- Bitcoin is the most widely recognized form of cryptocurrency on the market.
- BCH (Bitcoin Cash) is a new currency originated by Bitcoin miners and developers on a hard fork.
- The best form of investment is completely dependent on the needs of users and their ability to take risks.
Bitcoin Cash is a new currency that was developed in 2017 by some Bitcoin miners and developers who were concerned about the future of Bitcoin. Both are efficient and highly used by users. But to decide which investment is better is highly dependent on the needs of users.
What Is Bitcoin?
Bitcoin, a crypto coin, is a form of digital currency just like other cryptocurrencies. It is decentralized, unlike our physical currency. It was the first established cryptocurrency, a digital asset that can be exchanged. It was developed by an anonymous Satoshi Nakamoto as a ‘new electronic cash system’ in 2009. It is so completely decentralized that even Bitcoin owners are anonymous, with no details related to their accounts, names, social security numbers, or other identifying features.
There are currently 16 Million bitcoins and the maximum limit of their existence is 21 Million. Just like diamond and gold mining, bitcoins also mine to make more. The process of mining involves computers that solve extremely complex and challenging mathematical problems to make more bitcoins, which gets harder each time. Many websites give bitcoins after completing certain tasks. Since it is a form of digital currency, it has some risks. There is no governing body and hence, it is more appealing to criminals. The lack of regulation makes it risky as well.
Bitcoin Cash (BCH) originated from a ‘hard fork’ that split off from the Bitcoin blockchain into its own cryptocurrency and network. It was started by Bitcoin miners and developers who were concerned with the future of the cryptocurrency and its ability to scale effectively. Developers initiated a hard fork in August 2017 and effectively created a new currency. It has its own blockchain and specifications.
Over the years, Bitcoin has become best known as a store-of-value investment comparable to digital gold. Whether a user should buy Bitcoin Cash or Bitcoin completely depends on their goals related to cryptocurrency and appetite for risk. Both are excellent cryptocurrencies for making transactions or payments. Bitcoin has had a higher ceiling historically but consistently has a higher purchasing cost. The higher the transactions per second on the blockchain, the faster and cheaper transactions will be for users and the more conductive its native cryptocurrency will be for spending instead of holding. The addition of Layer 2 solutions such as the Lightning Network has made Bitcoin a much more efficient means of payment.
Though the names are quite similar and originated from the same technology and blockchain, Bitcoin Cash and Bitcoin are different when it comes to functionality. BCH goes a long way toward solving many of the limitations of the Bitcoin network. BCH keeps transaction fees low and it also enables near-instant settlement. This makes it an ideal cryptocurrency for spending. Bitcoin is getting help from Layer 2 solutions and it will remain the most popular cryptocurrency.