08/01/2017 - the date of the separation of the new Bcash cryptocurrency from the bitcoin network. When part of a large company becomes an independentorganization, the magnitude of the individual asset is usually anticipating to be higher. We find out if this is the pouch with Bitcoin Cash, how it differs from its predecessor and what its future holds.
The main reason for the BTC network's hardforward (what’s a hardfork - switching to a new protocol unable to interface with the precede version) was that parties of developers proposed competing plans to better network's protocol. They could not come to a consensus, and so network split into 2 parts.
In other words, some of the nodes (controlling the circuit of blocks for checking, as well as controlling the legality of deals and sorting in case of illegal operations) still continued to use the original software, and the other half of the nodes implemented an updated version of the software in their work. The second group, having launched a new version of the software, contributed to the automatic conversion of BTS to BCH.
You now have a fair amount of knowledge about the differences between the two assets.
Similar and different features in the philosophical field. A number of the creators of BTS saw the product being created in a greater focus on long-term prospects, that is, storage, but the subsidiary currency - we are talking about BTS now, sought to realize itself in transactions and short-term transactions. It was from here that the first letter of the name, from the word "cash", was added to the subsidiary asset.
BCH fans were also uneasy about the skyrocketing demand with limited scaling. Therefore, the creators came to the conclusion and subsequent implementation of the expansion of deal blocks by magnification the size of the block cell. This made it possible to carry out significantly more simultaneous processes, i.e. operations.
The original size of one block of the BTC was equal to eight megabytes, and in comparison with its competitor BTC was 8 times larger. Nevertheless, by 2018, the difference was increased by another 4 times compared to the previous indicators of the difference.
The end of 2017 was a significant event for Bitcoin, because at that moment the unit price jumped to its peak value, namely $ 20,000. A similar jump was also facilitated by the appearance of other crypto currencies on the market. Apparently, the creators of the BCH anticipated such a success, which is why they expanded the ability to make the number of transactions at a time for their asset.
Node Mechanism. This was another factor in the disagreement.
BTC supporters consider that 2-layer protocols, such as the Lightning Network, are the best way to scale. At the same time, Bitcoin Cash team believes that larger blocks will eventually make network more convenient for multiple transactions. They hoped BCH would become PayPal 2.0 in the future.
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The key difference between BTC and BCH is determined by the fact that the first coin is Bounded to a block of 1 Megabyte, while the other is bounded to 8 Megabytes. A block of BTC can hold two and a half thousand transactions, unlike the BCH, which could produce up to seven thousand.
Nevertheless, despite the intriguing sounding prospects, Bitcoin Cash is practically a currency without support, the opposite situation is observed with BTC.
If you choose where to invest your cash, Bitcoin still Looks Like the best option. BCH can collapse at any moment and find itself at the bottom of the cryptocurrency table, becoming another altcoin with little real value.
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First and foremost, currencies differ in transaction costs and fees.
BTC is often positioned as digital gold, and BCH supporters criticize this approach while promoting their currency. They make the following argument on their website: global cash currency market is valued at $100 trillion and global gold market at $10 trillion. Based on the available knowledge that the cash market is much larger than the same market, but with gold (namely, 10 times), we can conclude that BCH has much more significant potential for growth.
Fans of the currency also note that out of three trillion banking transactions in the world every year, 3/4 are in cash. The remaining interest is divided almost in half between payments with cards, and the second half goes to other payment methods. It follows from this that the new coin will be more acceptable for making deals on a daily basis, because such transactions have minimal commissions and a much faster transfer.
In conclusion, it can be noted that these two coins can pursue completely opposite goals: BTC can be used as a long-term asset, implying long-term temporary storage, and BCH as a means of payment.
You can also rejoice at the fact that the capitalization of the world cryptocurrency market is growing. In part, such merits can be attributed to the height of Bitcoin and the making of other coins.
Despite all this, BTC is likely to continue to actively grow both due to demand and due to price, which in the future will allow it to find a way out and get away from the problem of scaling. And the BCH is supposed to be used in the world as a temporary medium of exchange and, of course, its popularity and demand will never come close to its creator - Bitcoin.
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