From year to year the fight between two crypto titans increases – BTC vs BCH. But where exactly is their problem? These and all related differences between Bitcoin and Bitcoin Cash, we’ll explain in a few following paragraphs. So let’s get started!
Bitcoin as the most well-known cryptocurrency in the world was created in 2009 by an anonymous programmer – Satoshi Nakamoto – whose probable value of the BTC portfolio is 1 Million BTC which is almost $10 Billion at the current exchange rate. The Bitcoin network is based on its own decentralized blockchain technology, which employs peer to peer transaction processing.
Bitcoin’s hash rate has just hit an all-time high.
With uncertainty around the world growing, the Bitcoin Network seems to be the only thing people feel more certain about every day. pic.twitter.com/wXFRFMVBH0
— Bitcoin (@Bitcoin) March 2, 2020
Our article covers many difficult concepts that we should consider, such as blockchain, peer-to-peer communication and decentralization. Let’s try to explain what each concept consists of.
Blockchain itself is nothing but a chain of connected blocks containing information about transactions and previous blocks. The lack of a central unit such as a government or bank that oversees transactions makes it decentralized. Transactions in the blockchain network are verified and processed by users themselves, who create transactions directly from the sender to the recipient – a peer-to-peer communication.
Not so difficult, right? But what about those who create these blocks? We are touching there another necessary concept in the crypto world – mining. Bitcoin mining consists of creating new blocks.
Miners, as they are commonly called, perform by computer a lot of difficult mathematical algorithms forming a block. After creating and adding a new block to the network, the transaction fee, which the sender pays, is shared by the miners, and the recipient receives funds to his wallet address.
Bitcoin Cash was created in 2017, so it is much younger than its brother Bitcoin, is its derivative called a hard fork. Someone might ask: what is this hard fork? The hard fork is created when developers make changes to the original code, but only some nodes of the entire network accept them. In other words, some developers working on the Bitcoin network introduced changes by creating their own, based on the original blockchain, network – this is how Bitcoin Cash (BCH) was born. In addition, all holders of the original Bitcoin at the time of separation received a certain amount of BCH corresponding to the amount of BTC owned.
So when we already know what a hard fork is and how it happens that cryptocurrencies can have their derivatives, we can go to its differences – BTC vs BCH.
Now, it’s time to sum up our knowledge and describe some differences between two crypto – Bitcoin and Bitcoin Cash. So let’s describe it in several sections:
Summarizing all the above paragraphs, we have gained a coveted dose of knowledge about two great cryptocurrencies – Bitcoin and Bitcoin Cash. Which one is better to invest in? Decide for yourself. Bitcoin? Bitcoin Cash? Or both? It is also worth mentioning that Bitcoin Cash also had its own fork, which resulted in Bitcoin SV, but this is the material for the next article.
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