What is Bitcoin Cash? What is the difference between Bitcoin and Bitcoin Cash?

August 3, 2022

Bitcoin

What is Bitcoin Cash? What is the difference between Bitcoin and Bitcoin Cash?

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It is easy to confuse Bitcoin and Bitcoin Cash and even wonder which is the original Bitcoin and what the other represents. Sometimes, there are no clear details about some projects in the crypto space, and this confusion persists when there are two similar projects. Users need to research to better distinguish both.

Bitcoin and Bitcoin Cash are top coins crypto users should consider adding to their investment portfolio. But where does the difference lie beyond having similar names, symbols, and abbreviations?

To clearly distinguish both cryptos, we will define them in this article. At the same time, we will examine their protocols to understand how they work and what each user should know about them. But let us begin by defining each concept below.

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What is Bitcoin?

Bitcoin originated before Bitcoin Cash, so it is right that we define Bitcoin before we define the latter. Our definition of Bitcoin might help inform what we need to know about Bitcoin Cash.

According to Investopedia, Bitcoin is a cryptocurrency which means a form of digital currency created to act as money and a form of payment, completely decentralized and beyond the control of any one person, entity or group, therefore eliminating third-party engagement in financial transactions. Bitcoin.com defines it as a pioneer cryptocurrency that digitally allows peer-to-peer (P2P) transfer of value via decentralized systems intending to acquire a worldwide consensus on a Blockchain.

In simpler terms, Bitcoin is a digital coin introduced in 2009 as an alternative to the traditional mode of financial transactions to one that thrives on decentralization and digital currencies known as cryptocurrencies. It is also known as BTC and trades against many Altcoins in the crypto space. It was introduced in 2009 by Satoshi Nakamoto, an unknown developer or group of developers whose identity remains unknown to date.

What is Bitcoin Cash?

Bitcoin Cash, also known as BCH, was created in August 2017 to improve the existing Bitcoin system. Thus, BCH is widely regarded as a “fork” of Bitcoin and was created to improve scalability and transaction speed. So, Bitcoin Cash is a digital cryptocurrency created out of the existing Bitcoin system, but with some differences from its original model.

It is regarded as a “fork” of Bitcoin because it emerged from the hard fork that occurred to Bitcoin in August 2017.

What Distinguishes Bitcoin Cash from Bitcoin?

While both Bitcoin and Bitcoin Cash have similarities in that their names are very similar, run on the same mechanism, and can be said to have been derived from Satoshi’s original decentralized payment system plan. There are still stark differences between both cryptocurrencies, which are vital to know.

So, below are factors that distinguish both coins.

The Symbol and Name

Users must know how to identify each crypto, especially if they want to invest in them. You do not want to make the mistake of buying Bitcoin when you intend to buy Bitcoin Cash.

So, first, Bitcoin goes by the acronym BTC, while Bitcoin Cash goes by BCH. This is how crypto exchanges list them. Also, below are examples of the Bitcoin logo and the Bitcoin Cash logo.

The BCH logo is mostly green, and that of BTC is mostly orange. Also, note that the logo of Bitcoin tilts to the right, while that of Bitcoin Cash tilts to the left.

The Price

Another major difference between both cryptocurrencies is their price. Currently, on CoinMarketCap, Bitcoin (BTC) is trading for about $23,939.99, while Bitcoin Cash (BCH) is trading for $152.26. Often, the trading price of BTC is always higher than that of BCH, and an increase in the price of BTC often leads to a corresponding increase in the price of BCH in the market.

As of the time of writing this article, BTC has a market capitalization of over $457 billion, while BCH has a market capitalization of about $2 billion.

The Scalability

It is vital to note that as the adoption of Bitcoin grew massively across the world, the number of transactions on the network increased, causing scalability issues. So, the scalability difference between BTC and BCH is one of the founding reasons for Bitcoin Cash.

The Bitcoin Cash blockchain was built to handle more transactions than Bitcoin. For instance, in 2018, during a test, the BCH network recorded about 25,000 transactions per block; notably, before that, BTC’s network recorded about 1,500 transactions per block.

Conclusion

Bitcoin and Bitcoin Cash are two cryptocurrencies cut from the same clothes with minor differences. They have virtually the same circulating supply. BTC and BCH operate a Pow (Proof of Work) consensus mechanism with very similar symbols. However, in terms of issues like price and scalability, both differ. More so, Bitcoin enjoys a more widespread adoption in the global market than Bitcoin Cash. So, it is not uncommon to find more use for BTC in the market than you would for BCH.

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