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Over the years, bitcoin has become the trendsetter in the cryptocurrency world. It has ushered in a new wave of cryptocurrencies that operate in the same decentralized and peer-to-peer network. As a result, it has become the gold standard for all cryptocurrencies in the world. In turn, bitcoin is no longer the only player in the crypto scene. 

There are thousands of other emerging digital currencies. They include ethereum, Litecoin, bitcoin cash, tether, and Ripple, among many others. One of the most potent coins that pose a severe threat to bitcoin is bitcoin cash. This article will aid in determining the better investment: bitcoin or bitcoin cash.

Which should you buy: bitcoin or bitcoin cash?

As mentioned earlier, bitcoin is the backbone of all cryptocurrencies. Although there are better virtual coins, bitcoin has a network effect like no other. Before finding the better investment, bitcoin or bitcoin cash, you must understand their origin and recent market performance. Without further ado, let us dive straight in!

What is bitcoin?

Created in January 2009, bitcoin is a digital currency made by the pseudonymous Satoshi Nakamoto. Unlike traditional online payment systems, bitcoin works on a decentralized platform. It also offers its users lower transaction fees. There is no physical representation of bitcoin, making it a purely virtual coin. 

Bitcoin is among the first digital currencies to use peer-to-peer technology. Its creation, distribution, trading, and storage occur through a decentralized ledger system, also known as a blockchain. As a result, bitcoin has gained widespread popularity as a store of value. In 2017, its demand skyrocketed to $20,000 per coin, bringing in more investors and traders. Bitcoin's current trading price is $46,804.70.

Bitcoin miners use a massive amount of computing power to mine bitcoins. Upon processing bitcoin transactions, these miners gain bitcoin rewards and commissions from transaction fees. There is a total supply of 21 million bitcoin tokens. As of January 30, 2021, bitcoin's available balance supply in existence is 18,614,806 bitcoins. Thus, there are only 2,385,193 bitcoins left.

What is Bitcoin Cash?

Launched in August 2017, Bitcoin Cash is a result of a hard fork on the bitcoin platform. With bitcoin's growing popularity, more and more transactions were taking place. These transactions, in turn, made the system slower. The bitcoin network can only perform seven transactions per second. In comparison with credit card transactions' processing fees, this is incredibly slow. Also, the longer the transaction takes to complete, the more the transaction fees charged. 

With bitcoin's scalability in question, some crypto enthusiasts performed a hard fork to create bitcoin cash. A hard fork implies that there were changes made to the blockchain's design. This created new blocks to function on a different blockchain platform. As a result, the technology used by bitcoin cash is very similar to that of bitcoin. There is a total supply of 21 million bitcoin cash tokens.

Bitcoin cash is a payment system that people can send and receive funds through it. But, this cryptocurrency has a faster transaction rate and at lower fees. According to CoinMarketCap, Bitcoin Cash is the tenth cryptocurrency with a market capitalization of $9,853,655,545. 

Bitcoin vs. Bitcoin Cash: What is the difference?

As mentioned earlier, bitcoin and bitcoin cash are two different cryptocurrencies. They function on separate blockchain platforms. Before knowing which cryptocurrency is better, you must understand their differences. They include:

• Faster transaction times

With bitcoin gaining more popularity, more investors and traders are using the platform, leading to its overload. As a result, bitcoin's average processing rate is quite slow, especially during high transaction times. Currently, bitcoin transactions take about 10 minutes to about two days to verify.

Bitcoin Cash offers its users faster transaction processing rates than bitcoin. Generally, the bitcoin cash network can process up to 15 transactions in up to 150 minutes. Thus, more traders prefer bitcoin cash due to its faster transaction rate per second.

• Low transaction fees

Since the bitcoin cash network is faster, its transfer fees are lesser than bitcoin. Bitcoin transactions can cost around $25 per transaction. On the other hand, bitcoin cash transactions cost about $0.20 per transaction. 

Bitcoin cash is faster and cheaper because each block on its blockchain platform is eight times bigger than bitcoin. As a result, bitcoin cash is more scalable, faster, and cheaper than bitcoin. 

• Which has a higher market value: bitcoin or bitcoin cash?

Although bitcoin and bitcoin cash are holders of value, bitcoin is the undeniable leader of all crypto. But, bitcoin cash is also gaining value, and more users fast due to its instant transactions and low fees. Many crypto community players believe that bitcoin cash will take a massive chunk of bitcoin's market share. Thus, leading it to become the dominant crypto. 

Many investors and traders prefer bitcoin cash because it tackles bitcoin's scalability issues. Thus, more users can access it at a specific time at lower fees and faster transaction rates. In terms of market value, bitcoin cash is trading at $226.83, while bitcoin's current trading value is $10,258.22. Thus, 1 bitcoin=44.90 bitcoin cash. 

So, should you invest in bitcoin or bitcoin cash?

After understanding the differences between these two cryptos, you can easily choose the better investment. It is worth noting that none of these two cryptocurrencies are better than the other. They both have their advantages and disadvantages. Bitcoin is the gold of all cryptocurrencies. But, bitcoin cash is faster and cheaper to transact within the blockchain platform.

After considering the benefits and drawbacks of these two cryptos, it is better to invest in bitcoin cash. This is especially true if you often perform crypto transactions. It is an ideal option for use as the primary transaction currency. But, you can also invest in bitcoin, but only to take advantage of its investment benefits. 

Conclusion

Before deciding on whether to invest in bitcoin or bitcoin cash, it is vital to do your research. As mentioned earlier, bitcoin cash is a faster and cheaper crypto asset when it comes to transactions. However, bitcoin is still the greatest store of value and highest adopted cryptocurrency in the world. In the future, both of these coins will definitely become staples in the crypto world as they continue to develop and mature.

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