Bitcoin vs Bitcoin Cash: Comparative Analysis of BTC vs BCH

Introduction

Bitcoin’s inception in 2009 marked the beginning of what we call today “crypto space,” Undoubtedly, it is still the most popular crypto. But being the oldest crypto Bitcoin also has some major issues, mainly in transaction processing volume, which limits its use cases and payment utility in this rapidly evolving space. To address these flaws, a new crypto Bitcoin Cash was launched, and in this article, we will understand the difference between this similar-sounding but not the same: Bitcoin and Bitcoin Cash, their key features, and more.

What is Bitcoin?

Bitcoin, often called “OG crypto,” was launched by an Anonymous developer group or individual- Satoshi Nakamoto. It was created to act similarly to the fiat currencies but without any centralized authority and financial institutions controlling it. 

Bitcoin was designed to operate in a decentralized manner and serve as a method of value storage, for this, it operates through a publicly distributed ledger – blockchain. This blockchain uses a consensus algorithm called Proof of Work (PoW), in which miner nodes validate transactions and create a block by competing to solve a complex computational puzzle. The miner who guesses the correct answer at the earliest gets to validate the block and earn a reward (presently ~6.25 BTC).

Read More: Bitcoin vs Ethereum

Key features of Bitcoin

• As the Bitcoin blockchain works decentralized, no central authority like the government and financial institutions controls your funds.
• The Bitcoin network is secured by a cryptographic hashing algorithm, SHA-256, that encrypts transaction data then stores it on the blockchain network.
• Transactions recorded on the Bitcoin blockchain are publicly available to view, so there are no chances of fraud and scams.
• Bitcoin has gained traction in crypto communities as a value storage, and some even consider it as a digital gold and hedging instrument.
• Bitcoin crypto is a deflationary asset, with its total supply capped at 21 million coins.

Additional Read: Bitcoin Halving 2024 

Latest Bitcoin News

• Following up on BlackRock’s application for the spot Bitcoin ETF, Fidelity, Invesco, Wisdom tree have also joined the race. Investors and companies are eyeing proposal approval from US Securities and Exchange Commission (SEC).

Fun being on @LizClaman show!! And yes, @BlackRock getting a $BTC ETF through would be the best thing that could happen to $BTC. https://t.co/2fFBeB9eyo

— Mike Novogratz (@novogratz) June 16, 2023

What is Bitcoin Cash?

Before we get into Bitcoin Cash and its features, we need to understand issues in Bitcoin’s scalability and its debate. The flaw in Bitcoin’s design is its block processing capacity, which allows the processing of around 7 transactions per second.

When there’s a surge in network usage, the blockchain struggles to keep up with transactions, resulting in a backlog and users waiting longer for their transactions to be confirmed. Furthermore, the Bitcoin network prioritizes transactions on the basis of attached fees and during network congestion, this fee even goes to point, making it unaffordable for some users to transact. 

To overcome this issue, the Bitcoin community of developers and miners proposed the Segregated Witness upgrade. The SegWit adjusts the block size from 1 MB to 2 MB, by segregating the signature data out to enable more space for transactions. While the proposal was accepted by the majority of the community, some argued that it fell short in terms of scalability and could deviate Bitcoin’s original vision. As a consequence of the community division, hard fork- Bitcoin Cash was created.

Bitcoin Cash proposed increasing the block size to 8MB-32MB, enabling more transactions to be processed with faster confirmation. The hard fork occurred in August 2017 at block 478,588 and Bitcoin Cash inherited Proof of Work consensus, mining difficulty, and total supply from Bitcoin. However, the mining difficulty was later changed as miners started switching mining activity Bitcoin Cash and Bitcoin to earn more profits. 

Key features of Bitcoin Cash

• The increased block size of Bitcoin cash reduced network congestion as well as lowered translation fees.
• Bitcoin cash processes transactions at a faster speed at cheap costs making it suitable for regular payments.
• Bitcoin cash is also decentralized with a thriving community that actively participates in development to make the network more robust and secure.
• Bitcoin Cash is believed to follow Bitcoin creator Satoshi Nakamoto’s original vision.
• BCH crypto has a total supply of 21 million and a market cap over $5 billion as of June 20, 2023.

Latest Bitcoin Cash News

• Bitcoin Cash went through a major upgrade on May 15, 2023. This enables support for CashTokens, future proof multipart vaults and other technical improvements for transaction validation. CashTokens are tokens with similar properties as BCH and can be created by anyone.

Congrats on the 2023 upgrade, Bitcoin Cash! 🎉

Beginning with block #792773 (000000000000000002fc0cdadaef1857bbd2936d37ea94f80ba3db4a5e8353e8), $BCH supports #CashTokens, future-proof multiparty vaults (P2SH32), and several non-breaking technical improvements to TX validation.

— Jason Dreyzehner (@bitjson) May 15, 2023

Comparing Bitcoin Cash vs Bitcoin

Here’s a brief comparison of Bitcoin and Bitcoin Cash DEXs:

Key Differences between Bitcoin vs Bitcoin Cash

• Bitcoin has a block size of 1 MB while Bitcoin cash has been upgraded to a block size limit of 32 MB, which means Bitcoin Cash can process more transactions than Bitcoin.
• Bitcoin transaction throughput is about 7 TPS(transactions per second), Bitcoin Cash transaction speed can go upto 100 TPS.
• Bitcoin does not support creation of smart contracts and DeFi applications, while Bitcoin Cash developers can build various decentralized projects with Cash Script programming language.
• Bitcoin allows users to cancel unprocessed or stuck transactions in the network, which sometimes might result in double spent. For this reason, Bitcoin Cash eliminated it and implemented a double spent check feature. 
• BTC and BCH have the same maximum supply of tokens, but they differ dramatically in market cap. BTC has a market cap of over 500 billion which is 100 times greater than BCH coin.

Bitcoin (BTC) Price Prediction

• BTC price today is running at $30501, with a 24-hour trading volume of $14 billion. The BTC price has gained about 0.85% during the last 24 hours with its market cap of standing at $592 million as on June 28, 2023.
• BTC price has performed quite well overall since the beginning of the year, It has managed to recover about 22% from its recent drop to $25000.
• Though BTC is currently gaining, the market seems to need more strength, but BTC price has potential of touching $30500 in the upcoming weeks. 

Read On: Bitcoin Price Prediction

Bitcoin Cash (BCH) Price Prediction

• BCH price today is trading at $245.21, with a 24-hour trading volume of $1 billion. The BCH price has risen by 7.78% during the last 24 hours with its market cap of standing at $5 million as on June 28, 2023.
• BCH price has been oscillating in a consolidated range of $100.76 and $135.74 since August 2022. It finally has broken this range touching a new high of $247.52.
• BCH price present movements appear very bullish and it can possibly cross $260, if the same continues.

Know More: Bitcoin Cash Price Prediction

Should you buy BTC or BCH?

Crypto markets are full of unexpected twists and turns, heavily influenced by the sentiment of communities and news events, similar to the vision shift that happened in the Bitcoin community giving birth to hard fork Bitcoin Cash. 

Over the years, Bitcoin has experienced remarkable growth solidifying its position as the largest cryptocurrency with a market cap of $595 billion. Crypto inventors are building scaling solutions like Stacks, RootStock and SegWit upgrade around Bitcoin to overcome its scalability issues, thanks to it Bitcoin derivatives like ordinal NFTs, smart contracts and decentralized applications are becoming a reality. 

Bitcoin Cash, born from this visionary shift, has managed to scale its transaction speed to over a 100 TPS, making it suitable for everyday payments by individuals and enterprises alike and its market capitalization is standing at $5 million. While the future remains uncertain, the upcoming price movements of both Bitcoin and Bitcoin Cash may be imminent. Hence, it depends on investors’ individual interest and risk appetite which one to choose, so always do your own research before investing in cryptos.

How to invest in Bitcoin (BTC) and Bitcoin Cash (BCH)

Investing in Bitcoin BTC or Bitcoin Cash BCH is extremely simple, fast and secure with the CoinDCX App. All you need to do is register on the platform. To register, follow the below-mentioned steps:

• Download CoinDCX App
• Register by entering your details.
• Complete KYC and verify your mobile and email.
• Once your profile is validated, add funds to your wallet
•  Buy BTC or BCH.