We all are aware of the founding of Bitcoin (in the year 2008) by the mysterious name Satoshi Nakamoto. As per the official site, in the initial stage, the cost of Bitcoin was significantly lower, as the block size was 100KB which was significantly less. With its rising popularity, people started using it for sending and receiving (daily transactions), and the developers had raised the size of the block to one megabyte. However, some Bitcoin developers wanted to increase the block size to improve the technology, and some developers were against this change. Hence, as per the name Bitcoin Cash, the new cryptocurrency came into existence in 2017. So there is a difference between Bitcoin and Bitcoin cash that you will understand in this article.
What is Bitcoin?
Bitcoin is the cryptocurrency initiative because there were no digital currencies with decentralized systems. So in the initial stage, people were not aware of the features, but with time, it got popular with high value, and many cryptocurrencies came into existence after bitcoin. In simple words, bitcoin is the first digital coin with the feature of no third-party involvement, came in 2008 by an anonymous person called Satoshi Nakamoto. The value of bitcoin in 2008 was less than a dollar, and by increasing the number of users, its value also started increasing. The current cost is 42,623 dollars, which is significantly up compared to other digital coins.
What is Bitcoin Cash?
Bitcoin price was already on the boom at the time of the launching of bitcoin cash (the year 2017), and it also helped to pump the price of bitcoin cash. Bitcoin cash is a coin with a light theme that includes a lot of characteristics than bitcoin. The developers have produced the bitcoin cash crypto to make it fast, efficient, and with low transaction fees.
Difference between Bitcoin and Bitcoin Cash:
From the following difference, you can differential the bitcoin and bitcoin cash in the straightforward manner given below:-
- Block size:- The block in cryptocurrency means many transactions. Suppose you send bitcoin to another wallet, and it will broadcast your transaction to the blockchain network. So there will be a lot of bitcoin transactions that will co-occur, and miners will validate to complete the process. They have to create a block that means to validate a different set of transactions, and after that, they add in a block, and when the block of the transaction gets enough, it will broadcast to the blockchain. A bitcoin can store up to one-megabyte transactions in a block, which will validate five to seven bitcoins transactions per second. In bitcoin cash, the block size is thirty-two megabytes, which means multiple transactions can occur in the same block simultaneously.
- Transactional Fees: Because no third parties control or manage the bitcoin, the miner gets rewarded by the transactional fees for providing security and validating the transactions. Since bitcoin’s block size is limited, only five to seven transactions can occur per second, which will use high electrical power to solve, and the cost of solving the transactions will also increase. On the other hand, the transactional fees are low because the block size is large, and more than two hundred transactions can occur per second. That is very fast and uses less electricity than mines, and will reward them with less transactional fees.
- Profitability for miners:- Many crypto traders, investors, senders, and receivers are making money from bitcoin and bitcoin cash, but mining is also the most profitable way. In bitcoin mining, miners get a reward for solving a block that is 6.25 BTC worth 2,66,398 in dollars, which is a very high reward. But it requires massive investment and effort to solve a block of transactions. Many new miners admit that bitcoin cash mining is more profitable because it is easy to mine with less computational power.
- Replacement by Fees:- There were a lot of cases of double spending in bitcoin because it takes ten minutes to validate a transaction in bitcoin, and people start sending the same coin to different wallets. Bitcoin gives the option to replace a transaction by paying additional fees to confirm the transaction fast that is stuck, but in bitcoin cash, there is no option of replacement by fees that makes it safe and secure than bitcoin.
Conclusion
From the above reading, bitcoin and bitcoin cash look similar. Still, there is a massive difference because bitcoin came first to improve blockchain technology; bitcoin cash came into existence after ten years of bitcoin launching. Bitcoin cash is a light bitcoin theme with many characteristics such as fast transactions, bigger block size, no replacement by fees, low transactional fees, etc.