Bitcoin is one of the most prominent cryptocurrencies in the market and has reached $55,000 and more in the past. The high valuation of cryptocurrency in the market can be attributed to the buzz that has been created about its importance and utilities for more than a decade. Its cultural value and scarcity are responsible for the remarkable prominence it holds in the modern world economy. It is suggested that you buy Bitcoins from a trusted, and credible official trading site to avoid being scammed. Bitcoin is not to be confused with Bitcoin Cash, which came into existence in 2017. Bitcoin Cash was designed to address an issue that is faced while dealing with Bitcoin transactions. Bitcoin allows a low volume of transactions to be carried out per second, while Bitcoin Cash brings an opportunity of carrying out transactions at a faster speed and a much cheaper rate.
How Bitcoin Cash trumps Bitcoin in terms of transaction speed
The main difference between Bitcoin and Bitcoin Cash is the fact that they have very different block sizes. While Bitcoin limits its block size to 1MB, the block size of Bitcoin Cash lies at 32MB, which was initially set at 8MB. The higher the block size that gets embedded in the blockchain, the more transactions it can process in a second. Bitcoin, therefore, only allows 7 transactions to be recorded per second, while the number for Bitcoin Cash goes above 100. This makes Bitcoin Cash much faster than Bitcoin in terms of transactions carried out per second. Thus, Bitcoin Cash can prove to be advantageous for users that intend to carry out a lot of transactions, or need their transactions to be validated quickly!
Other advantages of Bitcoin Cash over Bitcoin
In addition to the faster transaction speeds, Bitcoin Cash provides several other advantages as well. These advantages include higher scalability, owing to the larger block sizes. Increased scalability of the blockchain compounds lower fees for blockchain users, which makes it a better choice for transactions. Out of all the cryptocurrencies present in the market, Bitcoin Cash is one of the more popular ones, and one can buy and sell Bitcoin Cash over major Bitcoin Trading Platforms. The cost of Bitcoin Cash is very low, when compared to Bitcoin Prices. These factors make Bitcoin Cash a more accessible cryptocurrency for the masses. However, these advantages are not enough to decide whether one should invest their hard-earned money into Bitcoin Cash. Let us discuss some of the disadvantages that work against Bitcoin Cash.
Disadvantages of Bitcoin Cash
Although some technological aspects of Bitcoin Cash are superior to that of Bitcoin, it is yet to catch up to the mainstream market. The adoption rates are pretty low, and the number of users using Bitcoin Cash is pretty low, in comparison to Bitcoin. It is to be noted that the faster transaction speed of Bitcoin Cash is a result of the lower mining difficulty of blocks, which compounds into more vulnerabilities. This, coupled with the higher recognition of Bitcoin in the crypto market after the fork deems Bitcoin more trustworthy. Moreover, Bitcoin Cash still functions on the Proof-of-work model and requires a lot of power consumption. These facts act against Bitcoin Cash and weaken it in comparison with Bitcoin.
While comparing Bitcoin, and Bitcoin Cash, it is important for us to acknowledge the benefits, as well as drawbacks of both currencies. While higher block sizes associated with Bitcoin Cash compound into faster transactions, when compared to Bitcoin, it comes with a trade-off in terms of security. Lower block difficulty levels make the network prone to hackers as well. One can use Bitcoin Cash while making smaller transactions. However, if you intend to make bigger transactions, for example, if you want to buy a car, you should pay with Bitcoins. The low transaction charges over the Bitcoin Cash network make it more accessible for people intending to make smaller transactions. In spite of all of these advantages, Bitcoin Cash has a long way to go, in order to achieve the market adoption rate of Bitcoin. In conclusion, one can state that both cryptocurrencies can be used for separate cases, as both come with their own benefits and trade-offs.
