This theory holds that, because bitcoin is much more valuable, people are more attracted to it, which in turn makes it more valuable and attractive. BTC also has the original name of Bitcoin, which has helped increase its brand awareness.
According to Saed News, Bitcoin Cash, also known as Bcash, acts as a payment network and a cryptocurrency whose main transaction unit is the BCH token. Bitcoin Cash is a peer-to-peer e-money for the Internet that does not require any central bank or trusted third parties to operate and is completely decentralized. This digital currency was created on August 1, 2017 to solve bitcoin problems. The main focus of Bitcoin Cache is on transaction capacity. This cryptocurrency uses the SHA-256 algorithm and its maximum supply is 21 million BCH. This payment network is similar to Bitcoin in many ways, but the two currencies also have many technical differences.
What is the difference between Bitcoin Cash and Bitcoin?
Just like Bitcoin (BTC), Bitcoin Cash is a peer-to-peer cryptocurrency that can be sent directly to anyone anywhere in the world without intermediaries. There are two main differences between the two currencies Bitcoin Cash and Bitcoin:
This digital currency has a larger block size, which on average reduces transaction and transfer costs faster.
Bitcoin has a much higher value than this cryptocurrency.
Because of these differences, many people consider bitcoin as a form of digital gold and bitcoin cash as a form of digital money.
Which features of Bitcoin Cache are better than Bitcoin?
Bitcoin Cache has technical differences that make it cheaper to use than Bitcoin. In particular, Bitcoin Cache has a block size of 32 MB while the Bitcoin block size is 1 MB. This means that the BitcoinCash blockchain is able to handle many more transactions, and this feature keeps costs low even when used a lot. In contrast, during high activity, the Bitcoin blockchain fills up and transactions have to wait in line, which slows down transfer time and increases costs. In short, BCH digital currency is much faster and cheaper than BTC.
What makes Bitcoin better than Bitcoin Cache?
The main technical drawback of larger blocks is that they are harder for miners to grasp, and this can lead to problems such as incorrectly splitting the Chinese block into several branches. Of course, this is an advantage for miners who are able to receive and summarize them, and as a result, the risk of the Chinese block being concentrated around these miners increases. Fortunately, this is more theoretically true of this digital currency, as the size of 32 MB is not large enough to cause this kind of problem (Bitcoin Cache has not yet fully utilized its block size). . But the main reason that bitcoin is better than bitcoin cache is that bitcoin has much more value, so people use it more (than bitcoin cache). In digital currencies, the value of a coin is functionally very important because it determines the security and reliability of that network.
Why is bitcoin worth more than bitcoin cash?
If this cryptocurrency is cheaper and faster, then why is bitcoin more valuable? The exact answer to this question is not clear, but there are two main theories: economic and social
Economic theory
This theory holds that friction, including higher costs and slower transfers, is actually useful for maintaining the value of assets. Because, it becomes harder and more expensive to use (either to sell or to spend). These high costs and slow transfers encourage people to keep their bitcoins instead of spending, which reduces the total number of bitcoins available in the open market and, consequently, prices towards The climb has moved.
Social theory
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The theory is that because Bitcoin is so much more valuable, more people are attracted to it, which in turn makes it more valuable and attractive. BTC also has the original name of Bitcoin, which has helped increase its brand awareness.
What to consider before buying Bitcoin Cache
Bitcoin Cache performs much better than Bitcoin, and its larger block size has not caused any problems so far. But is that enough? When examining this cryptocurrency, pay attention to the following points:
As a store of value
Looking at the cryptocurrency market, you can see that Bitcoin clearly has a priority over this digital currency, and despite the performance benefits of this cryptocurrency, this currency has fewer users than Bitcoin. If we look at these two currencies from a value-saving perspective, bitcoin seems to have an advantage.
As a digital currency
The capabilities of payment-oriented digital currencies such as this digital currency are limited due to their fluctuations. Stable coins, on the other hand, are less likely to have such problems because of their backing, and are usually an alternative to such digital currencies. But on the other hand, the fluctuations of this digital currency are considered an advantage for those who want a currency that is independent of the value of Fiat currencies.
In terms of support
This cryptocurrency has a relatively small development team, which has limited the speed and scope of development of this program on the Chinese block.
What is the right wallet for Bitcoin Cash?
Almost all major cryptocurrencies wallets support bitcoin cryptocurrencies. Some of the best software wallets for this digital currency are EXODUS and Coinbase, and hardware wallets made by LEDGER and TREZOR are also known for their reliability and security.
Benefits of Bitcoin Cache
Bitcoin Cash Returns
As mentioned earlier, the maximum bitcoin block size is 1 MB and this digital currency is 8 MB. Naturally, having a larger block allows transactions to be verified and processed more quickly.
Accepted in major crypto exchanges
This digital currency is accepted in almost all top cryptocurrency exchanges, and this shows the ease of use and ease of buying and selling this coin.
Less cost and shorter transfer time
This digital currency has a low transfer cost (about $ 0.20 per transaction) and transacts faster (compared to BTC) and no longer requires 10 minutes like Bitcoin to confirm a transaction. wait. As a result, this cryptocurrency is able to manage more transactions per second.
Disadvantages of Bitcoin Cash
Bitcoin Cash is very centralized and the number of pools is currently limited. This can be very effective because the future of this currency depends heavily on these few pools.
Due to growing concerns about the focus of the digital currency and its brand, the coin has not yet been able to differentiate itself from the digital currency bitcoin, which has eroded investor confidence in the cryptocurrency.
Investors still do not consider this digital currency as a long-term asset and use it more as a short-term tool. For this reason, this cryptocurrency currently has an uncertain future.
This digital currency has a lower acceptance rate and audience than Bitcoin, and this means that Bitcoin Cash has fewer trading pairs when trading.
In what cases can Bitcoin Cash be used?
send and recieve
An important feature of Bitcoin Cash is that you can receive it directly from one person or send it to another (at a very low transaction cost). In fact, you do not need a trusted third party such as a bank or intermediary to transfer it. This is important when you are planning to send money to the rest of the world despite all the restrictions.
Payment Method
Just like Bitcoin, you can use this cryptocurrency as a payment method. Since Bitcoin Cash is a relatively new currency compared to Bitcoin Bitcoin, it has received little acceptance and its use as a payment method has not yet become common.
investment
Finally, this cryptocurrency can be considered as an investment opportunity. The price of this cryptocurrency, like many other digital currencies, fluctuates so much that short-term investors can take advantage of this opportunity to make money. "Always remember, invest only as much as you can afford to lose."
