In 2008, mysterious Satoshi Nakamoto revolutionized the financial world by introducing the world’s first cryptocurrency: Bitcoin. This release sparked intrigue throughout the financial and investing world.
The idea behind Bitcoin was to have a decentralized currency that could remain free from inflation risks. To achieve this, the company determined to cap the number of Bitcoin at 21 million. However, over time, Bitcoin developers began to disagree about Bitcoin’s purpose.
Among Bitcoin’s developers, many wanted to move Bitcoin towards being a more useable currency. As such, in 2017, these developers launched Bitcoin Cash as a spinoff.
While Bitcoin and Bitcoin Cash have many similarities, they also have differences. We’ll explore these differences in the guide below!
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Bitcoin vs. Bitcoin Cash: Which Processes Faster?
The primary difference between Bitcoin and Bitcoin Cash is the size of the blocks on each of their chains. Bitcoin Cash launched with a block size of 8 MB compared to its predecessor’s 1 MB size. Currently, Bitcoin Cash has a 32 MB block size.
Why does this matter? The size of the blocks on a cryptocurrency’s blockchain helps determine its processing speed. As a result, because Bitcoin Cash has a much higher processing speed than Bitcoin.
Bitcoin Cash can process approximately 116 transactions per second, compared to Bitcoin’s seven. This processing speed allows you to make many more transactions on a Crypto Exchange.
Bitcoin Cash’s Use
Because Bitcoin Cash aims for use as a currency, it’s no surprise that you can use it as a medium for exchange. You can use it to buy products at much more everyday speeds than Bitcoin allows.
Bitcoin’s slower processing speed makes it a much more inconvenient currency for typical transactions like buying dinner. Instead, Bitcoin functions much better as a means of paying for large purchases.
However, there is a caveat to this. Although Bitcoin Cash processes much more quickly, the spinoff is not as widely accepted as the original Bitcoin. While Bitcoin continues to gain acceptance among leading businesses, those businesses are warier of Bitcoin Cash.
How to Buy Bitcoin Cash
If you’re an investor, you may be wondering whether you should invest in Bitcoin Cash instead of Bitcoin. There are several benefits to this investment, most notably the affordability of Bitcoin Cash’s price.
At the time of writing this article, Bitcoin has suffered a significant decline in value. Currently, one Bitcoin is equivalent to $31,520.00.
In contrast, Bitcoin Cash has experienced an increase in value, currently costing $419.82. As you can see, Bitcoin Cash is a much more affordable investment.
However, Bitcoin Cash has far less reputability than its predecessor. It’s been much slower in gaining mainstream acceptance as well. Before investing in Bitcoin Cash, it may be wise to consult a broker about whether it will meet your portfolio goals.
Determine Whether Bitcoin Cash Is Right for You
Bitcoin Cash has several features that could make it a worthwhile resource. Investigate further and decide whether this currency could serve your financial goals.
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