If you’ve been exploring the world of cryptocurrency, you’ve likely come across two names that sound quite similar—Bitcoin (BTC) and Bitcoin Cash (BCH). While they share a common origin, these two cryptocurrencies have distinct differences that are important for both new and experienced users to understand. This guide will walk you through their history, technical distinctions, and how to buy both Bitcoin and Bitcoin Cash.
By the end, you’ll have a clear idea of which might be better suited to your needs, whether you’re looking for an investment, a way to send quick payments, or both.
The Origins of Bitcoin and Bitcoin Cash
Bitcoin’s Creation
Bitcoin was created in 2009 by an anonymous figure (or group) known as Satoshi Nakamoto. It was the first decentralized digital currency designed to operate without a central authority like a bank or government. Its purpose was to allow peer-to-peer transactions on a global scale, providing an alternative to traditional currencies. Over the years, Bitcoin became known as “digital gold” due to its increasing value and growing use as a store of wealth.
The Bitcoin Cash Hard Fork
By 2017, Bitcoin’s popularity had skyrocketed, and with it came a crucial issue—scalability. Bitcoin’s network, designed with a 1 MB block size limit, was facing delays and higher fees due to the sheer volume of transactions. This prompted a heated debate within the Bitcoin community: should Bitcoin remain focused on security and decentralization, or should it prioritize lower transaction fees and faster payments?
The disagreement led to a “hard fork” in August 2017, which resulted in the creation of Bitcoin Cash. Bitcoin Cash increased the block size to 8 MB (and later even larger), allowing more transactions to be processed per block. This change aimed to make Bitcoin Cash a more usable currency for everyday transactions, whereas Bitcoin remained the primary choice for long-term investment and wealth storage.
Technical Differences Between Bitcoin and Bitcoin Cash
Understanding the technical differences between Bitcoin and Bitcoin Cash is crucial to making an informed choice about which cryptocurrency to use.
Block Size
The most significant difference between Bitcoin and Bitcoin Cash lies in their block size. Bitcoin operates with a block size of 1 MB, which allows for about 7 transactions per second. Bitcoin Cash, on the other hand, started with an 8 MB block size and can handle many more transactions per second as a result. Today, Bitcoin Cash blocks can reach up to 32 MB, allowing the network to process over 100 transactions per second.
Larger blocks mean that Bitcoin Cash can process transactions more quickly, which is ideal for smaller, everyday payments.
Transaction Speed
Bitcoin’s smaller block size means that its transaction speed can slow down significantly during times of high network activity. Transactions can take anywhere from a few minutes to over an hour during periods of congestion. Bitcoin Cash, with its larger blocks, is designed to handle more transactions at a time, reducing delays and allowing for faster transaction confirmation times.
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Transaction Fees
The cost of sending Bitcoin tends to be higher due to its block size limitations, especially when the network is congested. Bitcoin Cash, by contrast, generally has lower fees, making it a better option for smaller or more frequent transactions. For example, sending $5 worth of Bitcoin Cash might cost just a few cents in fees, while sending the same amount of Bitcoin could cost significantly more.
Use Cases: Bitcoin vs. Bitcoin Cash
Bitcoin’s Use Cases
Bitcoin is most commonly referred to as “digital gold,” and many investors treat it as such. Its primary use case is as a long-term store of value, similar to how people use gold. Over time, Bitcoin has gained popularity as an inflation hedge, a portfolio diversifier, and an investment vehicle. It has also garnered significant attention from institutional investors and has become widely accepted in major financial markets.
Bitcoin Cash’s Use Cases
Bitcoin Cash was created with usability in mind. Its primary purpose is to be used for everyday transactions like buying goods and services. Thanks to its lower transaction fees and faster speeds, it’s more practical for making smaller payments than Bitcoin. Many merchants and retailers have adopted Bitcoin Cash as a form of payment, and it’s increasingly used in e-commerce and peer-to-peer transactions.
Network Security
Bitcoin’s Security
One of Bitcoin’s greatest strengths is its massive network security. Bitcoin operates with the highest hash rate (the computational power used to mine and secure the network) of any cryptocurrency. This makes it incredibly secure and resistant to attacks. The larger and more decentralized the network, the harder it is for bad actors to compromise it, and Bitcoin’s network is the largest in the world.
Bitcoin Cash’s Security
Bitcoin Cash, while secure, has a lower hash rate compared to Bitcoin. This lower hash rate makes it slightly more vulnerable to potential attacks, though its network is still considered secure for daily use. However, Bitcoin Cash doesn’t have the same level of security as Bitcoin when it comes to protecting very large amounts of value over time.
What to Know When Using Bitcoin and Bitcoin Cash
While both Bitcoin and Bitcoin Cash can be used for digital payments, they are not interchangeable. Here are a few things to be aware of:
Separate Networks
Bitcoin (BTC) and Bitcoin Cash (BCH) operate on completely different blockchains. They may share a name and similar origins, but their transactions are processed on separate networks. Sending Bitcoin to a Bitcoin Cash address (or vice versa) could result in lost funds, as these two currencies are not compatible.
Separate Wallets
When dealing with both cryptocurrencies, you will need separate wallets for each. Many wallet providers, like RockItCoin’s mobile app, allow users to hold and manage multiple types of cryptocurrencies, but it’s essential to make sure you are using the correct network for each transaction.
Not a One-Size-Fits-All Currency
Bitcoin is more of a store of value, while Bitcoin Cash is built for speed and low fees. Understanding their differences can help you choose the right currency for your specific needs—whether that’s saving for the future with Bitcoin or making everyday purchases with Bitcoin Cash.
Transaction Fees and Speeds
Always be mindful of the transaction fees and speed differences. Bitcoin transactions can be slower and more expensive, especially during periods of high network activity. Bitcoin Cash is a better choice if you need faster and more affordable transactions for smaller payments.
How to Buy Bitcoin and Bitcoin Cash
If you’re ready to buy Bitcoin or Bitcoin Cash, RockItCoin makes the process easy and secure through our nationwide network of Bitcoin ATMs.
Why Use RockItCoin ATMs?
- Convenience: With RockItCoin ATMs located across the country, buying Bitcoin or Bitcoin Cash has never been easier. You can find an ATM near you, make your purchase, and get your cryptocurrency instantly.
- Speed: Transactions are fast and simple—ideal for beginners and experienced users alike.
- Security: RockItCoin ensures that your transactions are safe, with a high level of customer service and support.
How to Make Your Purchase
- Locate a RockItCoin ATM near you using our ATM locator.
- Visit the ATM. Once you’re at the kiosk, you may need to verify your identity.
- Select Bitcoin or Bitcoin Cash as your cryptocurrency.
- Scan your Bitcoin or Bitcoin Cash wallet.
- Insert the desired amount of cash to make your purchase.
- Select ‘Finish’ and you’ll receive a receipt with your purchase details.
Buy Bitcoin and Bitcoin Cash at a Bitcoin ATM Near You 🡢
Conclusion
Bitcoin and Bitcoin Cash might share a common origin, but they have evolved to serve different purposes. Whether you’re looking for a store of value or a practical currency for everyday use, understanding the differences between these two cryptocurrencies can help you make informed decisions.
Ready to get started? Visit a RockItCoin ATM today to purchase Bitcoin or Bitcoin Cash and take your first step into the exciting world of cryptocurrency.
