Saturday, 09 June 2018 11:05

Bitcoin (BTC) vs Bitcoin Cash (BCH): Battle for the Top

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With Bitcoin currently under pressure from the bears we thought it an opportune time to look at the difference between the biggest cryptocurrency in the world and its often controversial brother, Bitcoin Cash.

Blockchain technology has sent shock waves through almost every industry on the planet with its potential to disrupt each in a significant way. Potential is the keyword here, because up until now there has been very little real-world disruption, with most crypto tokens still in the experimental stage. This is changing at a blustering pace as new projects come online and additional resources enter the space.

The Original Bitcoin

Bitcoin has been seen as the leader of this new famed tech ever since its mysterious & anonymous creator, Satoshi Nakamoto, first published the paper that started it all back in 2008. The now famous network first mined block No1 in January 2009, when the first transaction took place between Nakamoto and Hal Finney; the latter received 10 bitcoins as reward at a time when the mining difficulty was significantly less.

Today there is on average 200,000 transactions per day on the bitcoin network with an average block size of 0.78. Over 80% of the total bitcoin (Max 21 Million BTC) available has already been mined by the approximate 21 million active miners.

Bitcoin Cash

This is where the breakaway digital currency Bitcoin Cash enters the fray. In 2017 a group of developers decided that the limits of the original bitcoin’s block size and speed was too constricting to serve as a world currency, as the slow transaction speed would not be able to compete with the likes of Visa, Mastercard and Swift options already in use worldwide. (Visa’s 1700 transactions per second vs bitcoin 7 transactions per second!)

Bottlenecks in the blockchain caused long delays in transactions being verified and increased mining fees that made using bitcoin as a currency less viable.

The breakaway group did not agree with the current rules for the blockchain and decided to create a “hard fork” that would boost the number of transactions possible by making the block size limit 8 MB instead of the 1 MB of the main currency.

This new currency was launched in July 2017 and in the process of the hard fork, each Bitcoin owner received one Bitcoin Cash for each BTC coin.

Currently there are on average 120,000 transactions per day on the network with its price, as on 09 June 2018, at $1130 compared to the $7600 of its big brother. Fees are much lower on Bitcoin Cash with an average fee of $0.15 to $0.2 compared to $1 on BTC.

There has also been a slew of positive news for Bitcoin Cash of late with strong developer support in China on the up, including the announcement of a BCH wallet called Cash Pay that makes paying online for purchases much easier.

The battle for the main currency spot is far from over. Bitcoin Cash still has some way to go before it can claim the top spot. Investor confidence in Bitcoin far surpasses its rival, with Satosi’s coin currently making up 40% of the crypto market share. There are also far less trading pairs currently available for the younger rival.

Of late there has been some controversy around the main BCH proponent Roger Ver, and his methods for promoting said coin. Roger is the owner of bitcoin.com and has in the past used nefarious tactics to promote Bitcoin Cash over Bitcoin. In one instance, he created mass panic and confusion by promoting BCH as Bitcoin and the original Bitcoin as “Core”, potentially tricking users into buying BCH.

He has been quoted numerous times in the news stating his strong support for the newer currency:

“I have been telling people about Bitcoin since 2011. It allows you to send and receive any amount of money with anyone and anywhere instantly basically for free, and there is nothing anybody can do to stop it. This speech is still 100% true about Bitcoin cash today but no longer true about BTC.”

“Everything has scaled exponentially except for BTC. This is why I support BCH.”

“The peer-to-peer electronic cash system invented by Satoshi Nakamoto continues to live on as Bitcoin Cash (BCH). Bitcoin Core (BTC) is an experimental currency that does not have a white paper and has only operated under its current model for two years.”

BTC & the Lighting Network:

One saving grace for the original bitcoin might be the widespread implementation of the lighting network that will speed up transaction times significantly and might even make Bitcoin Cash obsolete.

Bitcoin Lightning Network Explained:

“The Lightning Network is a "second layer" payment protocol that operates on top of a blockchain (most commonly Bitcoin). It enables instant transactions between participating nodes and has been touted as a solution to the bitcoin scalability problem. It features a peer-to-peer system for making micropayments of digital cryptocurrency through a network of bidirectional payment channels without delegating custody of funds and minimizing trust of third parties.” Source: Wikipedia

Last Coin Standing?

Will we have to wait and see which one wins in the end but one thing is certain, one group will walk away the losers from this battle.

I for one will be investing in both of these coins, as there might come at time when both might coexist in the ecosystem; The one potentially being a store of value and the other a widely used digital currency. Some analysts still believe Bitcoin’s price will double in 2018, despite the now confirmed bubble crash we experienced so far this year.

Volume is at record low but most industry experts are bullish on the price, citing escalating investments in the sector, the burgeoning real world use cases and growing interest from the likes of Wall Street and Investment Funds.

cryptocurrency trading volumes 2018

There is also talk that the next bull run might be brought on by the profusion of new decentralized exchanges launching towards the end of the year and beginning 2019. This might in itself be the catalyst for the next bull run and subsequent bubble.

This is of course not investment advice and one should be extremely careful when dabbling in crypto currency as it is a high risk, high reward investment.

For more on registering at the popular exchanges and on how to buy crypto click on the links below:

Further reading:

More on Bitcoin: Wikipedia: https://en.wikipedia.org/wiki/Bitcoin 
More on Bitcoin Cash: https://en.wikipedia.org/wiki/Bitcoin_Cash 
More on Satoshi Nakamoto: https://en.wikipedia.org/wiki/Satoshi_Nakamoto 
More on Roger Ver: Wikipedia https://en.wikipedia.org/wiki/Roger_Ver

BTC Trading View Chart:

bitcoin year to date chart trading view south africa

Bitcoin Cash Trading View Chart:

bitcoin cash year to date chart trading view south africa

 

 

 

 

 

 

 

 

 

 

 

 

 

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