Cryptocurrency

Bitcoin vs Bitcoin Cash: Comparative Analysis of BTC vs BCH

Bitcoin vs Bitcoin Cash: A Comparative Analysis

What is Bitcoin?

Bitcoin is the very first crypto developed by an anonymous developer ‘Satoshi Nakamoto’. The crypto was designed to act as parallel fiat money, removing the necessity of any third-party interference in any financial transactions. Unlike traditional assets, Bitcoin is created, distributed, traded, and stored within a decentralized ledger called a blockchain, using cryptography. 

The blockchain works on a Proof-of-Work consensus algorithm, where the Bitcoin miners compete among themselves to validate a block by solving a complex mathematical puzzle at the earliest. Once the block is added to the blockchain, the miner is rewarded with 6.25 BTC. To keep the platform secured, the chain uses an SHA-256 hashing algorithm which encrypts the data and stores it in the blocks on the blockchain. 

Bitcoin recently implemented one of the most important upgrades in the past 4 years called the Taproot. The upgrade aims to make Bitcoin faster, more efficient & private while allowing multiple signatures. 

 

Latest Bitcoin News:

  1. Bitcoin hash rate retakes All-Time-High

What is Bitcoin Cash?

Bitcoin Cash is a hard fork of Bitcoin that occurred in August 2017 allowing more transactions to be processed in a single block and the platform to be more scalable. Bitcoin was originally created with a block size of 1MB and due to this, the blocks queued up for confirmation. Therefore, Bitcoin Cash proposed to increase the block size between 8MB to 32 MB to enable faster transactions. 

Both Bitcoin & Bitcoin Cash use the same consensus mechanism & the total supply but share a huge philosophical difference. As both worked on Proof-of-Work, they also used the same mining difficulty algorithm called Emergency Difficulty Adjustment(EDA) which adjusts the difficulty every 2016 block or 2 weeks. Woefully, miners took the advantage of this similarity and altered their mining activity between Bitcoin & Bitcoin cash. 

Moreover, the miners began to increase the circulating supply of Bitcoin Cash in the market as it was profitable. Hence the platform revised its EDA algorithm to make the whole process easier. Further, Bitcoin Cash underwent a hard fork and was split up into Bitcoin CashSV & Bitcoin Cash ABC. The ABC is the original version of Bitcoin Cash in use. 

Bitcoin vs Alogrand: Comparative Analysis

Coin Name Bitcoin Bitcoin Cash
Launch Date 3 January 2009 1 August 2017
Founder Satoshi Nakamoto Craig Wright
Blockchain Protocol Bitcoin Blockchain Bitcoin Blockchain 
Native Token   BTC BCH
Market Cap $$378.99 billion $2.26 billion
Token Type Native Native
Circulating Supply 19.51 million 19.17 million
Max Supply 21 million 21 million
Consensus Method Proof-of-Work Proof-of-Work

Technical Analysis of Bitcoin Price vs Bitcoin Cash Price

Source: Tradingview

  • Bitcoin & Bitcoin Cash apart from being very closely related also share similar price action in the recent times
  • However, Bitcoin Cash displayed huge price variations, while Bitcoin maintained a consistent descending trend
  • The BTC/USDT dropped from the highs at +1.97% and reached the lows at -22.84% and presently trading at -18.81%
  • Conversely, BCH/USDT price tested the highs at -2.73% & -10.38% a couple of times, and is trading at -21.50% at the moment.

Bitcoin Cash vs Bitcoin Price Prediction

Bitcoin Price Prediction 2022

Bitcoin price underwent a huge upswing in 2021 and also led the crypto bull rally during the same time. Ever since the price reached its peak in the last couple of months of 2021, the price has been stuck within a deep bearish trend which is being continued till now. The BTC price during the first half of 2022 attempted to rebound but eventually continued testing new lows. Moreover, multiple events that created huge FUD negatively impacted the price.

While the Q3 close is on the cards, the token is expected to maintain a descending consolidated trend and could recover to some extent later in Q4. The BTC price during the Q3 close may continue to trade around $20,000 and rise slightly during the first few weeks of Q4. By the mid of Q3, the price may reach beyond $25,000 and close the yearly trade between $27,000 to $30,000. In a bearish case, the Bitcoin price prediction is around $25,000 by the end of 2022.

Bitcoin Cash Price Prediction 2022

Bitcoin Cash also shares a similar trend, but it has been trading within a bearish trend for more than a year. The price constantly formed lower highs and lows, maintaining a steep descending trend. For the past couple of days, the price has been trading flat without manifesting any significant variations. Despite the volume maintaining a decent range, the price failed to rise which indicates equal pressure on either side. 

The BCH price during the latest upswing had broken the descending triangle and surged but the previous day’s plunge dragged the token back into the bearish pattern. Hence the Q3 closes are expected to be on a bearish note, while the possibilities of shedding below $100 also emerge. By the end of 2022, the BCH price prediction is that it may drop heavily and form new lows, but recover and trade between $110 to $125.

Additional Read: Bitcoin Cash Technical Analysis

Pros & Cons: Bitcoin vs Bitcoin Cash

Bitcoin Pros Bitcoin Cash Pros
Accessibility & liquidity Faster, less expensive transactions
User Anonymity & Transparency More scalable than Bitcoin
High potential return Decentralized money, is not controlled by any entity
Independent from a central authority More accessible

 

Bitcoin Cons Bitcoin Cash Cons
Highly volatile & irreversible Low adoption rate
Not widely accepted Weaker security
A little complex to understand for a beginner Low branding compared to Bitcoin
Risk of unknown technical flaws Hazardous to environment

Is Bitcoin Cash better than Bitcoin?

The crypto markets have been evolving every new day manifesting fresh twists and turns. Therefore, investing in any of the crypto assets has been extremely exciting in recent times. However, it is very important to conduct thorough research before diving into investing into crypto. While the price of Bitcoin Cash has plateaued, Bitcoin appears to be preparing to rise high and lead the entire crypto space towards new highs. While the course of time remains misty, the upcoming upward action may be imminent.

In the coming days, Bitcoin vs Bitcoin Cash  are expected to display a remarkable trend where-in the prices may surge high with double-digit gains. Therefore, get into DYOR before choosing any crypto assets to invest in.

How to Buy Bitcoin and Bitcoin Cash?

You can buy Bitcoin or Bitcoin Cash very easily here on CoinDCX. We are India’s leading crypto exchange, offering a wide variety of crypto assets to deal with. All you need to do is download the CoinDCX App on your Smartphone and register to enter your details. Later a verification of your profile is carried out, which usually takes a couple of minutes. 

Once done, fund your wallet and Buy Bitcoin or buy Bitcoin Cash or both!

Additional Read: How to buy Bitcoin in India

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