When you compare Bitcoin vs Bitcoin Cash, you’ll notice they actually have much in common. Both are digital currencies that use blockchain technology, and both are decentralized.
However, there are some key differences between the two. What sets them apart, and which one is better?
Keep reading to find out.
The Origins of Bitcoin and Bitcoin Cash
Bitcoin was created in 2009 by Satoshi Nakamoto. It was the first decentralized digital currency that quickly gained popularity.
In 2017, Bitcoin underwent a hard fork, meaning that the original Bitcoin blockchain was split into two separate chains. The new chain is known as Bitcoin cash.
What Is BCH?
Bitcoin cash (BCH) is a cryptocurrency that was created to solve the problem of scalability on the bitcoin network. Namely, the original Bitcoin protocol had a limited block size of just one megabyte. This meant that the bitcoin network could only handle a small number of transactions per second.
Bitcoin cash initially had a block size of 8 megabytes. Today its block size amounts to 32 megabytes, which means it can handle more transactions per second than Bitcoin.
Now there is a lot of BCH discussion regarding scaling. Some believe that increasing the block size is not the solution because it will lead to an increase in the blockchain’s size. If this were to happen, it would be more difficult to host a full node, potentially centralizing the cryptocurrency and making it more vulnerable.
Conversely, the supporters of bigger blocks argued that a faster solution was needed because raising transaction costs might harm Bitcoin’s growth.
The debate over scalability also led to the creation of Bitcoin SV, a fork from Bitcoin cash created in 2018. The leading Bitcoin Cash vs Bitcoin SV difference can be noted in their block size. The Bitcoin SV was initially created with a 128 megabytes block size, but the Quasar Protocol Upgrade in 2019 increased its size to 2 gigabytes.
In short, Bitcoin SV was designed to preserve the original Bitcoin vision while making upgrades to enhance its transaction speed and scalability.
BTC and BCH Main Differences
Before we get into details, let’s compare the two by looking at the Bitcoin vs Bitcoin Cash chart:
|Bitcoin (BTC)||Bitcoin Cash (BCH)|
|Block Size||1 MB||32 MB|
|Number of transactions per second||7–10||116|
|Token issuance||Omni layer||Simple Ledger Protocol|
|Average transaction fees||$1.19||$0.476|
|Total supply||21 million coins||21 million coins|
Now that you know the basic differences between the two, let’s take a closer look at some of the key areas where they differ.
Block Size and Transaction Speed
The most significant difference between Bitcoin and Bitcoin cash is probably their block size. As you can see from the table, Bitcoin cash has a block size of 32 megabytes, while Bitcoin’s is just one megabyte.
Increased block size equals greater transaction speed, which is the number of transactions a network can confirm per second. In this Bitcoin cash vs Bitcoin showdown, the former is the clear winner.
Bitcoin can process about 7–10 transactions per second, while Bitcoin cash’s processing speed reaches 116 transactions per second. This also makes the transactions less expensive.
Average Transaction Fees
Another notable BTC vs BCH difference comes in the form of transaction fees. Although Bitcoin transaction fees have hit an all-time low of $2.06 in April 2022, they are still higher than Bitcoin cash transaction fees.
To put things into perspective, the average Bitcoin transaction fee amounts to about $1.19 per transaction. BCH’s highest transaction fee has yet to reach $1 and is currently around $0.047.
Token issuance is the process of creating a new token on a blockchain. The issuance of tokens is restricted by complex mathematical algorithms that define the number of tokens required for the blockchain ecosystem to operate properly.
Bitcoin uses the Omni layer, a decentralized peer-to-peer trading network that allows for the instantaneous, transparent, and simple transfer of assets between users without needing third parties.
Bitcoin Cash uses the Simple Ledger Protocol (SLP). This protocol enables developers to issue nonfungible tokens (NFTs) besides BCH.
Total Supply and Price
Both cryptocurrencies have the same total supply of 21 million. However, Bitcoin’s price is much higher than Bitcoin cash’s. As of September 2022, the cost of Bitcoin is $19,646,21, while the price of Bitcoin cash is $117.33.
The main BCH vs BTC differences can be noted in their block size, transaction speed, and price. While BTC’s block size is just one megabyte, BCH’s is 32 megabytes. This makes BCH much faster than BTC, able to confirm 116 transactions per second compared to BTC’s four.
Additionally, while both cryptocurrencies have the same total supply of 21 million, BTC’s price is much higher than BCH’s.
Is it better to buy Bitcoin or Bitcoin Cash?
Bitcoin is a better long-term investment because it has a higher market cap and a higher level of demand and acceptance.
Bitcoin Cash is a good short-term investment because it has faster transaction times, lower price per coin, and lower transaction fees.
Is Bitcoin Cash worth investing in?
Bitcoin Cash is worth investing in if you are looking for a cryptocurrency with faster transaction times, lower fees, and a lower price per coin.
On that note, Bitcoin Cash has a transaction fee of less than a penny and the ability to conduct more than 100 transactions per second, making it a potentially viable investment.
BCH is also one of the most well-known cryptocurrencies, and you can find it on a number of major exchanges. Plus, its current price is only $117.33 per coin.
Is Bitcoin Cash as big as Bitcoin?
Bitcoin Cash is not as big as Bitcoin. As of September 2022, the market cap for BTC is $379.10b, while the market cap for BCH is $2.24b.
Is Bitcoin Cash the same as Bitcoin?
Bitcoin Cash is not the same as Bitcoin. While they share similarities, such as their total supply, they also have notable differences.
For example, BCH has a block size of 32 megabytes while BTC’s is just one megabyte. BCH also has faster transaction times, lower fees, and a lower price per coin.
What’s more, when it comes to Bitcoin vs Bitcoin cash differences regarding the market cap, the former is way ahead.