First Came Bitcoin. 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 cryptocurrency out there. 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, and a new cryptocurrency was created called ‘Bitcoin Cash’. With similar names, you may be wondering what the difference is 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.
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 to 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 occurreed will automatically get an amount of the forked coin equal to the amount of Bitcoin they were previously holding.
Bitcoin Cash is just like Bitcoin in that its 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 that were 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.
Deciding to buy Bitcoin or Bitcoin Cash ultimately comes down to personal preference. Both cryptocurrencies have 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 began accepting Bitcoin, or will be very soon.
On the other hand, Bitcoin Cash is 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 marketshare in the crypto market.
To buy or sell either Bitcoin or Bitcoin Cash with cash, visit your nearest Coin Cloud BTM.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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