Bitcoin (BTC) has long dominated crypto conversations. Bitcoin Cash (BCH), which is distinct from Bitcoin, is far less famous than its namesake. But it is interesting in its own way, from how it came to be to who followed its lead.
First off: Bitcoin Cash is neither Bitcoin nor physical cash. It forked from Bitcoin and was intended as a currency for day-to-day use, like cash. Hence the name: Bitcoin Cash.
So how does Bitcoin Cash compare to regular Bitcoin? Let’s look at what the two do, and don’t, have in common.
First, A Little History
When Bitcoin began to attract a broader audience in the early and mid-2010s, the increased attention led to an increasing number of transactions, pushing Bitcoin’s blockchain near its limits. This higher volume slowed transaction-processing speeds while, simultaneously, transaction fees increased.
In 2017, a faction of Bitcoin miners and developers concerned about Bitcoin’s scalability initiated a “hard fork,” creating a separate blockchain that begat Bitcoin Cash. The new blockchain implemented larger blocks to address challenges experienced by Bitcoin’s smaller blocks. (Bitcoin developers also addressed these challenges but in a different way.)
Fun fact: Bitcoin Cash experienced its own fork in 2018, which produced Bitcoin ABC and Bitcoin SV cryptocurrencies.
Bitcoin vs Bitcoin Cash: Differences & Similarities
Because Bitcoin Cash’s blockchain uses bigger blocks, it processes transactions faster than Bitcoin. Faster processing typically results in lower transaction fees. But that doesn’t make it better. Bitcoin beats out Bitcoin Cash in many significant ways, including price per unit, market cap, transaction volume, number of exchanges, and news coverage.
Still, the two have much in common. Both run on decentralized blockchains. Each has a hard cap of 21 million coins. Both use a proof-of-work process for mining.
The Bottom Line
Bitcoin Cash continues to carve out its own identity despite any confusion its name has caused. Eventually, it may function alongside Bitcoin, fulfilling a slightly different niche than its cryptocurrency big sibling. We look forward to seeing it grow!
What are your thoughts about Bitcoin Cash? Share them in the comments.
Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!