What is the difference between Bitcoin and Bitcoin Cash?

Several blocks make a blockchain. The size of a block refers to the amount of data it stores. The greater the size of a block, the greater the number of transactions it can hold. The size of the block directly impacts the speed and capacity of the network. Therefore, networks using Bitcoin Cash (32MB block size) have faster processing rates than those using Bitcoin (1MB block size).

Mining in cryptocurrency refers to the process by which new transactions are verified and added to the blockchain. Different cryptocurrencies use different mining algorithms. In the beginning, Bitcoin Cash’s mining algorithm was easier to use than Bitcoin’s. The difficulty of mining indicates how quickly a block can be discovered and added to the blockchain. To discover a block, miners need to solve a complex cryptography problem. 

While easily discoverable blocks can improve transaction times, they can also spell doom for the cryptocurrency. Why? If the mining process becomes too easy, the price of the currency will experience high inflation rates and eventually become devalued. This is what happened with Bitcoin Cash around the time of inception. At first, its simpler algorithm attracted plenty of miners. 

Over time, with the complexity of the algorithm remaining the same, more and more miners joined the network. Gradually, this raised questions about Bitcoin Cash’s profitability, resulting in miners dipping in and out of the network. This led to block times becoming highly unpredictable. To tackle this problem, Bitcoin Cash introduced a dynamic mining algorithm that would get more difficult or easier as required. As a result, the Bitcoin Cash blockchain is far more consistent now.

Both Bitcoin and Bitcoin Cash have their merits. Here’s a comparison to give you a better idea:

Cryptocurrencies are volatile in nature. It means their prices are prone to significant market movements. Both Bitcoin and Bitcoin Cash are thus volatile assets, and it’s difficult to say which one is better than the other or whether either is a good investment or not. Where you decide to invest your money typically depends on your risk appetite and also your investment objective. Therefore, it’s worth researching your investment options and learning more about cryptocurrency before deciding which coin to buy. 

In general, one can say that Bitcoin, at least until now, has stood the test of time. It has remained a dominant cryptocurrency worldwide since it was launched, but that doesn’t mean it is a safe or risk-free investment. Bitcoin Cash is also a fork of Bitcoin, but it has achieved faster transaction speeds, and it is relatively cheaper. However, it isn’t a dominant name in the cryptocurrency market.  

For those who want to invest in Bitcoin but wish to start small, Bitcoin Cash or other forks of Bitcoin, like Bitcoin Diamond, might be worth investigating. Bitcoin Cash is also more liquid than Bitcoin, making it more suitable as a medium of exchange for day-to-day purchases than a long-term store of value.

If you’re considering investing in either Bitcoin or Bitcoin Cash, you’ll find them both listed on most cryptocurrency exchanges. Once you find a suitable cryptocurrency exchange platform, you’ll broadly need to follow these steps to purchase your preferred crypto: 

• Create an account on a crypto exchange platform
• Deposit fiat currency
• Look for your preferred crypto
• Purchase the quantity you want and store it safely in your crypto wallet 

You can compare different cryptocurrency exchanges to check the features, fees and benefits offered by each before selecting a suitable platform. It’s also worth learning about the risks of cryptocurrency trading before investing your money in any crypto asset like cryptocurrency coins or crypto art.