Exchange Bitcoin Cash (BCH)

There is a difference between Bitcoin and Bitcoin Cash, and they are different assets for sure!

Here are the main distinctions: Bitcoin was created with an idea of a “perfect peer-to-peer cryptocurrency” for everyday operations and transactions, but, later the coin becomes more an investment asset than just a “currency”.  What was the purpose for making the Bitcoin Cash block bigger? The main task was to create the technology more scalable and process more operations per second, therefore, transactions became much faster. The idea of Bitcoin Cash is using crypto-transactions as a convenient means of payment, rather than a means of saving value. It is also worth noting the “profitability”, transaction fees for BCH are usually much lower than in original Bitcoins (BTC).

One of the reasons why Bitcoin Cash Fork had taken place was partially to answer whether separate crypto is needed to make the block size bigger. The main argument for the creation was the slow speed of Bitcoin transactions and the desire to fix it. It is believed that once cryptocurrencies will replace traditional payment systems such as Visa and Mastercard. And now, although Bitcoin and Bitcoin cache operations can process from 2 to 7 transactions per second, while Visa can process about 1700 transactions per second. In speed, for now, you need to compete for leadership.

Bitcoin Cash is not the same as Bitcoin in many other aspects too. For example, Bitcoin Cash operations do not support Segregated Witness – a solution for placing a bigger amount of transactions for one block.

In addition to obvious differences and different block sizes, there are still points in which these assets are similar. For example, both coins work like PoW to mine new coins.

Bitcoin Cash, like Bitcoin, uses the Emergency Difficulty Adjustment (EDA) algorithm which corrects complexity every 2016 blocks (in other words, approximately every two weeks). Miners could not help noticing this similarity, and of course, they took advantage of them while alternating their mining activities between Bitcoin and Bitcoin Cash. Although it was beneficial for the miners, this practice adversely affected the increase in the supply of BCH in the markets. Therefore, the BCH team has revised its EDA algorithm so that miners can easily generate cryptocurrency.

Despite the obvious differences between these coins, Bitcoin Cash and Bitcoin have some similarities in the technical part. The similarities are the same consensus mechanism and a maximum of 21 million coins supply.