoin that they were previously holding.
What Is Bitcoin Cash?
Bitcoin Cash is just like Bitcoin in that it’s a digital currency that exists on its own blockchain. Bitcoin Cash didn’t come to light until late 2016/early 2017, making it a lot newer than Bitcoin.
Bitcoin Cash was created when a few Bitcoin developers couldn’t come to an agreement about changes that should be made to the blockchain. As a result, a group of those developers went ahead and created a new version that included a few minor alterations.
Some of the changes made to Bitcoin Cash’s blockchain include:
● Bitcoin Cash has cheaper transaction fees
● Bitcoin Cash has faster transfer times
● Bitcoin Cash can handle more transactions per second
All of these changes are a direct result of Bitcoin Cash’s blocks being eight times larger than those of Bitcoin.
Which Is Better?
Deciding to buy Bitcoin or Bitcoin Cash ultimately comes down to personal preference. Both cryptocurrencies have their own pros and cons. On one end, Bitcoin is the older and more established cryptocurrency of the two. Because of this, Bitcoin can be more widely used for everyday purchases. Most big companies have already begun accepting Bitcoin or will be very soon.
On the other hand, Bitcoin Cash is a bit cheaper and faster. These benefits can be quite enticing to cryptocurrency investors. However, because Bitcoin Cash is the newer of the two, it doesn’t have as much investor confidence as Bitcoin. This can deter people from investing in the crypto, especially those that are new to cryptocurrency. This is important because remember, a cryptocurrency derives its value from its utility. If people aren’t using it, it holds no value.
Today, Bitcoin seems to be the one winning this battle, but don’t sleep on Bitcoin Cash. In the coming years, Bitcoin Cash is poised to gain some major share in the crypto market.
What Is Coin Cloud?
Coin Cloud is a Bitcoin ATM company headquartered in Las Vegas, Nevada. With over 627 locations nationwide, Coin Cloud boasts one of the largest and fastest-growing networks of two-way Bitcoin ATMs in the world. Our network has helped more than 144,000 customers buy and sell cryptocurrency since opening our doors in 2014. To find your nearest Bitcoin ATM, please visit CoinCloudATM.com.