Bitcoin and Bitcoin Cash are two completely different cryptocurrencies that are commonly mistaken for each other by those new to the cryptocurrency space. After all, if you’re buying both with cash, what’s the difference? What you might not know is that there’s a story behind the two cryptos, and why the Bitcoin/Bitcoin Cash fork came to be. This week, we’re demystifying the confusion surrounding the two popular cryptos once and for all!
What is Bitcoin?
Bitcoin was created in 2009 by an individual or group of individuals using the pseudonym “Satoshi Nakamoto”. It was the first cryptocurrency to use a decentralized, peer-to-peer network to process transactions, and is based on blockchain technology. Bitcoin is the first and most widely-used cryptocurrency in the world, and it has been the basis for many other cryptocurrencies that have been created since its inception.
What is Bitcoin Cash?
Bitcoin Cash was created in 2017 as a result of a disagreement within the Bitcoin community about the direction and future of the cryptocurrency. The main issue at the center of the disagreement was the block size of Bitcoin, which was limited to 1 megabyte (MB). Some members of the community believed that the block size should be increased to allow for more transactions to be processed per second, while others believed that the block size should remain the same.
The group that advocated for an increase in the block size proposed a software upgrade called “Bitcoin Cash” (BCH), which would increase the block size to 8 MB. This upgrade would require a hard fork of the Bitcoin blockchain, meaning that the new version of the blockchain would be incompatible with the old version.
On August 1st, 2017, the Bitcoin Cash hard fork was implemented and the new cryptocurrency was created. The Bitcoin Cash blockchain used the same transaction history as the Bitcoin blockchain up until the point of the fork, but it implemented the increased block size and other changes.
It’s important to note that at the time of the fork, holders of Bitcoin automatically received an equivalent amount of Bitcoin Cash, This means that if you held 1 Bitcoin before the fork, you would now have 1 Bitcoin and 1 Bitcoin Cash.
The creation of Bitcoin Cash has led to increased competition within the cryptocurrency space, and it has also led to a significant increase in the number of transactions that can be processed per second. Some proponents argue that the larger block size of Bitcoin Cash makes it more suitable for everyday transactions, while others argue that the smaller block size of Bitcoin is more secure and less susceptible to centralization.
Is One Better Than the Other?
It depends on what you’re looking for in a cryptocurrency, as both Bitcoin and Bitcoin Cash have their own unique features and advantages.
Bitcoin, as the first and most widely-used cryptocurrency, has a larger network and greater brand recognition. It has also been around for longer and has a more established track record. Bitcoin is also considered to be more secure due to its smaller block size, which makes it less susceptible to centralization.
On the other hand, Bitcoin Cash has a larger block size, which allows for more transactions to be processed per second. This feature makes Bitcoin Cash more suitable for everyday transactions, such as buying goods and services. Bitcoin Cash also has lower transaction fees compared to Bitcoin, which can be beneficial for small transactions.
Ultimately, the choice is yours. If you’re looking to buy Bitcoin or Bitcoin Cash, you can do so at our RockItCoin Bitcoin ATM locations near you!