Bitcoin Cash is born from the first Bitcoin Hard Fork and is, for its community, better than its parent. That is why they hope that at some point it will be able to overcome it, giving rise to one of the biggest rivalries in the crypto ecosystem.
Bitcoin has gone through different hard forks, known as Hard Forks, with which it has sought to implement modifications, which are not compatible with the version in use.
The Hard Forks cause an immediate separation from the chain where, in theory, only the longest should remain, or in other words, the one with the most support.
However, a good part of these events occur after a lack of consensus among the participants, causing the minority group defending the disruptive idea to end up separating from the chain, and maintaining the new one to implement those changes that were not supported by the most.
The birth of Bitcoin Cash
Bitcoin’s scalability has been an issue since its inception, which has led to constant disputes among community participants.
The number of transactions per second of BTC is limited by:
- The maximum size of the 1 MB block that your code imposes.
- The average time of 10 minutes for the creation of new blocks.
Thanks to these limits, between 3.3 and 7 transactions per second are currently carried out in your chain, which causes a huge disadvantage in terms of the most used payment methods. The company behind Visa credit cards are able to process more than 1,700 transactions per second.
Despite numerous attempts to eliminate this scalability problem, the vast majority agree that the short-term solution will only bring more drawbacks, mainly linked to security.
Bitcoin Cash is born from this discussion, through a hard fork that was intended to immediately increase the size of the block to 8 MB. Today, its size has already increased to 32 MB. However, confidence in their parent continues to be higher.
Will the Bitcoin Cash chain ever get over it? Let’s look a little more in detail at the pros and cons of both cryptocurrencies.
Bitcoin Cash vs. Bitcoin
- BCH can process transactions faster, decreasing confirmation wait times, and reducing transaction fees.
- Bitcoin has greater popularity and confidence, offering a market of greater liquidity and usability in the everyday world.
- Bitcoin’s current transaction capacity is not enough to make it a global means of payment. The only most supported solution, not yet implemented, is off-chain transactions.
- Increasing the size of the block in Bitcoin, forces the nodes to use more resources.
- Higher commissions per commission in Bitcoin, product of large blocks and slow validation. For some, it shows a silver lining by eliminating spam transactions and incentivizing miners to stay online. From a negative point of view, it reduces its attractiveness to users, and may even stop or reverse the adoption of the cryptocurrency.
Why does the Bitcoin network not want to increase the size of the block?
A Hard Fork to implement such a modification needs a majority consensus. If the new code fails, the consequences would be catastrophic for its reputation.
The propagation of the network, as the block increases in size, will be slower, leaving orphaned blocks in its path, which may cause the well-known double expense.
In addition, this could also generate centralization in the chain, due to the lower participation of complete nodes in the network. However, for advocates of the increase, this problem would be solved with later modifications.
At the moment, the arguments to say that Bitcoin Cash will surpass Bitcoin are not many.
While BCH’s advocates claim that at some point BCH will outperform its parent, thanks to its increased transactional capacity, Bitcoin continues to hold the lead with much advantage.
Bitcoin’s market capitalization occupies 64.76% of the total cryptocurrency market.
That of Bitcoin Cash is only 2.29%, which leads it to occupy 5th place among the top of the largest by capitalization.
Meanwhile, Bitcoin SV, another community that competes for first place, owns 1.76% of the total.
Roger Ver, a leading crypto influencer, assured in an interview for Forbes that Bitcoin Cash will surpass Bitcoin, based on the association of different names recognized worldwide, which promote the massive adoption of the cryptocurrency through trade between real people and businesses.
And so, a good list of supporters with the chain created after this first great Hard Fork.
Who do you think will be the winner in this Bitcoin Cash vs. Bitcoin battle? Leave your forecast in the comments!