Technology has encountered giant leaps in the recent past, manifesting its significance in every walk of life. The finance realm is no exception! With a vast expanse of cryptocurrency sprouted late, this article presents a comparative analysis between Bitcoin (BTC) and Bitcoin Cash (BCH). The idea is to educate cryptocurrency investors to perceive the pros and cons of the two and make wise business decisions.
Overview of Bitcoin (BTC)
Bitcoin can be comprehended as the maiden virtual currency that behaves like currency and as a means of transaction far away from the direct control of a particular financial firm, bank, or individual. Thereby, Bitcoin eliminates the need for a third-party regulatory board and its associated procedures.
It was cradled in 2009 by many passionate developers under Satoshi Nakamoto’s banner. Since then, Bitcoin has emerged as a source of inspiration. Numerous cryptocurrencies have been created by efficient miners who make indelible impressions carving niches!
Overview of Bitcoin Cash (BCH)
Launched in 2017 as an outcome of the Bitcoin hard fork, Bitcoin Cash shares many similarities with Bitcoin on the technical front despite their philosophical differences. It uses the well-known consensus mechanism, just like Bitcoin.
However, Bitcoin Cash subsequently encountered a hard fork, which split it into Bitcoin Cash ABC and Bitcoin Cash SV. It was later, in 2021, that Bitcoin Cash ABC was renamed to eCash. This is a Proof-of-Work blockchain network with faster transactional speed. We will further focus on its similarities and differences with Bitcoin in this article.
Bitcoin Cash V/S Bitcoin: Key Differences
To the question of why BCH is better than BTC? or the other way around, you’ll find the reason here. The prime differences between Bitcoin Cash and Bitcoin are discussed below.
Market Cap – Bitcoin’s market cap is high and reaches nearly $400 billion, while Bitcoin Cash’s is below $2 billion.
Speed of Transactions – The block size of Bitcoin is around 1 MB of data and hence has a low transaction speed, accomplishing only 3 to 7 transactions per second. However, Bitcoin Cash has a block size of as much as 32 MB, performing over 100 transactions per second.
Fee charges – Though Bitcoin’s mean transaction fee lingered around $1-2, it had surged to $60 per transaction. On the other hand, Bitcoin Cash’s transaction fees are generally too minimal to the extent of just a fraction of a cent.
Security – By limiting Bitcoin’s block size and transaction count, there is room for improved security. Bitcoin Cash, on the other hand, expanding the block size and number of transactions makes it less secure.
Price Action: Bitcoin Cash v/s Bitcoin
Bitcoin Cash price prediction anticipates that the price of BCH will exceed the $397 mark by the close of 2023. Parallely, Bitcoin’s price prediction expects BTC to surpass $64,732.93.
The BCH price prediction for 2025 foretells the future of BCH to be brighter and could touch the $597 mark when 2025 ends, while Bitcoin’s is expected to go beyond $100,000.
The 2030 BCH price prediction signifies that the currency might reach the utmost price mark of $1740 and for BTC to touch the highest level of $313,600.
So, “Should I invest in BTC or BCH?” Here is the answer to your much-awaited question – By nature, cryptocurrencies are vulnerable to volatility, and so are their associated risks. Opting for BTC or BCH depends on the nature of your endeavor and investment goals.
For example, BTC might not go well with confident investors, while BCH goes well with small investments that resemble BTC in numerous ways. BTC sounds suitable for investors seeking a longer duration store of value, while BCH suits those wishing to make crypto cash for daily purchases.
The performance of the hard fork also ought to be taken into consideration. It is advisable to analyze which crypto fits your business and go for it with all confidence, determination, and positivity.